Not every supplier who claims to be a factory is one. The difference shows up in price, quality control and lead time — here is how to tell them apart before you commit.
Why the Difference Matters
Trading companies add margins on top of factory prices, and they have less control over production quality and schedule — the factory you never meet decides what you receive.
For trial orders, a good trading company can work. For repeat volume, OEM customization and consistent quality, a direct factory relationship is almost always stronger.
Eight Signals to Check
- Factory: shows live production video and accepts scheduled factory audits.
- Trading company: shows only office photos or warehouse footage.
- Factory: discusses tooling, production lines and QC checkpoints in detail.
- Trading company: talks mainly about price, samples and 'other factories'.
- Factory: certificate names and model numbers match across documents.
- Trading company: certificates are often generic or brand-level, not model-level.
- Factory: stable lead times with a production schedule you can verify.
- Trading company: lead times that shift when 'the factory' changes.
Run the Full Verification Checklist
Our factory verification guide covers the complete due-diligence process — including how we invite the same scrutiny.