Sourcing Basics

What is MOQ? How to Negotiate Lower Quantities with Suppliers

Nov 11, 2025
8 min read

You found the perfect product. The price is right. The quality looks great. Then you see it: MOQ: 1,000 Units.

If the unit cost is $5, that is a $5,000 upfront investment for a product you haven't even tested yet. This is the biggest barrier for new e-commerce sellers.

But here is the truth: MOQ is rarely set in stone. It is a negotiation tool. In this guide, we will explain why MOQ exists, how to spot "fake" MOQs, and the 3 negotiation strategies that work in 2025.


What is MOQ? (The Definition)

MOQ = Minimum Order Quantity.

It is the lowest number of units a supplier is willing to sell to you at one time.

  • High MOQ (Factory): 1,000 - 5,000 units. Buying direct from the source. Lowest price.
  • Low MOQ (Trader): 50 - 500 units. Buying from a middleman. Higher price.
  • No MOQ (Retail): 1 unit. Buying from AliExpress/Amazon. Highest price.

Why Do Factories Have MOQs?

It isn't because they are greedy. It is because of Fixed Costs.

To make your custom branded yoga mat, a factory has to:

  1. Stop their machines (Loss of time).
  2. Clean the molds.
  3. Mix the specific color dye you asked for.
  4. Calibrate the cutting tool.

This setup process might take 4 hours. If they run the machine for only 1 hour to make 50 units, they lose money. They need to run the machine for 10 hours (1,000 units) to amortize the setup cost.

Typical MOQs by Category

Category Standard MOQ Why?
Simple Plastic (Molds) 1,000 - 5,000 Injection molding machines are expensive to set up.
Textiles / Clothing 300 - 500 Fabric rolls come in bulk. They must use the whole roll.
Electronics 500 - 1,000 Component sourcing (chips/boards) requires bulk buys.
Handmade / Wood 50 - 100 High labor cost, low setup cost. Easier to do small batches.

3 Ways to Lower the MOQ

Suppliers want to do business. They will be flexible if you show them you are a professional partner, not a time-waster.

1. The "First Batch" Strategy

Don't say: "I'm small and can't afford 1,000."
Say: "We are launching a new product line. Our policy requires a pilot run of 200 units to test market reception before committing to our standard 1,000 unit order."

Frame the small order as a step towards a big order.

2. Offer to Pay Higher for Lower Quantity

This is simple math. If the supplier loses money on setup for small orders, offer to cover it.

"I understand your MOQ is 500 at $4.00. Since we only need 100 units for this trial, we are willing to pay $5.50 per unit."

It is better to pay $5.50 for 100 units ($550 total risk) than $4.00 for 500 units ($2,000 total risk). You are buying risk reduction.

3. Order "Off the Shelf" (White Label)

Often, the MOQ is high because you want a Custom Logo or Custom Color.

Ask the supplier: "Do you have any neutral/blank stock available right now?"

If they have generic inventory sitting in the warehouse, they might sell you 50 units immediately. You can add a sticker logo yourself later.

The "Mix and Match" Trick

If you need 500 units to meet MOQ, ask if you can split it across variations.

  • Hard for Supplier: 100 Red, 100 Blue, 100 Green (They have to dye fabric 3 times).
  • Easy for Supplier: 250 Small, 250 Medium (If they are all Black).

Understand what drives the MOQ (Fabric? Paint? Mold?) and be flexible on the other variables.

FAQ

What if the supplier says "No"?

Move on. There are thousands of suppliers. Or, look for a "Trading Company" on Alibaba. Trading companies buy from factories and resell in smaller batches. You pay a higher price, but get lower MOQs.

Does "Sample Order" count as MOQ?

No. A sample is usually 1 unit. Expect to pay a very high price for a sample (e.g., $50 for a $5 item) because they have to stop everything to ship one box to you via air mail.

Can I negotiate MOQ on 1688.com?

Yes, 1688 is the domestic Chinese version of Alibaba. MOQs are often much lower (e.g., 2-5 units) because they supply local Chinese shops. However, you will need a sourcing agent to buy from there as they don't ship internationally.

Conclusion

MOQ is a filter. It keeps the "wantrepreneurs" away from the serious factories.

By understanding the supplier's costs and offering to pay a "small order fee," you can usually bypass the MOQ barrier and start your brand with minimal risk.

Action Step: Find a product on Alibaba with a 1,000 MOQ. Send a message using Strategy #2 ("Willing to pay a premium for a 100 unit trial"). See how fast they reply "Yes."

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Paying $1.00 extra per unit to lower MOQ is smart. Check if you are still profitable with the calculator.

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