Bucket 3 · Independent service, not affiliated with Alibaba Group, 1688, Made-in-China, U.S. Customs and Border Protection, the U.S. Treasury, the U.S. Department of Commerce, CourtListener, or any government body.

Overseas Supplier Check Report · Guide

How can I tell if a Chinese supplier is a factory or a trading company?

Read the business scope on the supplier's licence: a manufacturer normally lists production terms such as 生产 (production) or 制造 (manufacturing), while a trading company lists only sales, wholesale and import and export. Then check whether the address is an industrial site, what the company name says, and whether the supplier can show the production line live on a video call.

Checks you can run yourself

  1. Read the business scope in Chinese. Ask for the licence and look for 生产, 制造 or 加工 (production, manufacturing, processing). A scope of 销售, 批发 and 货物进出口 (sales, wholesale, import and export of goods) without production terms points to a trader.
  2. Look at the company name. Names containing 贸易 (trading) or Trading Co., Ltd. usually indicate a trading company. Names with 科技 (technology) are common for both, so this is a hint, not proof.
  3. Check the address on a map. Search the licence address in a map service with satellite view. An industrial park or factory building supports a manufacturing claim; an office tower in a business district suggests a trader or sales office.
  4. Ask for a live video walk-through. Ask to see the production line, the raw materials and a product like yours being made, on a live call you schedule. Ask them to show the licence on the wall or a sign with the company name.
  5. Ask questions only a factory can answer. Ask how many production lines they run, the minimum order per colour or size, the lead time for the moulds or tooling, and which steps are outsourced. A trader often has to check and reply later.
  6. Compare the product range. A factory usually makes a narrow range of related products. A store selling furniture, phone cases and pet toys together is almost certainly trading.

A trading company is not automatically worse

Traders can handle small orders, mixed products and English communication well. What matters is that the supplier is honest about what it is, so you know who controls quality and pricing. A trader claiming to be a factory is the warning sign.

When a done-for-you pack helps

If the licence is in Chinese and you want a written answer, our report quotes and translates the business scope, gives a factory or trading company indication, checks consistency of the name, unified social credit code, address and payee across the licence, store page and invoice, and searches public US import summaries naming the supplier. It is a desk check from documents and public records, not a site visit or a factory audit.

US$59 all-in, one-time.
No subscription and no extra fees. Delivered by email within 48 hours of your order. Covers one supplier in mainland China.
See the Overseas Supplier Check Report · US$59

Questions

Can a factory have trading in its business scope too?

Yes. Many manufacturers list both production and import and export in their scope, because they export their own goods. The useful test is whether production terms appear at all. A licence with only sales and trading terms, held by a supplier calling itself a factory, is the mismatch to question.

Why do some factories sell through a separate trading company?

Some manufacturers set up a separate company, sometimes in Hong Kong, to handle export sales and foreign currency. That can be legitimate. Ask the supplier to explain the link between the two companies in writing and check that the company you pay is the one named on the invoice and contract.

Is a factory always cheaper than a trading company?

Not always. Factories often have higher minimum order quantities and may quote less flexibly on small orders. A trader may get competitive prices because it buys in volume from several factories. Compare full quotes for the same specification, including packaging and delivery terms, rather than assuming.

Sources

Checked 2026-10-26. Policies change, so read the current version before you act.

Contact

Email james@bucket3.ai. We reply within one business day.
Bucket 3 · bucket3.ai, 300 Sheppard Ave W, Unit 101-65, Toronto, ON M2N 1N5, Canada
See all products, refunds and contact.