Sourcing guides often say "always buy from the factory". The reality is more specific: what changes is not honesty but the shape of the cost, the control and the risk.
A trading company buys from several factories and consolidates: one order can cover several models, one payment, one set of export documents. Its margin is the difference between factory price and your price.
A factory makes one product family deeply. Its advantage is engineering depth, tooling control and the ability to change the specification itself.
| Dimension | Trading company | Factory |
|---|---|---|
| Product range | Wide, multiple families | Deep, one family |
| Mixed-model orders | Easy | Often not possible |
| Custom engineering | Relayed to the factory | In-house |
| Unit price | Includes margin | Lower at volume |
| Response to QC problems | Coordinated by the trader | Direct with production |
| Small first order | Usually easier | Set by tooling |
For a distributor testing several categories at once, a trading company is often the lower-risk start. For a brand that will scale one product, the factory route pays off.
| MOQ ladder | 200–499 pcs US$165/pc · 500–999 pcs US$130/pc · 1,000+ pcs US$95/pc |
|---|---|
| Sample | 5 pcs · 7–14 days |
| Production | 25–35 days after customisation approval |
| Certificates on file | EFW526022843-CG-02+REV 1 · CTA25030700203/+205 · XDX50238736101701EC |