Alibaba.com, as a global trade platform, gathers numerous suppliers. When choosing business partners, distinguishing between factories and trading companies on Alibaba.com is crucial. Here are some methods and tips that may be helpful to you:
1. Company Profile and Certifications:
Factories often showcase real production photos,detailed manufacturing processes, and relevant production certifications such as ISO certifications or factory inspection reports.
Trading companies may emphasize their sales channels, market coverage, and partnerships rather than production capabilities.
Some merchants' stores have passed the Gold Product Certification and will display a "verified" badge. If you click on the store’s homepage and see "Custom manufacture," it indicates that the business is a factory or a combination of manufacturing and trading. This certification is the result of an on-site inspection by a reputable authority and is considered to be quite representative.Conversely, if it shows "Multispecialty supplier," it means the company is a trading company.
2. Product Range:
Factories typically specialize in a narrower range of products, often focusing on specific categories or types.
Trading companies tend to offer a broader and more diverse range of products.
The picture above can illustrate this point very well. Obviously, the products in the below picture cover various industries; in fact, it is a trading company.
3. Customization Capability:
Factories usually have stronger customization capabilities, capable of producing goods according to specific customer requirements.
Trading companies may have less flexibility in customization as they often source products from multiple suppliers.
4. Photos and Videos:
On the product details page，Factories may display images or videos of their production facilities, workshops, and warehouses to demonstrate their manufacturing capabilities.
Trading companies generally have fewer such visuals focused on production.
5. Delivery Time:
Factories can typically provide more accurate delivery times since they have direct control over production.
Trading companies may depend on upstream suppliers, leading to less certainty in delivery times.
6. Searching company information:
You can check a company's registered address, registered capital, business scope, establishment date, and street view on websites like Aiqicha, Tianyancha, and Qichacha to preliminarily assess its strength and business situation. This information can help determine whether the company is a factory or a trading company.
By considering these factors, you can more accurately differentiate between factories and trading companies on Alibaba.com, helping you make informed sourcing decisions.
techTongBo (also named: Nanjing TongBo / NJTB) is a Chinese company specializing in the manufacture and sales of vacuum cleaner accessories. We offer replacement accessories for the global market that are compatible with mainstream vacuum cleaner brands and have stronger price advantages.
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