postipedia.com – When choosing a big trading company, you must select the one you feel comfortable dealing with. You should also choose one with the strength to provide you with all the needed services. Here are five questions to ask any company before you open an account. Another critical question to ask is whether you have to pay any fee before you can open an account. A strong company should offer you various services, including technical support.
Trade companies act as an intermediary between factories and importers
In general, trade companies act as an intermediary between importers and factories. A factory handles a large order, typically a 20′ container. A trading company handles orders for smaller orders, including single items or small quantities. Both companies serve their purpose, and each serves the needs of the other. To be clear, here are some differences between the two types of companies. Factory prices are generally lower than those of trading companies.
An export management company acts as a selling agent for foreign manufacturers and sells the goods to local dealers. They earn brokerage from the manufacturing firms by guiding the export prices. Intermediaries, on the other hand, are not manufacturers or importers; they channel the exchange of goods and services and earn a commission for their services. However, importers and exporters both benefit from the services of trading companies.
A trading company does not manufacture the products they sell. Rather, they source them from factories and sell them to their customers. Trading companies are similar to distributors and wholesalers and offer an extensive range of products. Before the opening of China to international trade, these companies were the only way to import products from China. However, a good trading company will also source products from difficult factories, such as spices, and perform quality control.
Trade companies like DGSLink provide access to overseas markets without requiring the start-up costs of a factory. Whether or not a trading company performs these functions depends on the intermediary’s initiative. Export commission agents and merchants handle most of the US export industry. These intermediaries do not provide all services, however. The agents take possession of the goods and work for a commission. The risk of damage and loss remains with the manufacturer.
They can source multiple products from factories
When sourcing multiple products, big trading companies can work with many different factories and categories to get the best prices. They often have lower minimum orders than manufacturers and usually deal with various factory types. Traders also typically do not accept liability for the quality of the products they supply. However, they charge a higher markup and are more likely to disappear altogether than a manufacturer.
While trading companies are an excellent resource for small orders, the negative side of working with one is that they cannot directly contact the factory. They typically source from trading companies because they do not own their factories and instead source from different factories and add a percentage of the cost to the product. However, they can be beneficial for small orders since they can work with many factories without requiring the time and energy of a factory.
Work hard for customers
When we go the extra mile, we are talking about doing things for our customers that are above and beyond what is expected of us. An example would be an extra minute or two spent on the phone by a salesperson to help a customer choose the right product. Or the extra help a customer support representative provides to ensure that a customer does not have to call back. These are all things that we can all use a little more of.
They have a good relationship with factories
If you’re planning to buy Chinese clothes, consider several factors before choosing a trading company. The first factor to consider is the relationship between the factory and the trading company. The latter is the client of the factory, so the sales reps of these companies must be able to listen to the factory manager. In addition, a trading company can help you deal with the factory directly, making communication between you and the factory much easier.
A trading company with a long-standing relationship with the factories is more likely to control the quality of the finished product, making it a good choice for most buyers. Some trading companies even go to the factories to perform product inspections. Other companies bring in a third-party QC expert to ensure quality control. This is better than leaving it up to the factory, which can be time-consuming and costly.
