Currently, order fragmentation is on the rise, with small-scale wholesale distributors of promotional items increasingly importing directly from China. However, the challenge is that these fragmented orders, due to low quantities or customization, often don’t meet the factory’s MOQ. Are there effective solutions?

I’ll share 4 methods in this article which are based on my 18+ years of experience in the promotional products industry, to address this issue, which include: inquiring with trading companies directly, using neutral English packaging or adhesive labels, offering to pay an additional handling fee proactively, and ordering at the MOQ and shipping in batches.

Inquire with trading companies directly rather than factories

You might be wondering, does it make a difference? Even if I inquire with trading companies directly, what can I achieve? My order quantity will still not meet the MOQ.

Well, it does make a significant difference! Typically, when dealing with factories, it difcuttle to convince them of the potential for a long-term partnership, especially when you’re placing an initial small trial order.

However, the situation is entirely different when it comes to trading companies. Take our company, for example. In our 16 years of history, we have collaborated with over 260 factories. Because we have built a foundation of cooperation and trust with these factories, the majority of them are willing to assist us in exploring new markets and customers by lowering the MOQ.

While it’s true that purchasing promotional items through trading companies may come with some additional costs, if it can solve the challenges you’re facing, why not go for it? Moreover, most trading companies excel in communication efficiency and service awareness compared to typical factories.

Utilize neutral English packaging or adhesive labels

Of course, perhaps this order isn’t so urgent for you. Or maybe your profit margins are indeed limited, and you prefer to source directly from the factory. In that case, I recommend opting for the factory’s existing neutral English packaging.

Neutral English packaging doesn’t feature any logos or trademarks but clearly labels the product with its name, features, and even usage instructions in English. As the world’s most widely spoken language, neutral English packaging is sufficient for your initial test sales in the local market and can save you a significant amount on packaging costs.

If you still want to display your logo on the packaging, such as on boxes or bags, you can also ask the factory to print the logo on adhesive labels and affix them to the boxes. This method can save a significant amount on printing and plate-making costs.

In sum, nearly all factories have such neutral English packaging for their regular products. For factories, this type of packaging serves as a compromise to accommodate customers with smaller orders. So, when you encounter MOQ constraints, try asking the factory if they offer such packaging. I believe you should be able to get a satisfactory response.

Proactively offering to pay the additional handling fee

You might be thinking, ‘I don’t have any special packaging requirements.’ But this time, I’m looking to purchase promotional T-shirts, and I have a slogan that needs to be printed on them. I can’t just stick an adhesive label on a T-shirt, can I?

Indeed, this is the biggest challenge for most custom promotional item orders that fall below the MOQ. So, let’s get back to the essence of the problem: why are factories reluctant to accept orders below the MOQ? Undoubtedly, it’s because of cost, right? If that’s the case, then I suggest you have an open and honest conversation with the factory, if you can convince them, that’s great! Even if you can’t persuade the factory, you can still proactively offer to pay an additional handling fee to compensate for any extra material or production costs they might incur.

Please note that I mentioned ‘proactively offering to pay an additional handling fee.’ This proactive approach demonstrates your sincerity and makes the factory feel understood, thus fostering a positive outlook on future cooperation.

In my personal experience, when I communicate with factories in this manner, they view me as a professional and trustworthy buyer. In fact, some factories have voluntarily waived the processing fee and cooperated actively to fulfill smaller quantity orders.

Order at the MOQ and ship in batches

You may have high expectations for the market prospects of the promotional items you’re purchasing this time. However, the reason the initial trial order quantity can’t meet the MOQ might be that your warehouse may not have the capacity to store so much inventory at once, or your cash flow might not be as abundant at the moment. In this case, I suggest negotiating with the factory to still place the order at the MOQ but request their assistance in warehousing a portion of the stock to ease your burden.

Typically, this is a workable solution for factories. For them, it keeps the production process smoother, and all they have to do is reserve some inventory for you for a few months.

However, when adopting this approach, there are still a few points to consider:

1. You may need to pay a deposit for the goods kept in the factory warehouse, usually around 30% of the total value of that batch of goods.

2. Since shipments are done in batches, whether by air or sea, the overall shipping costs for the entire order may increase, which is something you’ll have to factor in.

3. Ask the factory to provide photos or videos to ensure your goods are properly stored. Additionally, from late May to June, it’s the rainy season in the southern part of China. The humid weather can affect the packaging of goods. If your supplier is located in the southern region, be particularly mindful of this and request the factory to take anti-humidity measures.

Conclusion

In my experience, the key to solving the issue of orders falling below the MOQ is ‘communication.’ Throughout my career, I’ve faced this challenge multiple times. I believe that by approaching suppliers with sincerity, not only regarding the MOQ but also other issues can be resolved.

Lastly, I’m sharing an article I wrote titled ‘How to Negotiate MOQ with China’s Promotional Items Suppliers’ and hope it can help you in your communication with Chinese suppliers.