Lara GuevaraSupply Chain expert (Product and Service)

Advantages of working with traders that you didn't know exist

6 Sept 2025

Watch on YouTube

Short YouTube monologue explaining three situations where working with traders makes sense despite common advice not to: (1) manufacturers lacking sales teams or English skills rely on traders; (2) traders can consolidate volume across brands to secure lower prices; (3) traders’ established relationships with manufacturers can obtain better prices, payment terms, MOQs, and lead times for new partners. The speaker frames this as roughly 20% of cases where traders are useful.

They say don't work with traders. And I would say 80% of the time that's true. But what's the 20% for? There are three reasons. Number one, a manufacturer, they don't have sales team, they don't speak English, they rely on traders to sell their products. So you don't have a choice. Even if you connect with them, they will not respond to you. Number two is when the consolidation is a lot bigger than yours as an independent. So for example, you're ordering 5,000 pieces, but this trader handles five brands, 5,000 pieces each. So that 25k quantity has a lower, lower price than the 5k quantity. Number three, great relationship that they have with a manufacturer coming in as a new partner, you don't have that much leverage. They will probably give you this and that. But without great relationships, they cannot give you a lot of things because that trader has a great relationship with them, they can get better prices, payment terms, MOQ and lead that, those are the three things that you have to consider.