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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MOQ (Minimum Order Quantity) is the smallest number of units a supplier or factory is willing to produce or sell in a single order.
The smallest number of units a supplier is willing to produce or sell in a single order, based on their costs, capacity, and risk.
MOQ requirements shape your cash flow, risk, and launch strategy.
Higher MOQ means more cash locked up before you know how the SKU will perform.
Large MOQs increase risk of overstock, discounting, or expiry.
High MOQs per SKU force fewer styles/colours or bigger upfront investment.
More units mean more warehouse space and higher handling costs.
Suppliers don't pick MOQ numbers at random. They reflect cost, capacity, and risk.
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.
What founders often get wrong about minimum order quantities.
MOQ is just supplier greed.
Most factories set MOQs to cover setup and material constraints. They're protecting their economics.
MOQ is always fixed and non-negotiable.
Often negotiable if something changes: higher unit price, simpler spec, fewer colours, or reorder commitment.
Lowering MOQ won't affect price.
Reducing MOQ almost always raises unit price because fixed costs spread over fewer units.
MOQ only applies to finished product.
There can be hidden MOQs for packaging, prints, special ingredients, fabrics, or trims.
MOQ is the same everywhere.
Different factories and regions structure costs differently. Big factories often have higher minimums.
A founder checklist for managing minimum order quantities.
Know how much you can spend per SKU and what sell-through you need before asking about MOQ.
High MOQs per colour or size can blow the budget. Start with fewer options.
Stock packaging or existing moulds can sometimes lower MOQs vs. fully custom.
Order the minimum you can manage, plan for fast reorder if it works.
Large factories usually have higher minimums. Smaller specialists might be more realistic.
Sourcy turns MOQ from a black box into a planning tool.
Share your product idea and budget
Get matched with realistic factories and MOQ options
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.
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.