Factory or Trader? 5 Quick Checks From a 15-Year Sourcing Vet

I’m Jason. 15 years in this game, now running my own wood packaging factory in Rizhao. If you want to know whether a supplier is a real factory or a trading company in disguise, here’s what you actually do — no fluff.

1. Ask for the business license.

A factory’s scope says “manufacturing.” A trader’s says “trading.” Real factories don’t hide it. If they make excuses, move on.

2. Look at their product range.

A factory does one thing deep. A trader sells everything. If a “pallet factory” also offers T-shirts and electronics, you’re talking to a middleman.

3. Request a live video walkthrough.

Not a pre-recorded tour. Ask them to walk onto the production floor — right now. Factories can do this within 10 minutes. Traders will stall.

4. Test them with a technical question.

A factory will push back: “That design won’t hold the weight.” A trader will say “Yes, no problem” and check with someone else. Fast, vague agreement is a tell.

5. Check whose name is on the certifications.

If the IPPC stamp or ISO cert shows a different company, you’ve got a layer between you and the real source.

One last thing.

The real question isn’t “factory or trader.” It’s “will this person pick up the phone when something goes wrong?”

I tell my clients: “If there’s a problem, you talk to me. Not a chat bot. Me.”

Need fumigated pallets, fumigation-free crates, or custom wood packaging? Let’s talk. I’ll show you the workshop floor live before you spend a dollar.

— Jason