Who best suits your trade purposes: factory or agent?
Author: Robert
Depending on your unique needs, one might be preferable to the other

Another question often asked by importers is whether they should deal directly with the manufacturer (actual producer of the products) or whether they should go through an agent or trading company. The pros and cons for the buyer are detailed below:

Factory

Pros: 

  • Lower cost by going straight to the source
  • Better chance of communicating your product requirements, especially if you have custom needs

Cons:

  • Possible lack of exporting experience
  • May insist on MOQ (Minimum Order Quantity)
  • May not be able to handle the exporting paperwork and /or logistics

Trading Company

Pros: 

  • Can handle a multitude of different products and requests
  • Can usually avoid MOQ
  • Can usually do quality inspection on your behalf
  • Can arrange paperwork and/or logistics

Cons:

  • Cost maybe be higher
  • Not as familiar with specific product questions

 

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Re: Who best suits your trade purposes: factory or agent?
by ashish_sukhadia316 on 01 Apr 2009 06:16
if you are new startup firm,,,,then agent will suit as you dont have good knowhow about the product.


but if you are all ready well set in the international trade then factory will be prefered one as you know all the tricks of the trade[em1]

Re: Who best suits your trade purposes: factory or agent?
by ashish_sukhadia316 on 27 Apr 2009 22:44
Really useful information.

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