5 Ways to Verify Whether Your Supplier is a Factory or Trading company

1. Check the factory video

The easiest?way?is check if their their company video with company name or not,

many trading companies go to a factory take a video and tell this is their factory, but they will not show the main gate with the company name, so if you can't find a main gate with their company name in the video, I am sure they are a trading company only.

2. Check the Business License

The most important part is “Business Scope” when checking supplier’s business license. This is the easiest and most direct way which your supplier cannot counterfeit. A factory’s business scope must include words like “manufacture or produce”, which a trading company’s business scope won’t have.

3. Check the Products Catalogue

A factory usually is specialized in one or several kinds of products, if there are lots kinds of products in your supplier’s catalogue, then it’s more likely to be a trading company.

4. Check the ISO 9001 Certification

Not every factory has ISO 9001 Certification, but most companies who have this certification are factories because the trading company has no need to have it.

5.Ask to visit their factory

If the supplier is truly a factory interested in doing business with you they would gladly welcome your visit.?In my years of sourcing, I’ve never been turned away about a legitimate factory that’s interested in doing business with us.?They have nothing to lose and everything to gain by hosting you.

However, if they seem evasive about the factory or if they make an excuse?that the factory is very far away then this hints that they are a trading company, probably?with something to hide. In other words they don’t want to reveal the true identify of the factory to you, which is not a trustworthy way of doing business.