OEM/ODM Manufacturing
Choosing Between a Trading Company and a Factory Direct Relationship
Trading companies add a layer of convenience and language support, but factory-direct relationships typically offer better pricing and faster issue resolution.
Published 2026-04-01 · OEM/ODM Manufacturing
What a Trading Company Adds
Trading companies can simplify sourcing across multiple factories and offer language and logistics support, which suits buyers early in their sourcing experience or ordering very small volumes.
Why Buyers Move to Factory-Direct Over Time
As volume grows, the trading company markup and communication delay (issues routed through an intermediary rather than direct to the production floor) become harder to justify — most established distributors eventually move to a factory-direct relationship for their core product lines.
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