Why do some companies not order products direct from manufacturers?

[stevenuk]

I am a sourcing agent and work for some American and British trading companies. They get orders from their customers and then they purchase the products from manufacturers in China. I am wondering why their customers do not purchase products direct from manufacturers in China?

 

[Marcus.S]

It's more safe and some people are willing to pay the extra money to get their goods without any problems. Less responsibility for them, avoid risk of fraud, to purchase goods from China is not a very easy thing to do (If it would be easy, we wouldn't see that many people and companies offering import services/help from China).

A lot of problems may arise, especially because of communication problems (Chinese suppliers often say that they have understood your preferences, but in fact they have not because they are afraid of losing face when asking several times). I read an article in NY-times that American companies have problems with culture clashes in China. As the employees don't dare to tell their manager when problems occur, they just let it go, and as the time goes on it will be more costsome to fix the mistakes. When westerners are doing business, they are more aggressive and can make their own conclusions, in China they have a more collective approach and like to be conducted.

I have talked with so many people in Europe that are very suspicious and don't feel safe with import from China, some have been scammed and lost a lot of money just because the supplier is not even existing.

Some people are really skillfull, I know a case where some guys even had made their own website for tracking the gods. That's advanced stuff.

 

[BLintl.]

Sometimes it is easier to pay a local trading company and reduce your risk. If there is a problem with the product it is easier to claim from the local trader rather than from a Chinese supplier.

It often happens that after some time the importer sees that the business with the Chinese supplier goes smoothly and he will try to bypass the trader and get in direct contact with the exporter.

 

[firefoxe]

i learn more ideas from this post.i know why the direct buyers are unwilling to place orders to factory.

Frankly a few Chinese supplier make some bad actions that damage Chinese image in the world.but most of exporters in China are honest.otherwise there are not largely Chinese products which are exported to all of the world.these prove most of factory in China own professional dedication .

at the begining of trade i believe both of importer and exporter should build business relations step by step.once the business goes smoothlly ,the importer may call on the factory in China.you'll find Chinese are enthusiasm and they cherish every clients.as i know ,clients place orders to me and i must seriously fulfil every orders to gain their trust.it's the only way i develop and expand my factory.

as to payment term ,both of importer and exporter can choose safe term such as L/C or others.

i wish more buyers can trust me and understand me.as i'm factory,i believe my prices are well competive.

thank you!

 

[elecpack]

In some degree,i think this case would happen in the whole world.if both of the importer and the exporter can't trust each other at the beginning of the business,they would build the relationship. Nowadays,a lot of liars train to make the people belive them and cheat the money,kind of this case happened every day in every palce,no just in China.So,when you wanna to build a business relationships with others,pls make sure serveral times,it's better for you ..

 

[andygambles]

Same reason you buy your tv from a UK company rather than direct from the LG or Samsung factory.

 

[MASSEY]

They probably don't buy enough to get a discount. It's cheaper to go to the middle man than direct to the source when you don't order enough units.

Also a lot of companies buy the rights to distribute products, so if they were to go direct to the source they would point them elsewhere. Depending on what the products are.

 

[vivin_johnson]

Manufacturers fix their energy in production, and exporting agent fix their energy in services. They are more professional in their own fields.

 

[Iranda]

Working through agents is better since they will be able to ensure quality and other terms

 

[firefoxe]

Manufacturers fix their energy in production, and exporting agent fix their energy in services. They are more professional in their own fields.

we are not only manufacture but also exporter.i'm strange why direct supplier can't be trusted.

 

[BLintl.]

Usually manufacturers have a better financial situation so they should have money to conpensate a possible claim. It may be difficult to claim from a small middleman.

 

[alxooi]

i learn more ideas from this post.i know why the direct buyers are unwilling to place orders to factory.

Frankly a few Chinese supplier make some bad actions that damage Chinese image in the world.but most of exporters in China are honest.otherwise there are not largely Chinese products which are exported to all of the world.these prove most of factory in China own professional dedication .

at the begining of trade i believe both of importer and exporter should build business relations step by step.once the business goes smoothlly ,the importer may call on the factory in China.you'll find Chinese are enthusiasm and they cherish every clients.as i know ,clients place orders to me and i must seriously fulfil every orders to gain their trust.it's the only way i develop and expand my factory.

as to payment term ,both of importer and exporter can choose safe term such as L/C or others.

i wish more buyers can trust me and understand me.as i'm factory,i believe my prices are well competive.

thank you!

firefoxe, what's your factory goods ?? trading house or manufacturer ??