If you have ever contacted a factory and been told they require a minimum of 1,000 or 5,000 units, you have run into MOQ — Minimum Order Quantity. For first-time product founders, MOQ can feel like a wall. But understanding why it exists puts you in a much stronger position to negotiate.
What Does MOQ Mean?
MOQ is the smallest quantity a supplier is willing to produce or sell in a single order. It applies to manufactured goods (a factory's production run), raw materials (a fabric supplier's roll quantity), and components (an electronics supplier's reel quantity). Every level of your supply chain has its own MOQ.
Why Do Factories Set MOQs?
Factories set MOQs because manufacturing has fixed costs that need to be spread across enough units to be profitable:
- Tooling and setup — custom moulds, dye cuts, screen printing setups have one-time costs regardless of quantity.
- Material minimums — suppliers often sell raw materials in minimum quantities themselves, so the factory must buy a certain amount anyway.
- Labour efficiency — setting up a production line for 50 units versus 500 units takes roughly the same time.
- Administrative overhead — quality checks, shipping documentation, and invoicing take the same effort for small and large orders.
Typical MOQ Ranges by Product Type
- Apparel & textiles: 100–500 pieces per style/colour
- Electronics & gadgets: 500–2,000 units
- Plastic injection moulded products: 500–1,000 units (plus tooling cost)
- Packaging (boxes, bags): 1,000–5,000 units
- Promotional products & gifts: 100–500 units
How to Negotiate a Lower MOQ
MOQs are not fixed — they are a starting position. Here is how to bring them down:
- Accept a higher unit price — you are asking the factory to absorb more fixed cost per unit, so compensate them for it.
- Reduce customisation — fewer colour variants, simpler packaging, and standard components all reduce setup complexity.
- Commit to future volume — a purchase order commitment for the next order gives the factory confidence to accept a smaller first run.
- Pay the tooling separately — if you cover the mould or setup cost upfront, factories are often far more flexible on quantity.
- Work with a trading company or consolidator — they combine orders from multiple buyers to hit the factory minimum.
When MOQ Isn't Negotiable
Some factories genuinely cannot go lower — particularly those with large, specialised production lines. In those cases, find a smaller factory that caters to startups and small brands, or consider a domestic manufacturer for your initial run while you validate the market before going overseas at scale.