Understanding Minimum Order Quantities when Product Sourcing

Interested in product sourcing from Vietnam, China?

You’ve no doubt come across the terms ‘Minimum Order Quantities’ or ‘MOQ’ as you’ve researched possible manufacturing options for your products. So precising does this mean? Sometimes you just want product samples, not order a container load! We explain what it is and how to address product sample ordering.


What Is MOQ / Minimum Order Quantities?

Minimum order quantity refers to the minimum number of items you can buy at a time. It can apply to almost any form of goods, from toys and clothing to air conditioners and building materials.

When you’re a retailer, you must consider any product’s minimum order quantity. If something catches your eye, but there’s an unusually high expected order size, it may not be worth pursuing.

What is the minimum order quantity? The term refers to the customers of manufacturers and wholesalers. Minimum order quantities are given by manufacturers, who then sell their goods to wholesalers. This means wholesalers use different MOQs (minimum order quantities) for their clients (retailers). Retailers then go on to sell much smaller amounts to consumers. It isn’t typical for retailers to sell minimum order quantities unless things are packaged, e.g. a six-pack of picnic plates.

Before modifying design and production specifications, you need to know the lowest number of items you can sell. A more significant order number means less overhead because it cuts production costs. And large order numbers are easier to manage when it comes to cash flow.

To remain competitive in China, it is crucial to have a sufficient amount of MOQs. This makes factories easier and more efficient by making them sell to people rather than creating new products.

Setting a minimum order quantity (MOQ) saves manufacturers from wasting time with people who are not serious about making a purchase. Setting the MOQ helps avoid ‘tyre kickers’ who don’t want to purchase the product.

Bulk buying will save you time and money, as you’ll only have to go through ordering processes once and wait for one delivery. And if you have the storage space for your orders, bulk buying is worth it.

Can I order product samples?

You will find a product for your business, but be nervous about the minimum order quantity. It is easy to get a sample of an item before ordering more. Once you are happy with the product, order it online. The sourcing team at One Source Global always advises clients to check out the product sample before making a more significant purchase.

The minimum order quantity is just a guideline.

The price of a product can be between $10-15, and there may be a MOQ, for example, MOQ 10,000. Ordering a large volume of products will lower the price per unit. Increase the number of units you purchase, and the price will edge closer to $10 per unit. If you want to advance your trading strategy, you can use a company that places orders for buyers. This allows you to buy less per order than with a single. Before buying, make sure they have the exact product you want and double-check the fine print. If you’re sourcing a new product, it may make sense to start with the smallest MOQ possible so that if it doesn’t sell, you haven’t lost much.


What To Do?

You don’t want to buy things because they’re cheaper (don’t forget to keep this four tips in mind when product sourcing). After all, that might mean they’re poor quality. Make sure you’re buying from a reliable manufacturer, and speak to One Source Global if you have any questions. For more information on this topic, contact us at One Source Global.

Start with a Complimentary Obligation Free and Confidential Consultation today >>

More News and Tips.