Why Factories Require Large MOQs (Explained Simply)
If you've ever contacted a manufacturer, you've probably seen this:
"Minimum Order Quantity: 500 / 1,000 / 3,000 units"
For small brands, this feels unreasonable. You just want to test a product. The factory sounds like you're opening a supermarket chain.
But MOQs aren't random, and they're not meant to scare you. They come from how factories operate.
🏭 Factories Don't Think in "Units." They Think in "Production Runs."
When a factory makes your product, they don't just press a button. They have to:
- Set up machines
- Calibrate tools
- Prepare materials
- Schedule workers
- Set up packaging
This setup happens whether you order 100 units or 5,000.
That setup cost is the main reason MOQs exist.
🧠 The Real Reason: Efficiency
Factories make money from:
- ✔ Long, continuous production
- ✔ Fewer changeovers
- ✔ Predictable scheduling
Small orders create:
- ❌ More machine resets
- ❌ More interruptions
- ❌ Lower efficiency
So they protect their workflow by setting minimums.
It's not personal. It's operational math.
📦 Materials Also Drive MOQs
Sometimes MOQ isn't about the factory — it's about materials.
Suppliers of:
- Fabric rolls
- Plastic resin
- Packaging boxes
- Custom parts
also have minimum purchase sizes.
So your factory might have to buy more raw material than your small order requires. They pass that constraint to you.
🛠 Customization Makes MOQ Higher
The more unique your product, the higher the MOQ tends to be.
Examples:
- Custom molds
- Special finishes
- Unique packaging
- Custom colors
These increase setup complexity and cost.
Factories reduce risk by requiring bigger runs.
💡 Why MOQ Feels "Too High" for New Brands
Factories optimize for:
Production efficiency
Small brands must optimize for:
Inventory survival
That's the mismatch.
A quantity that makes sense for machines may be risky for your cash flow.
This is exactly the problem when MOQ is too high for small brands.
🧠 The Important Insight
MOQ isn't a punishment. It's a reflection of how production works.
Understanding this helps you make smarter choices like:
- Simplifying product specs
- Reducing variations
- Testing demand first
- Structuring safer first orders
You can't change factory math. But you can design your risk around it.
Learn more about testing demand first and structuring safer first orders.
📌 Final Thought
Factories think in runs. Founders must think in runway.
Once you understand why MOQs exist, the goal isn't to fight them — it's to work around them in a way that keeps your brand alive long enough to grow.
This is why group buying and strategies to meet MOQ are so valuable for small brands.
Frequently Asked Questions
Why are factory MOQs so high?
Factories require large MOQs because of setup costs that happen whether you order 100 units or 5,000 units. These include machine setup, tool calibration, material preparation, worker scheduling, and packaging setup. Factories make money from long, continuous production runs with fewer changeovers. Small orders create more machine resets, interruptions, and lower efficiency. MOQs protect their workflow and operational efficiency.
What happens if I can't sell all my stock?
If you can't sell all your stock, you face cash flow pressure, slower business decisions, emotional stress, storage costs, and urgency to discount. This is why it's so important to order the right size for your stage. Having some unsold inventory is normal, but having so much that it controls your decisions is dangerous. Smart founders structure orders so being wrong doesn't destroy them.
Do materials affect MOQ requirements?
Yes, materials often drive MOQ requirements. Suppliers of fabric rolls, plastic resin, packaging boxes, and custom parts also have minimum purchase sizes. Your factory might have to buy more raw material than your small order requires, and they pass that constraint to you. This is why MOQ isn't always about the factory—it's about material supplier minimums.
How can small brands work around large MOQs?
Small brands can work around large MOQs by: simplifying product specs, reducing variations, testing demand first, structuring safer first orders, and pooling demand with other buyers. You can't change factory math, but you can design your risk around it. The goal isn't to fight MOQs—it's to work around them in a way that keeps your brand alive long enough to grow.
Related Guides
What is MOQ?
Complete guide to minimum order quantities
MOQ Too High?
What small brands can actually do
Can You Negotiate Factory MOQ?
When negotiation works and how to ask
How to Reduce MOQ from Supplier
Negotiate lower minimum orders
How Many Units to Order First Time
Determine your first factory order size
First Time Factory Buying
Common pitfalls and safer approaches