Is Your Order Too Small to Import from China? A Break-Even Test

"I want 20 units" and "my budget is US$300" are two of the most common opening lines in a first sourcing inquiry, and they lead to the same problem. The product may be cheap in China, but the cost of getting one shipment to your door has a floor that does not move with quantity. This guide shows which costs make up that floor, how to test whether your order clears it, and what to do if it does not. It does not repeat how to choose a transport mode or calculate duty; those are covered in the guides linked below.

Why small orders cost more per unit#

Small orders are expensive per unit because a large part of the cost is charged per shipment, not per unit. A customs declaration, a bank transfer or a pickup costs about the same for 20 units as for 500, so with 20 units each unit carries one twentieth of it.

Landed cost has two kinds of lines. Variable costs grow with quantity: the product price, freight per kilogram or cubic metre, and duty and VAT charged as a percentage of value. Fixed costs are charged once per order or shipment. Our landed cost guide lists every line; the point here is which of them are fixed, because those decide whether a small order makes sense at all.

The fixed costs that do not shrink#

These are the main per-shipment costs. Most have a minimum or a flat fee, so they stop falling once your order drops below a certain size.

Not every order pays every line. A courier parcel under a small-value regime may skip the broker; a Yiwu stock purchase may need no sample. But almost every order pays at least clearance, a payment fee and a minimum freight charge.

The break-even test#

Importing pays off when your landed cost per unit is lower than the price a local wholesaler or importer would charge you for the same product. Two formulas cover it:

Landed cost per unit = (fixed costs per shipment ÷ units) + variable cost per unit

Break-even quantity = fixed costs per shipment ÷ (local wholesale price − variable cost per unit)

If the local price is at or below your variable cost per unit, there is no break-even: importing never wins at any quantity, and the product is not worth sourcing from China for your market.

Worked example (illustrative numbers)#

The figures below are illustrative round numbers chosen to show the method. They are not market rates or quotes for any product or route.

Assume a gift set at US$3.00 in China, US$2.00 per unit of variable freight and import tax, so US$5.00 variable cost per unit. Fixed costs per shipment are US$300 (clearance, handling, payment fee, one sample). A local wholesaler sells the same set for US$9.00.

Break-even quantity = 300 ÷ (9.00 − 5.00) = 75 units.

At 20 units the fixed costs alone (US$300) are five times the value of the goods (US$60). Doubling the order does not double the cost; it halves the fixed cost per unit. Run the same table with your own quotes, and note that above certain values the regime changes (in Peru, crossing US$2,000 FOB brings in the mandatory customs agent), which adds a new fixed cost.

Supplier MOQ vs your quantity#

The second barrier is the supplier's minimum order. A factory that quotes MOQ 200 is not being difficult; it is telling you that below 200 its setup time, material lots and packaging runs cost more than the order earns. Asking it to make 20 rarely works, and if it agrees, the unit price usually rises enough to erase the saving.

The distinction that matters is stock vs custom:

• Stock items are already made: standard colours, generic packaging, no logo. Sellers on 1688 and in Yiwu often sell these by the carton or in mixed lots of a few dozen pieces.
• Custom items (your logo, a combined set, special packaging) need a production run, and the MOQ applies. A gift set that combines two products from two factories in custom packaging is a custom item, even if each component is stock.

Ways to bring an MOQ down, and when to stop trying, are covered in how to negotiate MOQ. For a 20-unit first order, the practical answer is usually to change the product to a stock version rather than negotiate.

Options when your order is below break-even#

You have six realistic options. Most buyers combine two or three of them.

Courier regimes are the most country-specific option. Peru exempts small courier shipments up to a value threshold and limits splitting; Mexico taxes courier parcels from China from the first dollar. Check the rules in importing from China to Peru and import taxes from China to Mexico before you plan around them, and compare modes in shipping small orders from China to Latin America.

Decide in 10 minutes#

Use this checklist before you send an inquiry. It will tell you whether to import now, change the order, or buy locally.

1. Write down the quantity and budget you actually have, including money for freight and taxes, not only for goods.
2. Find the local wholesale price for the same or a similar product from an importer or wholesaler in your country.
3. Decide stock or custom. If you need your logo or a custom set, expect an MOQ in the hundreds.
4. List your fixed costs per shipment: clearance or broker, handling, payment fee, samples, inspection. Use real quotes where you have them.
5. Estimate variable cost per unit: product price plus freight and taxes per unit.
6. Calculate the break-even quantity with the formula above.
7. Compare. If your quantity is below break-even, pick an option from the table: combine products, order samples, or buy locally first.
8. Check your country's threshold for small shipments and whether a commercial order qualifies.
9. If you go ahead, send a complete request with product, specification, quantity and destination, as described in how to write an RFQ to Chinese suppliers. A specific small request is easier for a supplier to answer than a vague one.