What Is MOQ (Minimum Order Quantity)?
Quick Definition: MOQ (Minimum Order Quantity) is the smallest number of units a factory will produce in a single order. MOQs exist because factories need minimum production runs to cover setup costs, material waste, and machine time.
Why Factories Set MOQs
- Setup costs: Machines need to be configured, molds mounted, and materials prepared — these costs are fixed regardless of order size.
- Material minimums: Raw material suppliers also have MOQs. A factory can't order 10 meters of fabric if the fabric mill requires 500 meters.
- Efficiency: Short production runs have higher per-unit costs due to changeover time and waste.
Typical MOQs by Product Type
| Product Type | Typical MOQ |
|---|---|
| Custom electronics (PCB + assembly) | 500–1,000 units |
| Plastic products (injection mold) | 1,000–5,000 units |
| Printed packaging | 1,000–3,000 pieces |
| Textiles / apparel | 200–500 pieces per color/size |
| Simple accessories (no mold) | 100–500 units |
How to Negotiate Lower MOQs
- Offer to pay a higher unit price: Factories will lower MOQs if you compensate for their reduced efficiency.
- Use existing molds/designs: Skipping tooling costs makes small orders feasible.
- Order multiple SKUs: Combine different products to reach the factory's minimum production value.
- Negotiate a trial order: Position your first small order as a test with a larger follow-up commitment.
- Use a sourcing agent: Agents often combine orders from multiple clients to meet factory MOQs.
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