MOQ: what a minimum order quantity means for your first order

Why minimums differ between factories

A minimum reflects how a factory is set up to produce, so the same product can carry very different MOQs in different places. The US International Trade Commission's study of apparel suppliers found that Cambodia's apparel industry can fulfill large orders, but also sets large minimum orders^[2], which somewhat limits its agility. In Bangladesh, after some U.S. brands and retailers shifted to smaller runs, many factories adjusted their production setups to accommodate the smaller order sizes^[2].

Treat the first MOQ you hear as the factory's opening position for its current setup, and use the questions below to move it.

What a small order does to your landed cost

A smaller order raises more than the unit price. Some import costs are fixed per shipment or per customs entry, so they weigh more on each unit of a small order.

• Customs entry type. Informal entry is generally available for shipments valued up to $2,500^[3]. Formal entry is required for shipments exceeding $2,500^[4].
• The merchandise processing fee. A formally entered shipment pays CBP a fee of 0.3464%^[5] of its value, subject to a minimum of $34.58 per entry from October 1, 2026^[6]. On a small order the minimum, not the percentage, is what you pay.
• No de minimis exemption for small parcels. The de minimis exemption is suspended for merchandise valued at $800 or less^[4] from every country and by every mode, with limited exceptions, CBP says, so even a sample shipment can owe duty.

Line	500 units	3,000 units
Unit price quoted	$6.20	$4.80
Goods value	$3,100	$14,400
Freight to your warehouse, including any minimum charge	$650	$1,500
Duty at 10% (assumed)	$310	$1,440
Merchandise processing fee at 0.3464%[5], or the minimum if higher	$34.58	$49.88
Customs broker and port fees	$300	$350
Landed cost	$4,394.58	$17,739.88
Landed cost per unit	$8.79	$5.91

Illustrative figures, not a quote. Real prices depend on the spec, quantity and factory.

The gap in landed cost per unit is wider than the gap in unit price, because the fixed charges are spread over fewer units. When a factory offers a lower MOQ at a higher price, compare the two options on landed cost per unit and on the cash tied up, not on unit price alone.

How to ask for a lower MOQ

• Ask what the minimum applies to. It may be per style, per colour, per size or per material. A factory may accept your total across colours when the colours share the same base material.
• Ask about existing designs and stock materials. A version built on the factory's own design, the OEM vs ODM distinction, or on materials it already holds, may carry a lower minimum than a new design.
• Offer a higher unit price for a smaller first run. Ask for the price at the full MOQ in writing at the same time, so the second order is already priced.
• Pay for a pre-production sample first. A signed-off sample lowers the risk on both sides, which makes a smaller first order easier to agree.
• Get quotes from more than one country. Minimums follow how each country's factories are set up, as the apparel findings above show.

When you request quotes, give both the quantity you want to start with and the quantity you expect to reorder at, so each supplier can price both.