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MOQ Explained: How Minimum Order Quantities Affect Your Sourcing

If you're wondering "what is MOQ" or "why is MOQ so high" when talking to factories, you're not alone. Understanding MOQs is key to planning budget, margins, and launch strategy.

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What Is MOQ In Manufacturing And Supply Chain?

MOQ (Minimum Order Quantity) is the smallest number of units a supplier or factory is willing to produce or sell in a single order.

MOQ (Minimum Order Quantity)

The smallest number of units a supplier is willing to produce or sell in a single order, based on their costs, capacity, and risk.

Factory
Warehouse
Shipping

Why MOQ Matters For Your Brand Or Business

MOQ requirements shape your cash flow, risk, and launch strategy.

Cash flow

Higher MOQ means more cash locked up before you know how the SKU will perform.

Risk

Large MOQs increase risk of overstock, discounting, or expiry.

Assortment strategy

High MOQs per SKU force fewer styles/colours or bigger upfront investment.

Operations & storage

More units mean more warehouse space and higher handling costs.

How Suppliers Decide Their MOQ Requirements

Suppliers don't pick MOQ numbers at random. They reflect cost, capacity, and risk.

1

Production setup and fixed cost

  • •Factories must set up machines, lines, moulds before production
  • •Setup cost is similar whether making 100 or 10,000 units
  • •Higher MOQ spreads fixed cost across more units
2

Raw material and component MOQs

  • •Fabric mills, chemical suppliers, packaging printers have their own MOQs
  • •If a fabric mill only sells 1,000m lots, the factory must produce enough to use that material
3

Efficiency and line scheduling

  • •Factories prefer longer runs; frequent changeovers cost time and money
  • •MOQ requirements help avoid constant stop–start for tiny batches
4

Risk and leftover stock

  • •Custom products cannot easily be resold
  • •Suppliers set MOQ to cover potential scrap or excess
5

Order volume and prioritisation

  • •Some suppliers focus on larger buyers with higher MOQs
  • •Smaller orders might be possible at higher unit cost or in low season

When you see "MOQ 3,000" on Alibaba and wonder why it's so high, it usually reflects setup, materials, and risk – not just a random number.

Common Misconceptions About MOQ

What founders often get wrong about minimum order quantities.

Myth

MOQ is just supplier greed.

Reality

Most factories set MOQs to cover setup and material constraints. They're protecting their economics.

Myth

MOQ is always fixed and non-negotiable.

Reality

Often negotiable if something changes: higher unit price, simpler spec, fewer colours, or reorder commitment.

Myth

Lowering MOQ won't affect price.

Reality

Reducing MOQ almost always raises unit price because fixed costs spread over fewer units.

Myth

MOQ only applies to finished product.

Reality

There can be hidden MOQs for packaging, prints, special ingredients, fabrics, or trims.

Myth

MOQ is the same everywhere.

Reality

Different factories and regions structure costs differently. Big factories often have higher minimums.

How To Work With MOQs Without Overstretching

A founder checklist for managing minimum order quantities.

Start from your budget, not the supplier's number

Know how much you can spend per SKU and what sell-through you need before asking about MOQ.

Simplify variants

High MOQs per colour or size can blow the budget. Start with fewer options.

Consider semi-custom or stock options

Stock packaging or existing moulds can sometimes lower MOQs vs. fully custom.

Think in tests and reorders

Order the minimum you can manage, plan for fast reorder if it works.

Use the right factory for your stage

Large factories usually have higher minimums. Smaller specialists might be more realistic.

How Sourcy Helps You Navigate MOQ

Sourcy turns MOQ from a black box into a planning tool.

1

Share your product idea and budget

2

Get matched with realistic factories and MOQ options

3

Plan first order and reorders with clear volumes

Instead of bouncing between listings asking "why is your MOQ so high?", work with a sourcing partner who understands both supplier constraints and brand realities.

MOQ Explained: Frequently Asked Questions

Need Help Making MOQ Work For Your Next Product?

If you're planning a new product and want help understanding MOQ requirements, negotiating realistic volumes, and choosing the right factory, Sourcy can help.

*It's Free. No credit card required.

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