Price Negotiation, MOQ & OEM Contracts
Hands-on tactics you can use right away

Hi, this is GreenFrog Seoul.

In our last post, we covered how to get samples and verify factories. Once you've reviewed the samples and decided "this is the factory" — the real work begins.

That means price negotiation, MOQ adjustment, and OEM contracts.

"I got the quote and it's expensive... can I haggle?"
"They say the minimum order quantity (MOQ) is 1,000 units. That's way too many..."
"I want to add my logo — how do OEM contracts work?"

We hear these questions all the time. Today, we'll walk you through negotiation, MOQ, and OEM contracts — practical know-how you can put to work immediately.

1. Listed Prices on 1688 Are Just Starting Points — Negotiation Is Standard

A common misconception is that the price shown on 1688 is the final price. It's not. The listed price is simply a "public quote" — the actual transaction price is determined through negotiation.

There's always room to negotiate, especially in these situations:

• Your order quantity is well above the MOQ
• You mention the possibility of long-term, recurring orders
• You simplify packaging or reduce product options
• You place orders during off-peak seasons (around Chinese New Year, summer slow periods)

2. Price Negotiation — How Much Can You Actually Save?

It varies by factory and product, but here are realistic benchmarks based on experience:

Sample Negotiation Script (Chinese)

你好，我对你们的产品很感兴趣。
计划首批订购 500 个，后续每月稳定补货。
现在报价 10 元，能否给到 8 元？
如果价格合适，我们希望长期合作。

(Translation: "Hi, I'm very interested in your product. Planning an initial order of 500 units with steady monthly reorders. Current quote is 10 yuan — can you do 8 yuan? If the price works, we'd like a long-term partnership.")

3. MOQ (Minimum Order Quantity) — How to Get It Lower

MOQ varies enormously from factory to factory, and it's negotiable more often than you think.

Proven Strategies to Reduce MOQ

1) Request a "test order"
Frame it as: "This is a small test batch for the Korean market. If it sells well, we'll place a bulk order right away."

2) Offer to use existing stock materials
Even for OEM products, if you agree to use the factory's existing fabric or components in stock, the MOQ drops significantly.

3) Consolidate to a single color or option
5 colors x 100 units is harder for a factory than 1 color x 500 units. Simplify your SKUs.

4) Order during off-peak seasons
When factories have idle capacity, they're far more willing to accept smaller orders.

5) Accept a slight price increase for sub-MOQ orders
Offering something like "I'll take 300 instead of 1,000, and I'll pay 20% more per unit" is a trade-off that factories frequently accept.

4. OEM Contracts — Always in Writing, and Never Without These Items

"We agreed over WeChat — what's the problem?" More common than you'd think. But if something goes wrong, chat logs carry very little legal weight. Always get a written contract — specifically a Proforma Invoice (PI).

Essential Items Every PI Must Include

• Product specifications — Material, dimensions, color, weight, and functional details
• Quantity and unit price — Total amount and payment currency (USD/CNY)
• Logo and packaging details — Printing method, placement, size, and Pantone color codes
• MOQ and lead time — "Production completed within XX days after order confirmation"
• Payment terms — Deposit/balance split and payment schedule
• QC standards — Acceptable defect rate (typically 2–3% AQL), rework/refund clauses
• Shipping terms — Incoterms (FOB, CIF, etc.) clearly stated
• Mould ownership — For custom OEM tooling, who owns the mould?
• IP protection clause — Explicitly state that the factory cannot sell your design to other buyers

5. Payment Terms — How to Send Money Safely

Payment fraud with Chinese factories is real. This year alone, we've heard multiple cases of factories that collected deposits and disappeared.

Safe Payment Structures

Payment Methods at a Glance

• T/T (Telegraphic Transfer) — Most widely used, low fees, but irreversible once sent
• Alipay B2B — Convenient for small-to-mid orders, but has transaction limits
• Payoneer / WorldFirst — USD transfer alternatives with favorable exchange rates
• L/C (Letter of Credit) — Maximum safety, complex procedures, suited for high-value orders

Key Takeaways

1. 1688 prices are starting points — Negotiation is standard practice, and 10–25% discounts are common
2. MOQ is almost always negotiable — Test orders, simplified options, and off-peak timing are your levers
3. OEM contracts must be in writing (PI) — Cover specs, Pantone codes, packaging, lead time, and mould ownership
4. 30/70 payment split is the standard — Pay the balance after B/L confirmation when possible
5. First orders should always be small test runs — Build trust, then scale up