Small batch and low-volume manufacturing: MOQ, tooling, lead time and landed cost
Confidence 4/5 Established practice
The honest answer to "can I manufacture 100 units in China" is yes, but not by the process you were picturing. Small runs work when the process has low fixed cost — machining, silicone, sewing, simple assembly — and fail when it does not, because at low volume the set-up cost is spread over too few units. The correct move is usually to change the process for the first run and change it back when volume arrives.
Quick answers
| Minimum order quantity | As low as 1 for machining, 3D printing and hand assembly. 50–200 for silicone and cut-and-sew. 300–1,000 where a printed plate or a simple tool is involved. 1,000+ for injection moulding and die casting, because those tools are the expensive kind. |
| Lead time | Small runs are dominated by set-up rather than production: usually the same 7–20 days of preparation as a large run, with fewer production days. |
| Tooling | The whole point of small-batch is avoiding a hard tool. Soft tooling — silicone moulds, urethane casting, printed jigs — costs USD 100–800 and may last a few hundred parts, which is often enough to validate demand. |
| Unit cost | Expect two to five times the volume unit price, and expect the set-up to be a visible and separately quoted line rather than hidden in the unit cost. That visibility is the point: it tells you what volume would buy. |
| HS classification | Depends on the process, not the order size. Small machining runs are classified by the finished part exactly as a large run would be: 7326.90 for other iron or steel articles, 7616.99 for other aluminium articles. Volume changes the price and the process, never the classification. |
| Certification | Unchanged by volume. A sample unit and a production unit need the same compliance, and a small first order is the cheapest possible moment to discover a certification requirement. |
| Duty | Small shipments can fall under a destination country's de minimis threshold and clear duty-free, while the same goods in a larger quantity attract duty and formal entry. The US threshold is USD 800 per shipment and the EU has its own low-value regime with VAT treatment that differs from duty treatment. This can change the landed cost of a trial run fundamentally, so it is worth checking the threshold for the specific destination before concluding that a small run is disproportionately expensive. |
Common mistakes
- Choosing a process because it is the one the factory has, rather than the one the volume suits.
- Letting set-up cost hide inside the unit price, which makes the volume trade-off invisible.
- Re-tooling at the crossover instead of planning the transition in advance.
- Assuming a small order gets the same attention as a large one; it needs a factory for which it is not trivial.
- Overlooking de minimis thresholds, which can change the entire landed cost for a small shipment.
Detailed answers
Sources
- Low-volume manufacturing process selection — Industry practice; process crossover points are widely documented
- De minimis thresholds and informal entry — US Customs and Border Protection
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