Factory vs trading company in China: what to verify

A factory owns the line. A trading company buys from a line (or several) and resells. Both can ship good goods. The risk is depositing with a trader who claimed to be the factory, or with a factory that cannot export in its own name. Sourcing Center checks which one you are talking to during factory verification.

What to ask

• Whose business license is on the quotation, and does it match the floor?
• Can you walk the production line for this SKU, or only a showroom?
• Who issues the invoice and who holds the export credential?
• Where do goods go after packing: their dock, or our Xiamen warehouse?

A trading layer is not automatically a red flag. It is a red flag when it is hidden. 1688 sellers are often traders; the desk can still receive into our warehouse and QC before export. 1688 sourcing.