Factory or trading company? How to tell the difference
Both factories and trading companies can be good suppliers. What matters is knowing which one you are dealing with and why.
Practical differences
Factories control production and can customise, usually with higher minimums. Trading companies offer variety and smaller quantities across many factories, with a margin on top.
How to check
- Ask to see the production line, or photos and video of it.
- Ask whether they can change specifications or print on the product.
- A very wide, unrelated product range usually indicates a trader.
Which one to choose?
For many items in small quantities, a trader saves you dealing with many factories. For large volumes or custom products, a factory usually offers a better price and more control.
FAQ
Does a trading company mean lower quality?
Not necessarily. Quality depends on the source and inspection, but a trader adds a link that can raise the price.
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