Sourcing from China as a small business: low MOQs and first orders

Why factories set MOQs

A minimum order quantity (MOQ) is rarely arbitrary. It usually reflects the factory's real costs: the minimum amount of raw material it can buy (a roll of fabric, a batch of a custom colour), the time needed to set up a machine or a print run, and the fact that small orders take as much admin as large ones. Once you understand which of these drives the MOQ, you know what to negotiate.

Ways to get a lower MOQ

• Use stock materials and colours. Custom colours and materials are the most common reason for a high MOQ. Standard options can often be ordered in much smaller quantities.
• Customise lightly at first. A logo print, label or packaging sleeve on a standard product is far cheaper to set up than a new mould.
• Ask what drives the MOQ. If it is the material, ask whether you can share a material batch with another order, or pay a small surcharge instead.
• Offer a trial order with a clear next step. Factories accept smaller first orders more readily when they see a realistic reorder plan.
• Combine variants. An MOQ often applies per product, not per colour. Ask whether one MOQ can be split across colours or sizes.
• Consider a trading company. For very small mixed orders, a good trader that combines production from several factories can be the practical choice.

Typical MOQ ranges by product type

Keeping a small order safe

Small orders carry the same risks as large ones, and a problem hurts a small business more. Four habits protect you:

1. Verify the supplier before you pay anything: check the business licence and that the bank account name matches the company. Our factory audit checklist lists what to look for.
2. Approve a sample and keep it as the reference for production.
3. Write the specification down in the purchase order: materials, measurements, colours, packaging and labels.
4. Inspect before you pay the balance. A pre-shipment inspection is the cheapest insurance you can buy.

Budgeting for a first order

Unit price is only part of the cost. For a first order, also budget for: samples and courier; any tooling or print set-up; the inspection; freight and insurance; import duties, VAT or sales tax in your country; and your agent's fee, if you use one. On a small order, these fixed costs can add a large percentage to the landed cost per unit, so calculate the landed cost before you commit. Our guide to sourcing agent costs shows a worked example.

Shipping small orders

Small orders usually travel by LCL sea freight (sharing a container) or air freight. Air is faster and, for light goods under a few hundred kilograms, sometimes not much more expensive. If you buy from several suppliers, consolidating them into one shipment saves on minimum charges and customs entries.

How we work with small businesses

We tell you honestly whether your quantity is realistic for the product, look for factories that accept smaller first orders where possible, and include the MOQ in every quote. See China sourcing for small businesses for how we work with smaller buyers.