Supplier due diligence
Factory vs trading company: the label matters less than the proof
Factory direct sounds sexy. A competent trading company can still be the better choice. The dumb move is believing either without evidence.
Factory Owns production
Trading company Coordinates suppliers
Agent Represents buyer or seller
Proof Docs, visit, references
Search intent
Help buyers evaluate supplier role and route.
What to ask
The answer should be specific, verifiable, and boring. Vague confidence is not evidence.
- Business license name
- Factory address
- Production photos
- Export references
- Who handles QC and packing
Before you move forward
- Ask who owns production.
- Match company names across documents.
- Request factory video or third-party audit.
- Confirm who is liable for defects.
Common questions
Is factory direct always cheaper?
No. A factory can be cheaper on repeat volume, but a good trading company may reduce coordination mistakes on mixed orders.