What Does MOQ Mean? A Plain-English Manufacturing Glossary for Artists
MOQ is the minimum order quantity a factory will make in one run. An RFQ is your request for a quote. Landed cost is what one unit really costs once it is in your hands, shipping, duties and fees included. Learn those three first. Almost every other manufacturing term hangs off one of them.
What Does MOQ Mean, and Why Does Everyone Assume I Know?
"A factory replied asking for my target price, my MOQ, and whether I wanted FOB or EXW. I didn't understand half of it. Is it obvious I have no idea what I'm doing?"
I get some version of this question all the time. And I totally get it. You finally send the email, a real factory writes back, and the reply reads like a different language.
The fear usually is not about the words. It is that not knowing them means you are not ready yet, and that the factory can tell.
Here is the honest part. Factories answer first-time customers every single day. A missing word is not what trips people up. The missing question behind the word is. Every term below is really a question you should be asking, so that is how I am going to explain them.
Let's break this down by the stage where you will run into each one.
Stage 1: Finding a Factory and Asking for a Price
MOQ (minimum order quantity)
The smallest number of units a factory will make in one production run. MOQs exist because setup work costs the same whether they make 50 or 5,000. Plates, machine time and material all have to be prepped either way. The question behind it: what is the smallest run that makes sense for both of us? MOQs are often more flexible than the listing suggests, and here is how to negotiate a lower MOQ without souring the relationship.
RFQ (request for quote)
Your message asking a factory for a price. A useful one names the product, size, material, finish, quantity and where it is shipping. The more specific you are, the more real the number you get back. I walk through how to get your first real quote step by step.
OEM and ODM
OEM means the factory makes your design to your specifications. ODM means they already have a product design and you customize it with a logo, a color or a print. Most art-on-product work sits somewhere between the two: an existing product format carrying your artwork. Knowing which one you are asking for keeps the conversation clear.
Spec sheet (sometimes called a tech pack)
The written description of exactly what you want made: dimensions, materials, colors, finish, packaging. This is the document that decides later whether something arrived "wrong."
Stage 2: What Does the Price Include?
EXW, FOB and DDP
These are shipping terms, and they tell you where the factory's responsibility ends. EXW (ex works) means the price covers the product at the factory door and everything after that is on you. FOB (free on board) means the factory gets it loaded at the port, then freight, duties and delivery are yours. DDP (delivered duty paid) means the supplier handles shipping and import duties all the way to your door. My own tip: ship DDP when you can. It turns a pile of unknowns into one number you can plan around.
Landed cost
What one unit really costs once it is in your hands. Unit price, plus samples, freight, duties, broker fees and packaging, divided by the number of units. On my small washi orders, shipping has run roughly the same as the cost of the order itself. That is exactly why the quote alone is not the price.
Duties, tariffs and HTS codes
Duty is the tax charged when goods come into the country. Tariffs usually refers to extra duties added on top for specific countries or categories. The HTS code is the number that classifies your product and decides which rate applies. One thing worth knowing: the old rule that small shipments slipped into the US duty-free no longer applies to most imports, so older advice online may be out of date.
Customs broker
A licensed person or company who files the paperwork to clear your goods through customs. On DDP shipments the supplier's side usually handles this. On FOB or EXW, you may need one.
Stage 3: Samples and Production
Sample and pre-production sample
A sample is a test unit made before your full run. A pre-production sample is made the way the real order will be made, so it is the one to approve in writing. The question behind it: does this match what I need, before I pay for hundreds of them? Here is what samples cost and what to look for.
Proof and dieline
A proof is the digital preview of your artwork placed on the product. A dieline is the template showing the exact shape, folds and cut lines for printing. Check both slowly. They are not a formality.
Lead time
How long production takes once you approve everything and pay the deposit. Shipping time is separate, so ask for both.
QC (quality control)
Checking finished goods against your spec before they ship. Some factories send photos or video. For bigger orders you can hire an inspection service.
Stage 4: Paying for It
Deposit and balance
Many factories ask for part of the payment up front to start production and the rest before the goods ship. Ask what the split is before you agree to anything.
Trade Assurance
Alibaba's order protection for payments made through the platform. It only covers you if you pay through Alibaba. If a supplier asks you to pay another way, that protection is gone.
Why Do These Words Matter So Much?
Here is my own example. On my very first washi tape order, I didn't know to ask for a sample. I didn't ask about packaging or labels either. I ordered 100 rolls of each of three designs, which was the minimum back then. The rolls arrived shrink-wrapped with nothing on them to say they were mine, and the adhesive didn't stick.
None of that was really a vocabulary problem. It was a question problem. Sample, spec sheet and QC are just words. Behind each one is a question I didn't know to ask yet.
On order two I switched factories and ordered samples first. I have been with that second factory for years now. (And the minimum for most designs has come down to 50 rolls, which is a nice reminder that these numbers move.)
So please do not try to memorize this list. Bookmark it. Before you send your next factory email, scan it for the question you have not asked yet. One term at a time is plenty.
Where to Go From Here
If you are at the stage where these words keep popping up in factory emails, that is exactly why I wrote my book, Custom Products Made Easy. It is for artists who want a real product made and want a plain-language reference to keep next to the laptop while they work through quotes, samples and first orders. It is $9.99 on Amazon: Custom Products Made Easy.
Frequently Asked Questions
What does MOQ mean in manufacturing?
MOQ stands for minimum order quantity. It is the smallest number of units a factory will produce in one run, set because setup costs are the same whether the order is small or large. MOQs are often negotiable, especially if you are flexible on colors, finishes or timing.
What is the difference between FOB and DDP?
FOB means the factory's responsibility ends once your goods are loaded at the port, so freight, duties and delivery are on you. DDP means the supplier handles shipping and import duties all the way to your door, which usually costs more up front but removes surprise bills.
What is landed cost?
Landed cost is the real cost of one unit once it reaches you. Add the unit price, samples, freight, duties, broker fees and packaging, then divide by the number of units. It is almost always higher than the factory quote.
What should I include in an RFQ?
Name the product, dimensions, materials, colors, finish, quantity and where it is shipping. Attach your artwork or a spec sheet if you have one. Specific requests get specific, usable quotes back.
Do I need to know all these terms before contacting a factory?
No. Factories work with first-time customers constantly. Knowing the three core terms, MOQ, RFQ and landed cost, is enough to start, and you can look up the rest as they come up in replies.