Many foreign buyers actually prefer to find factories that supply direct supply, so that they can save a lot of expenses, and the factory can give customers the lowest price. The ability to feedback problems is stronger than that of trading companies.
It stands to reason that this form of trade without intermediate links should be more popular with buyers, and there is no need to cooperate with trading companies, so why do trading companies survive so well? Often a dozen people form a trading company to receive large orders? What advantages does it have to attract foreign buyers to place orders?
In the process of international trade, price is indeed an important selection factor, but it is not the whole story. Many buyers only have an approximate control of price. They pay more attention to the company’s development strategy, and even the cost of time is higher than Price, then, what factors attract buyers to trading companies?
To sum up, it is as follows:
1. More variety of products
For a trading company, it will not only sell products from one factory, but will choose many factories to form one or more types of products for sale, and even one product will choose multiple factories and multiple specifications, so that If it is combined for sales, it will have many choices for buyers and customers, and will not be limited to one factory and one product.
For example, a foreigner purchases all kinds of fabrics, such as cotton, linen, silk, woolen, chiffon, woven, knitted, etc., but your factory can only provide cotton, so he has to find other factories all the way. Buying goods, the time and labor costs spent in the middle are not low, enough to offset the benefit of your lower price than the trading company.
If they do not deal with middlemen and trading companies, foreign buyers will have to send their own people to China, and they must send enough people to different places and different factories to deal with their own procurement needs, even if it is Going to the exhibition to find the right products may not be able to find the right products. This kind of operation method is far from the cooperation of a trading company with a complete range of products.
2. The trading company has fast delivery and small MOQ
The trading company is not the agent of the factory, but an independent company organization. After the trading company receives the goods from the factory, it usually has its own warehouse to store it, and then slowly digest these stocks.
Generally, customers who look for a factory will not buy the goods you have produced, but will ask you to produce the products they require, and the factory will generally wait for the customer to place an order before producing the goods, not the production. Goods are waiting for customers to buy ready-made.
For some small customers, the MOQ of a certain product will not be too high, but the categories will be very complex, often failing to meet the factory’s MOQ requirements, and it is not cost-effective to calculate the cost from production to transportation, so there are often Customers with small orders cannot agree, so customers will choose to cooperate with trading companies. After all, trading companies must sell more than one product to customers, often two, three or even a dozen kinds of products are sold together. , they can make money.
Another problem is the cost of time. Many trading companies are looking for cooperation to buy spot goods. They need to buy products quickly, instead of waiting for your factory to produce slowly. Time is money and profit for them.
3. Buyers buy products and services
Now we all know that price is not the determining factor for buyers to place orders, so what else should buyers value? Serve! Yes, buyers prefer that their partner is a company with thoughtful service, and communication will be much smoother.
Trading companies are between customers and factories. One of the most important aspects of their survival code is service. Excellent trading companies can handle the relationship between factories and customers well. The factory is a place where only products survive. It is not very important. Many factories should also lose customers because of the contradictions caused by their service attitudes.
Trading companies are not the kind of suppliers who only consider benefits and are unwilling to pay more. For example, factories will not start production until they see an order. It is different. For customers who often cooperate and need to produce, they will let the factory produce part of the goods in advance. When the customer urgently needs the goods to place an order, they only need to prepare another part of the goods, but transfer part of the risk to themselves. , but maintained a long-term customer.
Sometimes even if the profit is very small, the trading company will take customers to find factories one by one until they are satisfied, but few factories are willing to patiently receive customers whose order quantity is lower than the minimum order quantity.
4. Trading companies will reduce risks for customers
We all know that the products produced by the factory are not necessarily in line with the customer’s wishes. Sometimes the quality cannot meet the customer’s requirements, so we need to spend time and labor costs to adjust, even if the adjustment is not necessarily able to meet the requirements of the customer. the level of customer satisfaction. At this time, the buyer will face the problem of finding a substitute, which will seriously slow down his trade process.
However, the handling of trading companies is much more flexible. Generally, trading companies will not only cooperate with one factory. There are many factories that cooperate with a high degree of selectivity. If there is a problem or inappropriateness, you can completely change to another factory. What problem will not fatally affect the business of the trading company.
Another point is that the trading company is not the agent of the factory, but it can become the agent of the buyer. What kind of products and factories the buyer wants to find in China can be done through the trading company, which is equivalent to that in China. With one office, long-term cooperation is convenient and labor-saving.
5. Customers are shared
We often talk about sharing. Most people don’t seem to care much, but for trading companies, some customers are really introduced. Because of their thoughtful service and strong ability to deal with problems, general customers If you think this trading company is very good, you will introduce it to your friends in the same industry.
Friendship is also a major way for trading companies to expand their business. Many trading companies use friendship to carry out business and develop. Not all customers are interests, but many come from emotional relationships. Since they are friends, they will do business. Take it easy. Some buyers who have a relationship with a trading company, even if someone who knows your factory and is familiar with your factory, does not like to find you directly, and still has to operate through a trading company.
6. More professional business communication skills
It does not mean that knowing the product is necessarily a professional business. Now the factory also likes to participate in various exhibitions and sells it on various websites. It seems that there is no need to do business through a trading company, but in fact, the factory that understands the product is not necessarily Can do sales.
Communication is a big problem. The factory is not a professional salesperson, so there is a big flaw in language communication. Many foreigners do not speak English well. That’s more difficult.
The talents equipped by trading companies are far superior to those in factories, not only in terms of service attitude, but also in foreign language professionalism. The sales staff equipped by foreign trade companies still account for a relatively large proportion of minor languages. For buyers For example, being able to hear one’s own native language is more likely to generate a sense of intimacy.
7. Manufacturers are immature in the face of terminals
Now B2B website sales are becoming more and more normalized, but the form of direct-to-terminal sales by manufacturers is still immature. From the beginning of trade, middlemen have always been a normalized existence, and they are not so easily replaced. Conceptually, the existence of middlemen is still deeply rooted.
Moreover, the reason why trading companies exist is that they must have many unique development channels, which can effectively develop customers and maintain the existence of trading companies.
To sum up briefly, as a trading company, if you want to do a long-term and long-term business, you should store a wide variety of products or cooperate with as many factories as possible. Understanding the product is the foundation, and the service must be thoughtful and multilingual talents are reserved.
YIWU AILYNG CO., LIMITED is a good choice!
Post time: Feb-11-2022