min order quantity

min order quantity (MOQ) refers to the minimum number of units a supplier is willing to sell to a customer in a single order. For businesses looking to source products, understanding the MOQ is crucial as it can affect both pricing and inventory management. Typically, suppliers set a MOQ to ensure that it is cost-effective for them to produce and ship products. For smaller businesses or startups, the MOQ may be a challenge, as purchasing large quantities can tie up capital and increase storage costs. However, negotiating with suppliers for smaller MOQs or finding suppliers who specialize in smaller batch orders can help overcome this barrier. MOQ can vary greatly depending on the product, supplier, and industry. When sourcing from international suppliers, including those on platforms like Alibaba or AliExpress, it’s important to consider shipping costs, lead times, and tariffs in addition to the MOQ to get a complete picture of the overall cost.