Have you ever wanted to launch a new product, but your supplier requires you to buy hundreds of units? That limit is called MOQ. It may seem like a barrier, but if you understand it well, it becomes a strategic tool.
What is MOQ?
MOQ (Minimum Order Quantity) is the minimum number of units a supplier requires you to purchase in order to accept an order. For example, if the MOQ is 100, you cannot order fewer than 100 units.
Its purpose is to ensure profitability in production or distribution for the supplier.
Why does MOQ exist?
Manufacturing or preparing products involves costs. If an order is too small, the supplier may lose money. MOQ ensures the process is profitable and efficient.
In short, it protects the supplier’s margins and helps organize production.
Types of MOQ
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By units: minimum number of identical products
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By order value: minimum total order amount
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By mixed batch: combination of products to reach the required quantity
Advantages of MOQ for your business
Although it may seem like an obstacle, MOQ can work in your favor if used correctly:
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Reduces cost per unit
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Makes inventory planning easier
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Allows you to negotiate better terms
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Prevents unnecessary or inefficient orders
MOQ boosts efficiency when you buy the right amount at the right time.
How to manage MOQ effectively
1. Know your real demand
Before accepting a high MOQ, analyze your sales. Will you be able to sell all that stock?
2. Negotiate with the supplier
If you can’t reach the minimum, propose purchasing several different products in a single order.
3. Calculate your storage capacity
There’s no point in buying more if you can’t store it or move it quickly.
4. Automate replenishment
With a good system, you can anticipate when to reorder before stock runs out.
MOQ and logistics: a combination that can scale
Working with MOQ requires agile logistics. At Amphora Logistics, we help you manage your inventory from day one. Our ecommerce fulfillment service and WMS system allow us to receive, store, and distribute orders in record time—even with large volumes.
MOQ doesn’t have to slow you down. If you understand how it works and integrate it into your logistics strategy, it can be exactly what you need to grow without losing control.
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