How do I get a factory-direct quote instead of a trading-company quote?
Short Answer: Ask for EXW, Verify the Licence, and Request Production Evidence
To escape the trading-company mark-up, ask for an EXW (ex-works) price, verify the supplier's business licence on the official GSXT registry, and request production photos or a live video call of the actual workshop. A trading company will resist all three; a real factory will provide them without hesitation.
Why Traders Quote Like Factories
About 70% of Yiwu booths are trading companies. They list 'factory price' because they buy from a factory and resell, so their quote already carries a margin you never see. The fix is to prove the link between the seller and the workshop.
The Three Proofs a Real Factory Gives
Verify on GSXT (Free, No Login)
The National Enterprise Credit Information Publicity System (gsxt.gov.cn) lists 180m+ entities for free. Check that company status reads 存续 (active) and walk away on 注销 (cancelled) or 吊销 (revoked). Cross-check the 18-digit Unified Social Credit Code on the licence against the registry.
Open gsxt.gov.cn
Search the exact company name from the licence.
Read the status
存续 = active. Anything else = stop.
Match the credit code
18 digits must equal the licence.
Check the address
Should be a real factory site, not a high-rise office.
Case: The 'Factory' With No Workshop
A supplier claimed factory status but refused a live call and gave an office-park address on GSXT. A reverse image search of their 'factory' photos returned three other 'factories'. We sourced the true manufacturer and saved 19% plus removed the scam risk.
Red Flags a Quote Is Trader-Built
- Only FOB/CIF offered No EXW means you cannot see the factory base cost.
- Stock-footage video Generic clips that are not a live walkthrough.
- Address mismatch Licence address differs from where goods are made.
How RND SOURCING Proves Factory Status
Before we send a quote we verify the supplier on GSXT, request live workshop video, and where possible visit the line in person, our desk is walking distance from Yiwu International Trade City. We only pass a factory-direct quote when the licence, the address and the production evidence all line up. We are not an accredited auditor, so for high-value orders we book an independent inspection too.
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