Minimum Order Quantity (MOQ)
MOQ is the minimum order quantity (or minimum order value) a supplier will accept; below it the supplier typically won't produce or charges a premium, making it a key term in inquiries and negotiation.
Minimum Order Quantity (MOQ) is the lowest quantity a supplier or factory will accept and produce; it sometimes appears as a Minimum Order Value (MOV). Its purpose is to cover fixed costs — setup, raw-material procurement, labor and overhead. If the order is too small, per-unit and handling costs become uneconomic.
MOQ levels depend on the raw-material minimums, line setup/changeover costs, whether the item is customized (color, spec, logo/packaging), and whether tooling or printing plates are required. Stock items usually have lower MOQs, while customized, molded or privately-packaged products carry higher ones.
Practical points for Chinese exporters: MOQ is negotiable, not absolute — handle small orders by raising the unit price, charging sampling/tooling fees, agreeing future reorders, consolidating, or mixing multiple SKUs to reach the threshold. Distinguish per-style/color MOQ from total-order MOQ, as many factories apply both. Align MOQ with carton pack quantity and with FCL/LCL volume or weight so you don't ship a partly-filled container at uneconomic freight. When buying from upstream factories, you face their MOQ too, so build that cost and inventory pressure into your pricing and stocking plan.
FAQ
- The customer says the MOQ is too high and wants a small order — what can I do?
- Common options: raise the unit price for small orders to spread fixed costs; charge tooling/sampling fees, possibly creditable against a future reorder; allow mixing several styles/colors to reach the total threshold; or run a small trial batch followed by reorders. The key is to quantify the factory's real setup and material costs before deciding how much to concede.
- How does MOQ relate to container loading (FCL/LCL)?
- Ideally the MOQ should match the carton pack quantity and container capacity so you ship full or near-full containers at more economic freight. If the quantity only fills an LCL shipment, note that LCL has higher per-unit cost and a minimum chargeable volume; when quantities approach a full container, FCL is often cheaper. Factor this logistics cost into your quotation.
Related terms
Sources: https://www.alibaba.com/ · https://english.customs.gov.cn/