Home Business A Business Owner’s Guide to Minimum Order Quantity (MOQ)

A Business Owner’s Guide to Minimum Order Quantity (MOQ)


Owning your own business is an amazing accomplishment, but sometimes it may seem like the details of the daily grind never stop. If this sounds like you, don’t worry—we’re here to demystify one crucial element of the business process: the minimum order quantity.

You can set one of these yourself, but here we’ll be talking more about the other side. When you’re looking for suppliers for your business, how do you know when the minimum order quantities are worth it? Keep reading to find out.

What Is Minimum Order Quantity?

Minimum order quantity, or MOQ, is the lowest possible amount of a certain item that you can order from a supplier. These can exist for just about any kind of product out there, but you’ll encounter MOQs more often as a business owner than as a regular shopper.

This is because the suppliers you work with will likely operate on a large scale. They will sell you items at a lower price because you’re getting them wholesale, but they need to know they’re generating enough profits for the sale to be worth it.

When to Work With Minimum Order Quantity

When you’re deciding between suppliers, you might see minimum order quantity as a bad thing at first. The policy might push you to spend more money upfront than you expected to. And when you’re just starting out, this can seem daunting.

But in the long run, a supplier with a minimum order quantity might save you money if they have a good unit price. So when you’re working with items you know you’ll always need (and when storage isn’t a big issue), you won’t need to worry so much about the MOQ.

For example, let’s say you’re trying to choose a product packaging supplier. Since packaging is one of your basic necessities, it tends to be a better choice to think about long-term savings. So make regular orders, meet the MOQ if there is one, and save money over time.

MOQ Tips for Better Business

There are still times when minimum order quantity can get in the way or when you’ll want to look for a lower MOQ.

For example, let’s say you’re expanding to a new product for your business. You’re not quite sure what the demand will be, so it makes sense to look for suppliers with lower MOQs.

This way, you can make adjustments based on how the business is doing. And if you need to order more, it won’t take a large chunk out of your budget.

And if the item is perishable or hard to store, these are also important reasons to look for low MOQs.

Good Luck Out There!

Navigating the business world can be tricky, but getting your supplies doesn’t have to be. It’s all about balancing the long game with the present moment. The more stable a certain part of your business is, the less you’ll have to worry about minimum order quantity.

For more business tips to help you grow, check out the rest of our blog!


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