MOQ Explained: Why Quantity Is Everything in Product Sourcing

By TOM, Founder of TOM SOURCING

17th July, 2025 in Shanghai

When you contact a factory to source a product, the first question they usually ask is: “How many do you want?”

If your answer is far below their Minimum Order Quantity (MOQ), you might notice their attitude suddenly changes — sometimes they just stop replying. And you may wonder, why? I’m here to explain that in a straightforward way.

You’re Not Their Target Customer (At Least Not Yet)

If your order quantity is too small, it simply doesn’t make business sense for them. Factories run their production lines with efficiency in mind. Small orders often mean more setup time, higher costs per unit, and less profit — sometimes even a loss.

This doesn’t mean the factory is rude or unprofessional. It’s just economics. Your order isn’t valuable enough to cover their fixed costs.

Real-Life Example: When a Small Order Costs More Than Double

Recently, a long-term client asked me about ordering only 100 units of a product he used to buy in quantities of 500 or 1000. I told him honestly: it’s difficult to get a good price on such a small order.

I went to ask the factory anyway. They were reluctant and frankly a bit annoyed. Eventually, they agreed to produce the smaller batch — but the price shot up by 50%.

When I shared this with the client, he was surprised and asked “Why?”

Let me break it down simply:

• Setting up and cleaning the production line takes time — let’s say 2 hours total.

• Making 500 units takes about 5 hours of production time, so total run time is 7 hours. At 200 RMB/hour, total cost is 1400 RMB, or 2.8 RMB per unit.

• Making 100 units still requires the same 2 hours setup time plus 1 hour production = 3 hours total. That’s 600 RMB total, or 6 RMB per unit.

The fixed cost of setup is spread over fewer units, so the per-unit cost doubles. That’s the harsh reality of manufacturing economics.

Why Do Some “Factories” Accept Very Small Orders?

You may find suppliers online that say they can do 1-piece orders with customization. Often, these are:

• Trading companies consolidating multiple small orders

• Print-on-demand or white-label service providers

• Factories selling ready stock with simple branding changes

• E-commerce teams selling factory products online

• Factories willing to lose money on small test orders

So, be cautious — these are not the traditional factories running large-scale production lines.

The Truth About Upwork and Small Order Requests

On platforms like Upwork, I often see buyers asking for the lowest price, best quality, no MOQ, and negotiable terms. That’s a recipe for confusion.

This isn’t a grocery market deal — this is B2B sourcing. The one constant factor that truly affects price is: Quantity. Quantity. Quantity.

Final Thoughts: There’s No Free Lunch

No matter how advanced technology becomes or how many platforms connect buyers and suppliers, one thing remains unchanged:

You can’t have quality, low cost, and no MOQ all at once. Someone has to pay the cost — it usually comes from volume.

At TOM SOURCING, we help clients navigate these realities. Whether you’re placing your first order or scaling up, we provide honest advice and find the best solutions that fit your needs.

Visit us at www.tomsourcing.com to learn more about how we can support your sourcing journey.