Understanding MOQ: The Logic Behind Minimum Order Quantity and Coping Strategies

What is MOQ?

MOQ stands for Minimum Order Quantity, which means the smallest quantity of goods that a factory is willing to accept for an order. For example, if a cup factory tells you that the MOQ is 500, it means: you must order at least 500 cups for the factory to accept your order.

Why is there MOQ?

This is a question often asked by procurement beginners. In fact, there are usually several reasons behind MOQ: production startup costs, raw material procurement restrictions, and factory production scheduling.

Is MOQ non-negotiable?

Not necessarily! Although every factory has a default MOQ, it is not a completely unchangeable rule. MOQ may be reduced under the following circumstances: for example, the factory happens to have ready-made inventory; you are willing to accept existing packaging, colors, or styles; you are a first-time small order trial; you are willing to pay a slightly higher unit price. However, it should be noted that if your order quantity is really small, the factory may charge additional sampling fees, mold fees, or offer higher prices.

How to determine if MOQ is suitable?

For small businesses or just-starting sellers, MOQ is a very important cost threshold. You can ask yourself a few questions: 1 Can my budget afford this quantity? 2 How long will it take me to sell all these goods? 3 If I can't sell them all, can the warehouse store them? 4 Are there other products with lower MOQ that I can try first?

How can we help you?

If you purchase through Factory Explorer, our team can help you: screen factories suitable for small batch purchases, no longer being rejected because the MOQ is too high; communicate and coordinate MOQ and sampling issues to improve bargaining efficiency; identify suppliers with ready-made inventory, allowing you to try before you buy, reducing trial and error costs; explain professional terms in a simple and clear way, making foreign trade procurement no longer difficult to understand.

We know that it is not easy to start on the procurement path from scratch, but you are not fighting alone, Factory Explorer is your partner in exploring the Chinese supply chain.