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Understanding MOQ (minimum order quantity)

MOQ, the minimum order quantity, is the smallest order a supplier will accept. It trips up many small buyers. Here is what it means and how to work with it.

Why suppliers set an MOQ

Setup, materials, and handling cost the same whether they make ten units or a thousand. The MOQ is the point where an order is worth their effort.

How to lower an MOQ

Offer a higher price per unit for a smaller quantity, combine products into one order, or commit to repeat orders. Some suppliers flex the MOQ for a good long-term buyer.

Watch your cash and stock

A big MOQ ties up cash and shelf space. Only commit to a quantity you can sell in a reasonable time, or the saving is lost to dead stock.

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