What is MOQ? Minimum Order Quantity Explained

Starting a clothing brand is exciting, but when you first approach manufacturers, you’ll encounter a term that can feel like a roadblock: MOQ.

If you’ve ever asked a factory for a quote and received a response like “Our MOQ is 500 pieces per color,” you might have wondered: “What exactly does MOQ mean, and why do they have this requirement?”

MOQ (Minimum Order Quantity) is a fundamental concept in clothing manufacturing that affects everything from your startup costs to your pricing strategy. Understanding MOQ helps you plan smarter, negotiate better, and choose the right manufacturing partner for your business.

In this comprehensive guide, we’ll explain everything about MOQ – from what it means and why factories use it, to how you can find low MOQ manufacturers as a startup.

What you’ll learn:

• What MOQ means in clothing manufacturing
• Why manufacturers set minimum order quantities
• How MOQ affects pricing and profit margins
• Strategies to work with MOQ requirements as a startup
• Where to find low MOQ clothing manufacturers

Let’s dive in and make MOQ work for your brand.

Understanding MOQ: What It Means

MOQ stands for Minimum Order Quantity – the smallest number of units a manufacturer will produce in a single order. It’s the factory’s way of saying, “This is the minimum commitment required for us to start production.”

MOQ in Different Contexts

Per Order MOQ: The minimum pieces per single order

• Example: “MOQ: 100 pieces per color”

Total Order MOQ: The minimum total order value

• Example: “Minimum order: $1,000 USD”

Per SKU MOQ: Minimum pieces per design/color/size

• Example: “MOQ: 50 pieces per SKU”

Sample MOQ: Minimum quantity for sample production

• Example: “Sample MOQ: 1-5 pieces (often credited toward bulk order)”

Why MOQ Matters for Your Business

MOQ directly impacts:

• Startup Capital: Higher MOQ = larger initial investment
• Inventory Risk: Ordering more means holding more stock
• Cash Flow: Larger orders tie up cash for longer periods
• Pricing Strategy: Higher quantities typically mean lower per-unit costs
• Product Testing: Lower MOQ lets you test multiple designs with less risk

Why Manufacturers Set MOQ Requirements

Manufacturers don’t set MOQs to be difficult – they set them because of very real business and operational constraints. Understanding these reasons helps you navigate MOQ negotiations more effectively.

1. Production Efficiency

Manufacturing isn’t as simple as “sew one shirt, ship one shirt.” Factories operate with:

• Material Minimums: Fabric suppliers often sell in minimum quantities (e.g., 1000 meters minimum). If your order doesn’t use all the fabric, the factory must absorb the remaining cost.
• Setup Time: Machines, cutting tables, and production lines require time to set up. Whether you order 50 pieces or 500 pieces, setup time is nearly the same.
• Production Runs: Running a production line is most efficient with minimum quantities. Stopping and starting costs time and money.

Impact: To make production economically viable, factories need to cover setup and material costs with sufficient volume.

2. Quality Control Requirements

Quality control isn’t free – and it becomes less efficient with smaller orders.

• AQL Inspection: Factories typically inspect samples from production using AQL (Acceptance Quality Limit) standards. Inspection time is relatively fixed regardless of order size.
• Defect Rates: Every production run has a normal defect rate (typically 2.5-4.0%). With 100 pieces, 2-4 defective pieces might represent the entire order. With 1,000 pieces, it’s manageable.
• Testing Costs: Fabric testing, color matching, and size verification have fixed costs that must be amortized across the order.

Impact: Larger orders make quality control cost-per-unit lower and more manageable.

3. Material Sourcing Commitments

Factories don’t manufacture everything from raw materials they keep in stock. Many materials require special orders:

• Custom Fabrics: Dyed or printed fabrics often require minimum dye lots (e.g., 500 kg minimum per color).
• Specialized Materials: Eco-friendly fabrics, performance materials, or unique blends may have supplier-imposed minimums.
• Accessories: Buttons, zippers, labels, and packaging often come in bulk quantities.

Impact: The factory must commit to minimum material quantities to produce your order.

4. Labor and Cost Allocation

Factory overhead and labor costs need to be distributed across production:

• Fixed Costs: Factory rent, utilities, equipment depreciation, and management salaries are fixed whether production is 100 pieces or 10,000 pieces.
• Labor Allocation: Skilled workers are allocated to production lines. Smaller orders may not justify dedicating experienced workers.
• Administrative Costs: Order processing, documentation, and shipping coordination costs are similar for small and large orders.

Impact: Larger orders better allocate fixed and administrative costs per unit.

How MOQ Affects Pricing and Profit Margins

MOQ and pricing have a direct relationship – understanding this helps you make smarter business decisions.

The Volume-Price Relationship

Basic Rule: Higher quantity = Lower unit price

Here’s a typical example:

Why This Happens:

• Fixed costs (setup, materials) spread across more units
• Better material pricing for larger quantities (bulk discounts)
• More efficient production (less machine stop/start)
• Better labor allocation per unit

Profit Margin Calculations

Example Scenario:

You’re launching a t-shirt line and plan to sell at $35 retail.

Key Insight: Even though total investment is higher for larger orders, profit margin per unit increases significantly. This is why established brands with capital advantage can be more profitable than startups.

The Startup Dilemma

Challenge: You want the lower unit price (higher quantity), but you lack the capital to commit to large orders.

Solutions:

1. Start with lower MOQ manufacturers (more on this below)
2. Focus on fewer SKUs (e.g., 3 designs instead of 10)
3. Pre-sell (take orders, then manufacture)
4. Partner with other brands (combine orders to meet MOQ)

[Image: Chart showing MOQ vs Price relationship with profit margin comparison]

Chart: Visual representation of how unit price decreases and profit margins increase as order quantity grows

Common MOQ Ranges in Clothing Manufacturing

MOQ varies significantly by manufacturer type, location, and production capabilities. Here’s what to expect:

By Manufacturer Type

Large Factories (500+ workers)

• MOQ: 500-5,000 pieces per color/size
• Best for: Established brands with consistent orders
• Pros: Lowest unit prices, highest capacity, established processes
• Cons: Inflexible, long lead times, less personalized service
• Example: Manufacturers producing for major retail brands

Medium Factories (50-500 workers)

• MOQ: 100-1,000 pieces per color/size
• Best for: Growing brands with moderate volume
• Pros: Balance of price and flexibility, better communication
• Cons: Higher prices than large factories
• Example: Typical Guangzhou clothing manufacturers

Small Factories/Workshops (5-50 workers)

• MOQ: 30-200 pieces per color/size
• Best for: Startups, small batches, custom work
• Pros: Highly flexible, personalized service, faster turnarounds
• Cons: Higher unit prices, limited capacity
• Example: Boutique workshops, custom manufacturers

Low MOQ Manufacturers

• MOQ: 10-100 pieces per color/size
• Best for: Startups testing new designs, small businesses
• Pros: Minimal risk, low capital requirements, design iteration
• Cons: Highest unit prices, longer lead times sometimes
• Example: Algo Bert Fashion and similar manufacturers

By Product Category

Basic T-Shirts & Casual Wear

• MOQ: 50-300 pieces per color
• Why: Simple construction, lower material costs, less setup time

Dresses & Women’s Wear

• MOQ: 100-500 pieces per color
• Why: More complex patterns, additional fitting requirements

Outerwear (Jackets, Coats)

• MOQ: 200-1,000 pieces per color
• Why: More materials (lining, insulation), complex construction

Activewear & Performance Wear

• MOQ: 150-500 pieces per color
• Why: Specialized materials require minimum dye lots, technical construction

Custom or Complex Designs

• MOQ: 200-2,000+ pieces
• Why: Higher setup time, more quality checks, specialized materials

Strategies for Startups to Work with MOQ

Starting with limited capital doesn’t mean you can’t work within MOQ constraints. Here are proven strategies.

Strategy 1: Pre-Selling and Crowdfunding

Concept: Sell before you manufacture.

How It Works:

1. Create designs and renderings (3D mockups or samples)
2. Launch pre-order campaign (website, Kickstarter, Instagram)
3. Collect orders and payment
4. Use collected funds to meet manufacturer’s MOQ
5. Manufacture and ship to pre-order customers

Benefits:

• No upfront capital risk
• Validates demand before production
• Can meet higher MOQs
• Test multiple designs simultaneously

Challenges:

• Longer delivery time for customers (explain this clearly)
• Requires strong marketing before production
• Need excellent communication about delays if any

Strategy 2: Start Small, Scale Gradually

Concept: Begin with lowest viable MOQ, increase as brand grows.

Implementation:

1. First Collection: 3-5 designs, minimum quantities each
2. Test Response: Market small inventory, gather feedback
3. Successful Designs: Reorder at higher quantities for better pricing
4. Unsuccessful Designs: Don’t reorder – move capital to winners

Example Progression:

• Month 1: 100 pieces total (20 pieces × 5 designs)
• Month 3: 300 pieces (60 pieces of top 2 designs + 30 pieces × 5 new designs)
• Month 6: 1,000 pieces (200 pieces of top 5 designs)

Benefits:

• Minimal initial investment
• Learn what sells before committing more
• Build supplier relationship gradually
• Improve negotiation position over time

Strategy 3: Limit SKU Count Initially

Concept: Fewer designs = lower total MOQ commitment.

Strategy:

• Instead of: 20 designs with 50 pieces each = 1,000 pieces
• Try: 5 designs with 100 pieces each = 500 pieces

Benefits:

• Lower total capital requirement
• More marketing focus per design
• Easier inventory management
• Less production complexity

Transition:

• As you identify winning designs, increase quantities on those
• Phase out poor performers
• Gradually expand to 10+ designs as business grows

Strategy 4: Partner Order Consolidation

Concept: Combine orders with other small brands.

How It Works:

1. Find complementary brands (not direct competitors)
2. Approach manufacturer with combined order
3. Split MOQs across brands
4. Each brand gets lower quantity but meets total MOQ

Example:

• Brand A needs 100 pieces
• Brand B needs 150 pieces
• Factory MOQ: 500 pieces
• Combined order: 250 pieces (still below 500, but closer)
• Better approach: Both brands order 250 pieces each = 500 total

Finding Partners:

• Online communities for startup fashion brands
• Industry networking events
• Social media groups (LinkedIn, Facebook)
• Trade show connections

[Image: Diagram showing order consolidation concept]

Diagram: Visual representation of multiple brands combining orders to meet factory MOQ

Finding Low MOQ Manufacturers

Finding manufacturers willing to work with small orders requires knowing where and how to look.

Characteristics of Low MOQ Manufacturers

Business Model:

• Startup-focused business model
• Understands brand growth trajectory
• Willing to start small and grow together

Production Approach:

• Flexible production capabilities
• Can handle small batches efficiently
• Often specialize in quick-turnaround production

Communication Style:

• More personalized service
• Responsive to small brand needs
• Willing to educate and guide new founders

Location Considerations:

• Often based in manufacturing hubs with diverse supplier networks (Guangzhou, Shenzhen)
• May have smaller operations but access to larger networks

Where to Find Low MOQ Manufacturers

Alibaba/Global Sources:

• Filter by “small order accepted”
• Look for suppliers with “Ready to Ship” options (already have materials in stock)
• Verify supplier response rate and communication quality

Trade Shows:

• Canton Fair (Guangzhou) – Excellent for meeting manufacturers face-to-face
• Magic Show (Las Vegas) – International manufacturers
• Textile shows (Première Vision, Texworld) – Fabric and material suppliers

Industry Directories:

• ThomasNet
• MFG.com
• Kompass
• Industry-specific directories for clothing manufacturers

Referrals and Networking:

• Ask other brand owners in your network
• Join fashion entrepreneur communities
• Connect with suppliers on LinkedIn
• Attend local fashion incubators or maker spaces

Manufacturer-Specific Platforms:

• Platforms specializing in low MOQ manufacturing
• Startup-focused manufacturer directories
• Services connecting small brands with flexible producers

How to Evaluate Low MOQ Manufacturers

Questions to Ask:

1. What is your MOQ for new customers? (Specific, not general)
2. Do you offer different MOQs for different price points?
3. Is the MOQ per color or per design?
4. What’s the sample order quantity and cost?
5. Do you offer MOQ reductions for repeat orders?
6. What payment terms are available for startups?

Red Flags:

• Extremely low MOQ with suspiciously low prices
• Lack of clear MOQ policy in communication
• Unwillingness to provide samples
• Pushing for much larger quantities than discussed

[Image: Checklist for evaluating manufacturers]

Checklist: Visual guide of key questions and criteria for selecting low MOQ manufacturers

How Algo Bert Fashion Can Help

At Algo Bert Fashion, we understand that startups have unique challenges – limited capital, need for design iteration, and desire to minimize risk. That’s why we’ve built our business model around supporting new brands.

Our Low MOQ Approach

MOQ as Low as 50 Pieces:

• For basic t-shirts and casual wear
• Per color/size
• No minimum order value requirement

Flexible Production Options:

• Sample orders: 1-5 pieces (credited toward bulk order)
• First production: Start with 50-100 pieces
• Reorders: Lower MOQs for returning customers

Benefits for Startups

Minimal Capital Risk:

• Start with 50-100 pieces instead of 500-1,000
• Test designs with small quantities
• Scale up as you identify winners

Design Iteration:

• Order samples before bulk production
• Make adjustments to patterns or designs
• Reorder with confidence after testing

Transparent Pricing:

• Clear price breakdown (materials, labor, overhead)
• Volume discounts clearly communicated
• No hidden fees or surprise charges

Industry Expertise:

• Located in Guangzhou – China’s manufacturing hub
• Network of material suppliers and specialized factories
• Experience working with international brands

Our Services

• Custom Manufacturing: Bring your designs, we produce to your specifications
• Material Sourcing: We help you find and source fabrics within your budget
• Tech Pack Creation: Don’t have technical drawings? We can help create them
• Sample Production: Quick turnaround on samples for design approval
• Quality Control: AQL inspection included in production
• Flexible Shipping: Sea freight, air freight, or courier based on your timeline

Learn more about our low MOQ manufacturing services

FAQ: Questions About MOQ

What is MOQ in simple terms?

MOQ stands for Minimum Order Quantity – it’s the smallest number of units a manufacturer will produce in a single order. Think of it as the factory’s “we don’t accept orders smaller than X” policy. This helps manufacturers cover their setup costs, material minimums, and ensure production efficiency while offering the lowest possible unit prices.

Why do manufacturers have MOQ requirements?

Manufacturers set MOQs because of production economics: they have fixed costs for setup, quality control, and material sourcing that must be spread across enough units to be profitable. Additionally, material suppliers often sell in minimum quantities (e.g., fabric dye lots of 500 kg), so factories must order enough fabric to use what they purchase. Larger orders also make quality control more efficient – inspecting and replacing 2 defective pieces in a 1,000-piece order is easier than in a 50-piece order.

Is it possible to negotiate MOQ with manufacturers?

Yes, MOQs can sometimes be negotiated, especially for: (1) First-time customers – many manufacturers offer lower “trial order” MOQs to build a relationship; (2) Reordering customers – factories often reduce MOQs for repeat orders as trust is established; (3) Premium pricing – manufacturers may accept lower quantities if you pay a higher per-unit price to cover their inefficiencies; (4) Multiple designs – some factories accept lower MOQs per design if total order quantity across all designs meets their target. However, be respectful of MOQs – they’re often the manufacturer’s minimum viable production quantity.

What’s the typical MOQ for clothing manufacturers?

MOQs vary significantly by manufacturer type: Large factories (500+ workers) typically have MOQs of 500-5,000 pieces per color; Medium factories (50-500 workers) typically have MOQs of 100-1,000 pieces; Small factories/workshops typically have MOQs of 30-200 pieces; Low MOQ manufacturers (like Algo Bert Fashion) offer MOQs as low as 10-100 pieces. The MOQ also depends on product complexity – basic t-shirts often have lower MOQs (50-300 pieces) while complex items like jackets or outerwear can require 200-1,000+ pieces.

How can startups with limited capital work with MOQ requirements?

Startups have several strategies to work within MOQ constraints: Pre-selling – take orders through crowdfunding, pre-orders, or social media before manufacturing; Start small and scale – begin with the lowest MOQ, then increase quantities on successful designs; Limit SKUs – focus on fewer designs with larger quantities rather than many designs with small quantities; Find low MOQ manufacturers – look for startup-focused manufacturers with MOQs of 10-100 pieces; Partner consolidation – combine orders with other small brands to meet higher MOQs together.

What happens if I order less than the MOQ?

Most manufacturers simply won’t accept orders below their MOQ – it’s not viable for their production economics. However, some options exist: Pay premium pricing – some manufacturers will accept smaller quantities at a higher per-unit price to cover their additional costs; Place sample order – order 1-5 pieces as samples before committing to bulk; Ask for exceptions – for first-time customers or if you’re willing to pay higher initial pricing. Be clear about your budget constraints upfront – some manufacturers may offer alternatives or suggest different products with lower MOQs.

Does MOQ affect the per-unit price?

Yes, significantly. This is the volume-price relationship: higher order quantities typically result in lower per-unit costs because: Fixed costs (setup, pattern making, machine preparation) are spread across more units; Material suppliers offer bulk discounts for larger fabric orders; Production is more efficient with longer runs (less stopping and starting machines); Quality control costs per unit decrease with larger inspection samples. For example, a t-shirt might cost 7.50 at 1,000 pieces – a 37.5% savings per unit.

What’s the difference between MOQ and minimum order value?

MOQ (Minimum Order Quantity) refers to the number of units – the minimum pieces you must order. Minimum order value (MOV) refers to the monetary amount – the minimum total dollar value of your order. Some manufacturers specify both: e.g., “MOQ: 100 pieces OR minimum order value: $1,000” – whichever is higher. Others specify one or the other. For startups, focusing on MOQ (unit count) is typically more relevant since you’re planning inventory quantities, not just total spend.

Conclusion

MOQ doesn’t have to be a barrier to starting your clothing brand – it’s a fundamental manufacturing concept that, once understood, you can navigate strategically.

Key takeaways:

• MOQ means Minimum Order Quantity – the smallest number of pieces a manufacturer will produce
• Manufacturers set MOQs due to production efficiency, material minimums, and quality control requirements
• Higher quantities typically mean lower unit prices but require more upfront capital
• Startups have strategies to work with MOQs: pre-selling, starting small, limiting SKUs, finding low MOQ manufacturers
• Choose the right manufacturer for your stage – large factories for volume, low MOQ manufacturers for testing and scaling

The best approach is to find a manufacturing partner who understands startup challenges and offers flexible MOQs that match your current stage and budget while providing a clear path to scale as you grow.

Ready to start your clothing line without committing to large MOQs?

Why Algo Bert Fashion?

• ✅ MOQs as low as 50 pieces for new brands
• ✅ Sample orders with credit toward bulk production
• ✅ Transparent pricing – no hidden fees or surprises
• ✅ Guangzhou location – access to China’s manufacturing network
• ✅ Startup-focused – we understand your challenges because we work with new brands every day

Get Started in 3 Simple Steps:

1. [Share Your Designs] – Send us your concepts, sketches, or tech packs
2. [Review Your Quote] – Receive detailed pricing within 24-48 hours
3. [Start Small] – Order 50-100 pieces, test the market, scale up as you grow

Request a Free Quote →

Contact Our Team →

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• How to Start a Clothing Brand with No Experience
• Low MOQ Clothing Manufacturers: Complete Guide
• The Complete Guide to Clothing Manufacturing in China