What to Do When a Factory's Minimum Order Quantity (MOQ) Is Too High
Factories often require minimum order quantities (MOQs) of 100, 500, or even 1,000 units to offer wholesale pricing. For individuals, startups, and small businesses, this creates a difficult choice: overbuy inventory, pay reseller markups, or walk away.
This guide explains why MOQs exist and practical ways to handle them safely.
Why Factories Require MOQs
Factories optimize for:
- Machine setup costs
- Bulk material sourcing
- Labor efficiency
Producing small batches often costs more per unit, so factories set MOQs to keep production efficient.
The Risks of Buying Alone
Buying alone to meet MOQ can be risky:
- Large upfront payments before demand is proven
- Inventory risk if the product doesn't sell
- Supplier quality or shipping uncertainties
- Capital tied up for months
Many first-time buyers underestimate these risks.
Common Ways to Handle High MOQs
1. Overbuy Inventory
Some buyers purchase the full MOQ and hope to sell the rest. This ties up capital and can lead to unsold stock.
2. Use a Sourcing Agent
Agents help find factories and manage orders, but usually after you've already decided to commit.
3. Buy From Resellers
Retailers and distributors offer lower quantities, but with 2–3× markups.
4. Pool Demand With Others
Pooling demand allows multiple buyers to share the MOQ. Each buyer orders only what they need, while the group reaches the factory's minimum volume.
This approach reduces single-person risk and can unlock factory pricing without bulk buying.
When Pooling Demand Makes Sense
Pooling demand is useful when:
- You want to test demand before committing
- You don't want to front large capital alone
- Multiple buyers want the same product
Some platforms experiment with conditional group buying, where buyers reserve quantities and only proceed when enough people join and terms are confirmed.
Browse Active Pools →Conclusion
MOQs are a normal part of manufacturing, but they don't have to block small buyers. Understanding your options—and avoiding irreversible commitments—can save money and time.