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Sourcing

How to Negotiate MOQ and Better Terms with Chinese Factories

Jan 30, 20256 min read
Marcus Wei
Marcus Wei
Sourcing & Logistics Lead
How to Negotiate MOQ and Better Terms with Chinese Factories

Minimum order quantity is the first number a factory names and the first number a buyer tries to move. Treat it as a starting point, not a wall.

Earn a lower MOQ with a trial order paid at a slightly higher unit price. Factories hate setting up a line for a tiny run, but they'll do it if the per-unit margin compensates for the setup.

Offer a phased commitment: a small first order now, a larger reorder at an agreed price within 90 days. A credible forecast with a deposit beats a vague promise of volume.

Bundle SKUs to hit the factory's economic run size. Combining three related products into one production batch often satisfies MOQ without over-committing to any single item.

For steady volume, negotiate an annual framework agreement that locks price and priority production slots. The leverage you gain after two clean reorders is real — use it.