Sourcing glossary
Trading company
Also known as: Trader, Sourcing company, 贸易公司
A company that buys products from factories and resells them to buyers, adding a margin and usually handling communication and export paperwork, without making the goods itself.
In China sourcing, a trading company sits between you and the factory. Its registered business scope usually covers sales, wholesale or trade rather than production. Many present themselves as manufacturers on B2B platforms, so checking the business license is the only reliable way to know.
Trading companies are useful for small, mixed orders, product testing and suppliers that don't sell abroad directly. The trade-off is a higher unit price and less visibility into who makes your goods. See factory vs trading company for how to tell them apart.
Related terms
Guides that use this term
Private label
How to Negotiate MOQ with Chinese Suppliers
Why Chinese factories set minimum order quantities and practical ways to lower them: stock colours, shared materials, trial orders, mixed SKUs and how to ask.
Updated 2026-09-18 · 5 min read
Platforms
How to Verify an Alibaba Supplier Before You Pay
Check an Alibaba.com supplier step by step: what Verified and Gold Supplier badges mean, business license lookups, factory vs trader signals and red flags.
Updated 2026-09-15 · 5 min read
Suppliers
China Manufacturing Hubs: Which City Makes What (Cluster Map)
A verified map of China's industrial clusters by product: where toys, socks, shoes, eyewear lenses, appliances, ceramics, furniture and hardware are made.
Updated 2026-09-14 · 6 min read
Fairs
Canton Fair Guide: Autumn 2026 Dates, Registration and Tips
The 140th Canton Fair runs in three phases from October 15 to November 4, 2026. What each phase covers, how the buyer badge works, and how to prepare and follow up.
Updated 2026-09-13 · 6 min read
Platforms
1688 vs Alibaba vs Taobao: Which Platform Should You Buy From?
1688, Alibaba.com and Taobao compared for overseas buyers: who each serves, language, MOQ, prices, payment, buyer protection and shipping abroad.
Updated 2026-09-09 · 5 min read
Compliance
How to Find the Right HS Code for Products Imported from China
How HS codes work, how to classify a product step by step with official tariff tools in the US, EU and UK, and why your supplier's code may be wrong.
Updated 2026-09-08 · 7 min read
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