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  • Jayiesh Singh

How do I know it's not a trading company?

Updated: Feb 24, 2020

If you’re sourcing a product from China, this is a question you MUST answer.

Trading companies posing as factories stifle the growth of your business.

Think about it, even 50 cents per item on a 5,000 quantity order is $2,500. Or look at it this way: a 5% "trading company tax" put on a $50,000 order is $2,500. From my experience, this is being very conservative. Let me explain.

Trading companies always work with the cheapest supplier possible in order to boost their margins. They will send you samples from one company, then switch to another as soon as your production increases. Any savings they get by negotiating a better rate with the new supplier doesn’t get passed down to you. And you have no idea whether these suppliers are reliable, certified, and can provide good quality. What’s even scarier is often times the trading companies don’t either.

Instead of working to get you quality products, trading companies spend a lot of time trying to hide their suppliers. This extra link draws out already slow communication and introduces a broken telephone effect. This strains your supply chain, causing simple quality control corrections to take weeks instead of days to fix.

If you’re not careful, this can go on for months before you realize you’re sourcing from a trading company. And unfortunately, some businesses never do.

But wait, there’s more...

There are trading companies that go to extreme lengths to get their certifications. Some rent factories for tours, or simply plagiarize photos while claiming them as their own. And the real factories are just happy to have another revenue stream, so they just sell to trading companies without concern.

Long story short, if you don’t know you’re dealing with a trading company, don’t worry—it’s not your fault. To properly vet a supplier takes a lot of time and effort. Checking the company history, getting 3rd party verified factory inspections, spending weeks communicating with salespeople on completely different time zones...

And it only gets more intense and more critical as your business starts to scale. If you want your business to thrive, you need to spend the time to vet a quality supplier.

But what if there was a faster, easier way?

Hi, my name is Jayiesh Singh and I’m one of the Co-founders of Envest.

I have spent the last decade developing technical products spanning from the mundane up to highly complex commercial offerings. So I am familiar with all stages of a product’s life-cycle from design to distribution.

I help companies of all sizes scale their business by connecting them with world-class suppliers. We have contacts that span the entire globe. I have personally flown across the world many times to conduct factory tours and analyze supply chains first hand. And through decades of experience, my team and I have carefully curated a network of quality suppliers in Mainland China.

We have developed close relationships with hundreds of suppliers and factory owners. This means our team is in constant communication with people on the ground in China, ensuring that quality stays high and everything runs smoothly.


If you would like to know how I can help you save money without sacrificing quality, then click this link to learn more.

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