How can I distinguish manufacturers from trading companies?

Before buying from China, most purchasers will need to take this question into account: Who should I do business with? Shall I purchase directly from manufacturers or from a trading company?

Our answer is “it depends”. Purchasers should choose the right supplier according to their own needs. This point is explained more in our Blog entitled Trading Companies Vs Factories.

Below are some ways to distinguish whether the supplier is a manufacturer or trading company:

1. Browsing supplier’s websites: Usually supplier will clarify whether it’s a manufacturer or trading company in Company Profile. It’s very easy to know in this way.
2. Check contact address: If the company is located on the 2-20th floor of a tower or building in city center, than more likely it is a trading company, if they are located in a manufacturer’s district with just an address more often than not, they are a factory.
3. Check product portfolio and main product lines. Generally speaking, manufacturer specializes in particular products while trading company provides wider product range.
4. Check business scope on the business license.
5. Check test reports or certificates such as CE certificate. Normally the real manufacturer name is shown on such certificates.