MOQ, Lead Time and Shipping Terms Explained

MOQ is two numbers, not one: the minimum per order and the minimum per design. Lead time is four numbers: production, finishing, packing and transit. Shipping terms are one choice: who arranges and pays for the main carriage. Get those three things in writing before you discuss price, because they change the price more than the price does.

This page is a glossary with worked examples, written for a first order.

What does MOQ mean?

Minimum Order Quantity — the smallest order a supplier will accept. In this category it is almost always expressed as two separate minimums:

Term	What it constrains	Why it exists
MOQ per order	The total across all designs	One picking, one packing list, one shipment
MOQ per design	The quantity of a single SKU	Setup and small-batch production cost

A worked example, using our own terms:

• MOQ per order: 12 pieces, mix-and-match across designs
• MOQ per design: 2 pieces
• So: 6 designs × 2 pieces = 12 pieces = one valid order
• But: 1 design × 12 pieces is also valid, and 12 designs × 1 piece is not

Ask for both numbers separately. A supplier who quotes only “MOQ 100” is either hiding the per-design minimum or has not thought about small buyers.

How do quantity tiers work?

Our quotation bands are applied to the order total, not to individual designs:

Tier	Pricing treatment	Applies to
12–23 pieces	entry quotation	Order total
24–99 pieces	mid-volume quotation	Order total
100+ pieces	volume quotation or project quote	Order total

Two things to know about tiers:

1. The quotation is written for the complete order, including its SKU mix and packaging, rather than calculated from a public percentage.
2. Quantity is not the only lever. Mix, packaging and shipping method can move landed cost more than the order band does.

How should a lead time be broken down?

A lead time is not a number, it is a sequence. Ask for it in components:

Stage	Typical range (stock designs)	Typical range (custom)
Dispatch / production	In-stock orders normally dispatch within 2 days	Custom production normally takes 30–60 days
Finishing / QC	Included in the written dispatch date	Confirmed per project
Packing	Included in the written dispatch date	Confirmed per project
Small-parcel transit	Normally 7–15 working days via our carrier	Normally 7–15 working days after dispatch
Freight / larger shipments	Quoted for the destination and shipment	Quoted for the destination and shipment

What “20 days” should mean	What it often means
A written dispatch date plus a separately quoted transit estimate	One unsupported all-in number

Always ask for the buffer separately. A supplier who quotes a lead time with no internal buffer is quoting an average, not a commitment.

Chinese New Year: production stops for roughly two to four weeks around the Spring Festival, and the effect on capacity runs longer — factories ramp down before and ramp up after. If your delivery window falls in the first quarter, plan around it explicitly.

Which shipping term should I ask for?

The Incoterm decides where your responsibility starts. Three you will meet:

Term	Supplier does	You do	When to use
EXW (ex works)	Makes the goods	Everything, including export clearance	You have a forwarder in China
FOB (free on board)	Arranges delivery to the named port and export clearance through the freight forwarder	Main carriage, insurance, import	The standard for bulk sea freight; our quotations commonly use FOB Tianjin or FOB Ningbo, Incoterms® 2020
Duty-inclusive carrier line	Carrier prepays duties and import taxes for an eligible small parcel	Receives the parcel	Small samples and light shipments when available

For an eligible light shipment, a duty-inclusive carrier line can provide a clearer delivered cost. This is a carrier service, not a DDP Incoterms agreement: QINGYUN does not act as the destination-country importer under this service. Bulk orders are commonly quoted FOB Tianjin or FOB Ningbo, as stated in the written quotation.

Note on small parcels: for light shipments we route through a carrier’s duty-inclusive line rather than posting direct. It costs a little more per kilo and removes most of the import friction for the buyer.

What are typical payment terms?

Method	Typical structure	Notes
T/T (bank transfer)	Standard wholesale orders are prepaid	Bank details and validity are stated on the quotation
PayPal	Available for eligible orders	Fees and payment timing are stated on the quotation
Custom projects	Deposit and balance by written agreement	The ratio is project-specific and is not published as a standard promise

For a custom project, do not infer a deposit percentage from an article. Use the payment schedule on the signed quotation or pro forma invoice, and request pre-shipment evidence as a written project step.

What is usually not included?

Check these before comparing quotes, because they are where a “cheap” quote gets expensive:

• Export packaging (cartons, pallets, desiccant) — usually included, but ask
• Testing reports — usually charged per SKU if you need a current one
• Customs duty and VAT — never included under FOB
• Insurance — not included unless named
• Bank charges — usually split, sometimes not
• Sample freight — quoted under the current B2B sample policy; it is not automatically credited against a later order

A worked example

A boutique requesting 24 pieces across 4 designs, shipped to Europe:

1. Order total 24 pieces → mid-volume quotation band
2. Stock status and any customization are confirmed before a dispatch date is issued
3. For an eligible small shipment, a duty-inclusive carrier line is quoted
4. Payment follows the written quotation; standard wholesale orders are prepaid
5. Landed cost = quoted goods + allocated freight + destination duty and VAT or tax

For a larger bulk shipment, the written quotation may instead use FOB Tianjin or FOB Ningbo. A duty-inclusive carrier service is not directly comparable with an FOB goods quotation.

Frequently asked questions

Can MOQ be negotiated? Sometimes, for a first order or for a design already in stock. Our standard stock-wholesale structure starts from 12 pieces per order and 2 pieces per design, subject to the written quotation. Custom formulas, custom packaging and newly developed products follow a separate project MOQ because formulation, tooling and print setup create fixed costs; these custom programmes normally start from 100 units, with better pricing at higher quantities.

That custom route can include a corporate-logo incense pendant, an anniversary incense-stick and bracelet gift box, Chinese-style wedding favours, or an incense-making DIY kit for an event. If your use case is different, send the concept and required quantity for a project assessment.

What is the difference between production time and lead time? Production time is the making. Lead time includes finishing, QC, packing and, depending on the supplier’s definition, transit. Always ask which definition is being used.

FOB or a duty-inclusive small-parcel line — which is cheaper? It depends on weight, destination and order value. Compare landed cost, not unit price, and remember that the small-parcel service is not a DDP Incoterms agreement.

Do you charge for samples? Our current B2B trial set uses a fixed sample policy and buyer-paid freight; it is not automatically credited against a later order. Eligibility and the exact contents are confirmed before payment.

What happens if the goods arrive damaged? Report within 7 days of receipt with photographs, before the packaging is discarded. That window is the standard for this category and it is short — open and photograph on arrival.

---

Next steps

• How our wholesale pricing works
• How to order samples and evaluate quality
• Importing incense products: a compliance checklist

Get a quotation with MOQ, lead time components and Incoterm spelled out. → Request Wholesale Pricing