Importing toys from China has always been a hot subject to clients who newly start a toy business.

Choosing a company to help with their business is fatal at the beginning of the business.

It can lead to a success of business.

It can also lead to a failure of business.

“What could I do to correctly choose a toy supplier?”

This is the question which is faced by many importers.

Before looking for an answer to this question, you must know the difference of the toy companies in China.

The knowledge in this article will help you to clearly know, what’s the difference between them.

For businessmen who want to import toys from China, there are 3 types of Chinese companies you will finally encounter.

This article talks about the difference of the companies for your reference..

It doesn’t matter how many companies you find on the internet or in China-held fairs, their nature just belong to the 3 types of companies written in this article.

I hope this article will help you when you are looking for a toy supplier in China.

Besides, I am writing one more article about how to import toys from China, this is mostly an instruction article which shares toys-importing knowledge, it will come out soon, but as I want to write it more thoroughly, so it takes much more effort to finish it, please stay tuned.

This article also helps to improve your knowledge for importing toys from China.

When you know what is the difference between the toy companies, you will know how to judge your supplier.

Preface: This article is written based on the author’s experience about toy companies in mainland China, it doesn’t apply to companies worldwide.

Types of Chinese trading Companies:

1:Sourcing companies(for all kinds of products)

Actually, when a trading company trades all kinds of products they call themselves a sourcing company.

Sourcing companies were booming in China around 2003.

The noontide of the establishment of sourcing companies was around 2010.

Advantage:

Sourcing companies can help its clients source almost everything in the market.

Disadvantage:

Usually they aren't professional enough for the products they source.

The product range is too wide to learn for sourcing companies.

No one is professional in everything.

Remark:

Before the year of 2010, most sourcing companies felt easy to do business with their clients.

They could even sell out everything, clients also felt it was good to work with a scouring company.

It was because of the 3 reasons below:

1:At that time Chinese products were cheap.

2:Price wasn't clear in market.

3:it was relatively difficult to find suppliers.

As time goes on, the three reasons listed above were all gone.

That's why the number of sourcing companies has declined sharply in comparison with the past.

Most sourcing companies focused on a certain industry to provide professional service later on.

It was because clients were becoming more and more professional, if they don't focus and become professional in a certain filed, they will be out of business as every industry is now very competitive.

Running an all-ranged sourcing company is likely a best choice for young men with English speaking background in China, it's easier to get started and their potential clients are those who purchase everything.

If you need to purchase everything at one time, and you don’t have enough time to look for different suppliers, that’s a good choice for you to cooperate with a sourcing company.

As I know, there are many sourcing companies in Yiwu, you could ask for local people to get one when you arrive in Yiwu, or you could get several

2:Trading company(focus on one industry)

This kind of companies focus on one business field like electronic devices, plastic toys etc.

They have their own advantages to compete in the market.

The common advantages:

1:Professional knowledge

2:Service

3:influence

Let’s mainly talk about the “Influence”, I am sure most of you aren’t sure about what influence is:

Some trading companies have their influence over factories they frequently cooperate with, Some trading companies even have a very strong influence in an industry.

This kind of trading companies normally have a lot of clients, some factories mainly rely on them to make a living, they are capable of pricing a product and arranging a factory to produce it.

For instance: It’s just like a theory of Group buying, when trading companies know that there are 100 clients looking for one product, they centralize the demands and choose a factory to produce, so that the price becomes cheaper so that they have the advantage to compete with other suppliers.

a factory may sell a product to small clients at 10 dollars.

A trading company who regularly cooperates with the factory may get it at 8.5 dollars.

Then a trading company could price the product also at 10 or 9.8 when they sell them to their clients, so the interest between them doesn’t conflict.

Trading companies are service-oriented.

That’s why trading companies survive in the market and some big clients choose to cooperate with them directly.

But you have to make sure that your trading company is professional, an unprofessional trader will leave you with bad impression about all trading companies.

3:Trading companies with a manufacturing background.

This type of company is the best among the 3 types of companies listed here.

Because they are a manufacturer and a trader.

They source from factories when a product which clients look for isn’t worth producing themselves, sometimes it’s because of the quantity the client needs is less.

They arrange to produce it when a product which clients look for is worth producing, mostly it’s because the quantity is large, so they choose to produce it themselves.

It’s because they are capable of calculating the manufacturing cost, so the product they source is normally with a reasonable price and stable quality.

The other main issue is about the QC among the 3 types of companies

The ranking is

1: Trading companies with a manufacturing background.

2: Trading company

3: Sourcing companies

Never believe a sourcing company can check a product perfectly with their own team, there are too many products to learn for them.

Unless they pay for a third-party inspection company to check it, but as to small orders, that’s totally impossible.

We hope now you clearly know how to choose your supplier for importing toys and any other products produced in China.