Lara GuevaraSupply Chain expert (Product and Service)

Negotiate MOQ and Payment Terms Right Now

18 Jun 2026 · 1 min

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0:34

Lara Guevara and a co-speaker break down how to negotiate with overseas manufacturers. China typically requires 300-500 unit minimums, Vietnam around 1,000. Push for low MOQs on new designs to test the market, and structure payments as 30% upfront with 70% later to keep cash flowing.

Another negotiation tactics that I would ask you to start doing is the MOQ and payment terms. So first, the MOQ is very important right now, especially if you want to continue launching new designs.
Just for anybody who's listening right now, MOQ, who might not know, MOQ is minimum order quantity. Yes, that's right. And for a factory to be profitable on the order that you're putting in, there needs to be a minimum. Otherwise it doesn't make sense for them to even do it. In the bag world, We see it anywhere in China from like 300 to 500 in my experience.
Yeah.
But it can go up. I was actually just talking to someone today who's producing in Vietnam and Lara, their MOQ is 1,000. So, you know, there's a large variation, but go on. What do you think that we should be doing in regards to our MOQs?
Yeah, so it is very important that you have a low MOQ for new products. So that you can test it first before you order more. And at the same time, the payment terms so that it can help with the cash flow. These two are commonly not being negotiated by DTC as well. So if they gave you 30/70 payment terms, that's the first steps. You know, there could be net 30, net 60 at some point. And so if they are willing to— Um, you know, discuss business, um, business with you, then you can share that information with them and under— and try to let them understand why it's important to have that payment terms in this scenario right now. And they are aware of the Middle East wars, then maybe you can get it now. If you didn't get it last month, 2 months ago, 3 months ago, last year, try it again.