Below is a glossary of terms for those new to custom factory manufacturing.

Country of origin markings: Every nation has regulations about marking each manufactured product with the country of origin. For example, US regulations require each item be marked in a way that is permanent and clearly visible to the buyer at the time of purchase. It is important to make sure your product complies with these regulations and also any regulations of the country of import.

Moldings: Items that are a unique shape will require that a mold be produced for the first production run. For example, if you would like to produce a unique plastic case for which there is no existing mold, you will need to purchase a specially designed mold for the first production run. The price of the mold can vary from a few hundred dollars to thousands of dollars depending on factors such as size, material and production run.

Order size and pricing: Every product has a minimum order quantity based on the value of the order, the type of manufacturing and minimum purchase requirements from the material vendors. For example, products that do not require molds such as handbags have smaller production runs that may only be in the hundreds. For plastic products, which usually require molds and have higher material purchase requirements, the minimum production run will most likely be much higher.

To reduce unit costs, strive to make each production run as large as possible since higher production runs result in lower unit costs.

Cost, Insurance, Freight (CIF): This price includes the cost of the goods as well as shipping and insurance to the requested port. For example, CIF Los Angeles is the price for the cost of the goods, shipping and insurance until the goods reach the designated port in Los Angeles.

Ex: This refers to the price of the goods at the indicated point of origin. For example, the ex factory price is the price of the goods at the factory gate.

Free on Board (FOB): This price includes the cost of producing, packing and loading the goods onboard a vessel. For example, FOB Shanghai is the quoted price for all expenses in producing the goods and loading them on a shipping vessel in Shanghai as well as clearing the goods for export. From that point, the buyer is responsible for all shipping and insurance costs.

Minimum Order Quantity (MOQ): This is the minimum quantity that can be purchased for any product.

US Dollars (USD): Pricing is always set in U.S. dollars regardless of the country of production or the destination of the goods.