For small fashion brands, finding a manufacturer with low Minimum Order Quantities (MOQs) can be challenging. Many factories require hundreds or even thousands of units per order, which can be a financial barrier for startups.

However, there are strategies to find small-batch manufacturers, negotiate better MOQ terms, and scale up production efficiently. This guide will walk you through where to find low MOQ suppliers, how to approach negotiations, and the best ways to scale once demand increases.

Step 1: Understanding MOQs & Why They Matter

What is a Minimum Order Quantity (MOQ)?

MOQ refers to the minimum number of units a manufacturer requires per order. This applies to:

• Garment production (e.g., 100 pieces per style per color)

• Fabric sourcing (e.g., 500 meters per fabric type)

• Trims & accessories (e.g., 1,000 buttons or zippers)

Why Do Manufacturers Set MOQs?

• Bulk production lowers costs per unit.

• Factories optimize their production efficiency by producing large quantities.

• Suppliers have MOQ requirements for fabrics and trims, affecting the manufacturer’s ability to offer lower MOQs.

✔ How ERP Helps:

• Tracks MOQ requirements across different suppliers to optimize sourcing.

Example: A startup struggling with high MOQs found a low MOQ factory through a domestic supplier network, allowing them to launch with only 50 units per style.

Step 2: Where to Find Low MOQ Clothing Manufacturers

1. Online Manufacturer Directories

• Maker’s Row (USA) – Great for small-batch domestic production.

• Sqetch (Europe) – Connects brands with European manufacturers.

• Alibaba (Global) – Search for “low MOQ clothing manufacturers.”

• Foursource (Global) – A sourcing platform for finding small MOQ suppliers.

2. Fashion Trade Shows & Supplier Events

• Attend trade shows like Première Vision, MAGIC, and Texworld to meet manufacturers.

• Visit local fashion incubators and garment districts for small-scale production options.

3. Domestic vs. Overseas Manufacturers

| Factor | Domestic Factories | Overseas Factories |
| --- | --- | --- |
| MOQ | 50-100 units | 200-1,000 units |
| Lead Time | 2-6 weeks | 4-12 weeks |
| Cost Per Unit | Higher | Lower |
| Shipping Costs | Lower | Higher

Cost-Saving Tip: Work with local factories for small batches, then transition to overseas production when scaling.

✔ How PLM Helps:

• Stores factory details, MOQs, and production capabilities for future scaling.

Example: A new swimwear brand found a small-batch ethical factory in Portugal, allowing them to start with just 80 pieces per design.

Step 3: How to Negotiate a Lower MOQ with Manufacturers

1. Offer a Long-Term Relationship

Manufacturers prefer brands that show growth potential. Instead of asking for low MOQs outright, present a scaling plan:

• Start with a small test order (e.g., 50 units)

• Commit to larger orders over time

• Show projected order volumes based on sales forecasts

2. Choose Stock Fabrics Instead of Custom Textiles

• Custom-dyed or printed fabrics often have high MOQ requirements.

• Use stock fabrics available in smaller quantities to lower costs.

3. Reduce SKU Complexity

• Instead of producing 5 different styles at 50 units each, simplify to 2-3 core styles to meet the MOQ.

• Use one fabric across multiple designs to reduce sourcing issues.

  
  

✔ How PLM Helps:

• Tracks fabric availability and supplier MOQs for smart material planning.

  
  

✔ How ERP Helps:

• Monitors unit costs per order size to optimize production expenses.

  
  

Example: A sustainable T-shirt brand negotiated a 100-unit MOQ instead of 300 by agreeing to a second production run after the first batch sold out.

Step 4: Scaling Production After Testing Demand

Once you validate demand, you’ll need to increase order sizes while keeping costs under control.

1. Analyze Sales Data Before Scaling

• Use early sales numbers to project future demand.

• Avoid overproduction by using pre-orders or waitlists.

2. Optimize Cash Flow for Larger Orders

• Offer wholesale or crowdfunding to finance bulk production.

• Negotiate payment terms with manufacturers (e.g., 30% deposit, 70% on delivery).

  
  

✔ How ERP Helps:

• Tracks cash flow and supplier payment schedules to avoid financial strain.

Example: A new handbag brand scaled from 50 units to 500 units per style after proving demand through a pre-order campaign.

Step 5: Cost Breakdown for Low MOQ Production

Estimated Cost Per Unit Based on MOQ

| Garment Type | MOQ: 50 Units | MOQ: 500 Units |
| --- | --- | --- |
| Basic T-Shirt | $15 per unit | $7 per unit |
| Hoodie | $25 per unit | $12 per unit |
| Dress | $40 per unit | $20 per unit |
| Denim Jacket | $60 per unit | $30 per unit

Cost-Saving Tip: Start with a higher-priced limited edition collection to justify higher per-unit costs in small production runs.

✔ How ERP Helps:

• Tracks profit margins based on different MOQ scenarios.

  
  

Example: A startup reduced unit costs by 25% after transitioning from 50 to 200 units per order.

Why PLM & ERP Are Essential for Low MOQ Fashion Brands

| Challenge | How PLM Helps | How ERP Helps |
| --- | --- | --- |
| Finding Low MOQ Suppliers | Centralizes manufacturer contacts and terms | Tracks production costs & payment terms |
| Negotiating MOQ & Scaling Up | Manages product revisions and supplier agreements | Forecasts cash flow for larger orders |
| Reducing Costs in Small-Batch Production | Optimizes material sourcing and fabric use | Monitors unit cost changes per order size |
| Managing Inventory Efficiently | Links product designs to stock availability | Prevents overproduction and deadstock

Conclusion

Finding low MOQ manufacturers is possible with the right strategy. By sourcing small-batch factories, negotiating flexible terms, and optimizing costs through PLM & ERP, small fashion brands can launch successfully without excessive inventory risks.

Next Steps:

• Download our Small-Batch Manufacturing Guide.

• Book a KOBO PLM demo to streamline supplier management.

• Get expert advice on scaling production while maintaining low costs.