Copyright© 2024 Tasty - All Rights Reserved.
What is the MOQ? The minimum order quantity (MOQ) requirement defines the lowest quantity of a certain product (for example, 500 pieces) that a supplier is willing to sell. If the importer cannot meet the MOQ requirement, then the supplier is unwilling or unable to go into production.<\/span><\/p>\n In this article, I explain why there is a MOQ requirement for <\/span>low moq clothing manufacturer<\/b><\/a> and what you can do to reduce the number of units you need to buy.<\/span><\/p>\n The MOQ requirement is the minimum number of units you need to order from a supplier. It can be defined by order, by product, by material or by color. For example, if a supplier sets his MOQ at 500 pieces, he must purchase at least 500 pieces before he can accept your order.<\/span><\/p>\n The MOQ is often specified on the suppliers’ Alibaba page or website. You can also contact them directly to ask for your MOQ. Please note that the MOQ is fluid as it varies based on a variety of factors. Besides, there are also different MOQ to follow, not just one.<\/span><\/p>\n A minimum order value is the lowest value of goods that a supplier is willing to sell per order or per item. If the minimum order value is set to $5,000, they will not accept orders below this amount. That said, manufacturers almost exclusively set a minimum amount rather than a minimum value.<\/span><\/p>\n Most Chinese manufacturers tend to operate on thin profit margins. Often as low as 3-4%. Low profit margins force the supplier to produce a large number of products to break even.<\/span><\/p>\n The manufacturer is not always responsible for the high minimum order quantity requirements. Chinese suppliers tend to keep a minimum stock of materials and components.<\/span><\/p>\n As such, they must purchase materials and spare parts from subcontractors, upon request. This, in turn, requires the factory to be able to meet the subcontractor’s MOQ.<\/span><\/p>\n This also explains why different items and different materials (or even colors of the same material) have different MOQs. With some effort, it is possible to determine how the MOQ can be reduced by identifying the materials and components that the supplier keeps in stock or can purchase at lower minimum order volumes.<\/span><\/p>\n However, there are some limitations to this approach. For example, materials that comply with REACH or other chemical regulations must be purchased in larger volume.<\/span><\/p>\n Since product compliance is not optional, circumventing the MOQ requirement by using “standard materials” may not always work.<\/span><\/p>\n It would be very easy for a factory to sell low volumes if they only kept ready-to-use units in stock. However, they rarely do. At least not when it comes to “export-ready” products. In fact, you can go to Taobao.com and find tens of thousands of vendors, all with ready-made products.<\/span><\/p>\n But commercial products in China are produced for the domestic market. This is a problem, because these products, for obvious reasons, are not manufactured in accordance with product labeling requirements and safety regulations abroad (i.e., in the US or EU).<\/span><\/p>\nWhat is the minimum order quantity (MOQ)?<\/b><\/h2>\n
How to know the MOQ of a supplier?<\/b><\/h2>\n
What is the minimum order value?<\/b><\/h2>\n
1. Low profit margins require higher volumes<\/b><\/h2>\n
2. The MOQ of your suppliers reflects the MOQ set by your material subcontractors<\/b><\/h2>\n
3. Chinese suppliers generally do not keep products in stock<\/b><\/h2>\n