MOQ (Minimum Order Quantity)

MOQ (Minimum Order Quantity) is the smallest number of units a supplier will accept in one order. Manufacturers and wholesalers set it so that production runs, setup and handling remain worthwhile for them.

Why it matters

MOQ directly affects how much cash a buyer must tie up and how much inventory risk they take on. A high MOQ lowers the unit price but can leave a small business holding unsold stock. Negotiating it, or choosing suppliers with lower minimums, is a common part of sourcing for startups, online sellers and private-label brands.

Example

Supplier quote
  Unit price at MOQ of 500 units:    4.00  -> 2,000 total
  Unit price at 2,000 units:         3.20  -> 6,400 total

A new seller who is unsure about demand may prefer the 500-unit order, even though the cost per unit is higher.

Common mistakes

• Focusing on unit price and ignoring the cash and storage the MOQ requires.
• Forgetting that MOQ can apply per product, per colour or size variant, or per order.
• Not asking whether a smaller trial order or sample is possible.
• Confusing MOQ with a stock keeping unit; see SKU for that.

Related

• SKU
• Dropshipping
• White label
• E-commerce

This page is general information written by our editorial team and updated when documentation changes. Servers and providers differ, so test changes safely first. See our editorial policy and disclaimer.