What is MOQ (Minimum Order Quantity)?
The smallest quantity a supplier will accept in a single order.
In detail
MOQ stands for Minimum Order Quantity. Suppliers set a minimum because production, packaging and transport all have fixed costs, and very small orders are not worthwhile. The minimum can be defined by quantity, value or number of cartons.
For example
A packaging box supplier requires at least 5,000 units per order. Even if only 2,000 are needed this month, 5,000 must be bought at once.
How companies use it
When purchasing, consider the MOQ together with actual usage and inventory carrying cost. You can negotiate with the supplier, combine the order with other materials, or look for a more flexible supplier.
Common misconceptions
Buying in bulk up to the MOQ just because the unit price is low. The surplus stock ties up capital and warehouse space, and may end up as unsellable dead stock, making it more expensive in the end.
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