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Export House vs Factory vs Trading Agent: What You're Really Buying From Each

November 10, 2026
3 MIN READ
2 diagrams
Export House vs Factory vs Trading Agent: What You're Really Buying From Each
In this article
  1. The three models
  2. Where each one is the right choice
  3. Where Anabyn sits
  4. Five questions that show which you're dealing with
  5. Warning signs
  6. Read more

Short answer: the useful question is not "are you a manufacturer?" It is "who is responsible if the goods are wrong, and whose name is on the export documents?" A factory and an export house are both accountable sellers. A commission agent usually is not.

The three models

Who you are really buying from
One product, big volume
Factory
Makes in its own plant
Liable for quality
Often refuses small orders
Several products, one order
Export house
Runs production through specialist units
Exporter of record, liable for quality
Small runs usually possible
An introduction
Trading agent
Does not make the goods
Takes commission
Rarely liable
FactoryExport houseTrading or sourcing agent
Makes the goodsIn its own plantThrough specialist units it managesNo
Your contract is withThe factoryThe export houseOften the factory, agent takes commission
Exporter of recordFactoryExport houseUsually someone else
Liable for qualityYesYesRarely
RangeWhat that plant makesSeveral product types on one orderWhatever it can find
Small ordersOften refusedUsually possibleVaries

Where each one is the right choice

  • A factory suits a large, steady order of one product. You get the plant's best price on what it is built to make.
  • An export house suits a buyer who wants towels, sheets and robes on one order, in smaller runs, with one party answering for all of it.
  • An agent suits a buyer who already knows which factories they want and needs someone local to follow up.

Where Anabyn sits

One accountable party in the middle
You
One contract
One invoice
One shipment
AnabynSpec, checks, export
Specialist units
Yarn
Weaving
Dyeing and washing
Stitching
Embroidery and labels

We are an export house. Each stage of your order, from yarn to stitching and labels, runs at a specialist unit that does that one job. We own the spec, check the goods at every handover, and ship as exporter of record. If something is wrong, you deal with us, not with a unit you have never heard of.

We do not own the plants, and we say so. What we own is the responsibility.

Five questions that show which you're dealing with

  • Whose name will be on the invoice and bill of lading? It should be the company you are talking to.
  • Whose bank account do I pay? Same company, same name.
  • Who inspects, and can I have the report?
  • If the bulk is off-spec, who fixes it and who pays?
  • Can I see my order in production? A real operator can arrange it.

Warning signs

Be careful if the company name on the bank details differs from the name on the quote, or if nobody will say who is liable. More in red flags in a supplier's first email.

Read more

Our longer comparison of direct factory versus trading company covers pricing in each model. Check our registrations on the verification page, then ask us for a quote.

Share this article

#Supplier Types
#Export House
#Factory
#Sourcing Agent
#Due Diligence

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Dr Abin Babu

Written by

Dr Abin Babu

Founder & Chairman, Anabyn Global Ventures

Anabyn exports hotel and home linen from Kerala, India. These guides come from the questions buyers ask our desk. About the team

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