Buyers always want to buy directly from manufacturers. So what is the value of middleman / trading company? Under what circumstances will buyer want to deal with middleman? Are there any differences for different products?

Replying to [tomorrowneverknow]:I source different products for an Australian customer.Most products are from factories which don't have export licence.so the prices are cheaper from factory already exprot goods by themself.you see it's impossible for them to offer cheap price for middle man to compete with themself.but those factories no export licence will offer better prices.
the Australian customer usually buy several different kinds of products to be shipped by full container,so I calculate the volume of each products and tell him if there is still some space for more goods or have to reduce some quantity.
Check factory before order and check goods before shipment.
It's good to client I think if he is too busy to arrange all of these.

Quoting from [Egernia]:


In my opinion much of the value of middlemen depends upon the buyer.


If you are an expert at what you are buying and you have a good deal of experience with the quality issues etc involved with the products that you buy then a middle man is going to be of less value to you.


If you know the prices for the products that you are buying well such suppliers know that they are dealing with an expert in that field then again a middle man is going to be of less use to you.


If you are buying in volume and/or have your own forwarder to assist with the shipping then again you don’t need a middle man as badly as some others may.


If you speak the language that the suppliers use then that is also a reason that you may not need a middle man. Yes most suppliers on Alibaba do have English speaking staff but in many cases their English ability is lacking. Speaking with the girl or guy in the sales office is one thing, but how do you deal with a claim through the boss if you don’t speak his language.


If you regularly visit suppliers and make it a point to verify all new suppliers by at least making an initial visit then you can probably do without a middle man.


If you are able to do a pre-shipment inspection or have the money to pay an expert inspection company to do this for you then you probably could do without a middle man.


However if you can’t meet all of the above criteria then perhaps a middle man is worth consideration.


Why not use a middle man? I guess that there are two common reasons. One is the belief that you can get a better price by dealing with the factory direct. The other is the belief that by dealing with the factory directly you will get more precise information as it will be first hand rather than third hand. Personally though I don’t believe that either of these two situations are necessarily true by cutting out the middle man. Yes it is possible that things could go better but it is also possible that they could go a lot worse. You only have a little to gain but a lot to lose. I think that you only have to look at the fact that a lot of the big retailers actually choose to only deal with middle men that you get an appreciation of there being a reason. Any of these retailers could contact factories direct and probably get the very best possible attention from the factory. Many of them have tried this over the years, but they nearly always end up back with middle men.


In the interests of transparency I am the chief representative of a foreign buying group here in China, and while we are not really a trading company, we could certainly be classified as middle men so perhaps I am biased on this issue. I really do believe however that the advantages of going it alone are far outweighed by having on the ground assistance.

Incidentally, our company happens to be looking for a middle man in China.  Someone to inspect the products for quality and seeming authenticity before the items are paid for and shipped.

Quoting from [raymondprose]:

Incidentally, our company happens to be looking for a middle man in China.  Someone to inspect the products for quality and seeming authenticity before the items are paid for and shipped.

You may list what kinds of products you are going to import.

As for choosing a middleman, in my opinion, the best is to choose the one that are in the right products like you, that would be more professional to your products. not everyone is specialized in all products.