Direct Answer
Minimum Order Quantity (MOQ) is determined by the formula type, packaging type, and the factory's own policy. It can be lowered by choosing a ready-made formula and standard packaging, negotiating a commitment to future orders, or choosing a smaller, more flexible factory.
What Is MOQ and Why Do Factories Require It?
Minimum Order Quantity (MOQ) is the smallest quantity a factory will accept in a single production run. Factories set it because every production run involves fixed setup costs for machines and materials, regardless of the quantity produced.
What Determines a Product's MOQ
- Formula type: Ready-made (stock) formulas usually have lower MOQs than fully exclusive, custom-developed formulas.
- Packaging type: Standard packaging available at the factory has a lower MOQ than a custom mold.
- The factory's own policy: Every factory sets a different minimum based on its size and production capacity.
How to Lower Your MOQ
- Start with a ready-made formula instead of a fully exclusive one.
- Choose standard packaging available at the factory instead of a custom mold.
- Negotiate a commitment to future orders in exchange for a lower first-order quantity.
- Look for smaller factories that are more flexible with smaller orders (part of what we do when sourcing the right factory for you).