In manufacturing, MOQ (Minimum Order Quantity) is a common topic and sometimes misunderstood.
From a factory’s perspective, MOQ is not meant to turn away small buyers, but to ensure sustainable production, stable quality, and reasonable pricing.
The primary reasons for setting MOQ are as follows:
1. Controlling Production Costs
Every production run involves fixed costs, such as machine setup, tooling or mold adjustments, and labor preparation.
When the order quantity is too small, these costs are spread over very few units, resulting in very high unit costs or even losses.
Moreover, continuous and large-scale production is far more efficient, while frequent product changes lead to efficiency loss.
2. Supply Chain Considerations
When purchasing raw materials, factories also face MOQ requirements from upstream material suppliers.
Orders must be consolidated to meet these requirements and keep material costs under control.
3. Ensuring Sustainable Profitability
Whether it is a small or large order, the administrative work—such as order processing, production planning, follow-up, invoicing, and payment handling—is the same.
MOQ helps ensure that each order generates enough margin to cover these fixed operational costs.
As can be seen from the above information,
MOQ is not a “barrier,” but a tool to balance cost, efficiency, profitability, and supply chain stability.
A reasonable MOQ ultimately helps deliver more competitive pricing, consistent quality, and reliable lead times to customers.
