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Glossary guide

Why do factories have MOQs—and how do you know if one is reasonable?

MOQ means minimum order quantity: the smallest order a supplier will accept under the quoted terms.

Resources
Fabric rolls and stacked cut pieces illustrating material and production batch constraints

Factories have setup costs, material minimums and production constraints that shape their MOQs. Understanding which constraint sets the minimum gives you something useful to negotiate.

There is no useful universal number. Compare suppliers working to the same specification, customization and production method. A minimum can be economically justified for that factory and still be unsuitable for your business.

Ask: “Which material, component or production step sets this minimum—and what would need to change to reduce it?”

Request alternatives with their prices and trade-offs. If the minimum stays unchanged after removing custom materials, reducing variants and offering to cover setup, ask what constraint remains.

The answer helps you decide whether to adjust the product, accept the commitment or approach a different factory.

Reference: Apparel Production — Understanding MOQs

Product Feasibility & Development Planning