{"id":7929,"date":"2021-06-09T14:06:13","date_gmt":"2021-06-09T06:06:13","guid":{"rendered":"https:\/\/newsbites.hktdc.com\/?p=7929"},"modified":"2021-06-30T16:55:59","modified_gmt":"2021-06-30T08:55:59","slug":"moq-minimum-order-quantity-meaning","status":"publish","type":"post","link":"https:\/\/newsbites.hktdc.com\/tips\/moq-minimum-order-quantity-meaning\/","title":{"rendered":"What Is Minimum Order Quantity? How to Find Out your MOQ in 2021?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"7929\" class=\"elementor elementor-7929\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b38cc3c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b38cc3c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b973d91\" data-id=\"b973d91\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-63c556d elementor-widget elementor-widget-heading\" data-id=\"63c556d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Introduction\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4690773 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4690773\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ad59351\" data-id=\"ad59351\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-40b4fb5 elementor-widget elementor-widget-text-editor\" data-id=\"40b4fb5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Every business owner would want to take in every <\/span><a href=\"https:\/\/research.hktdc.com\/en\/analysis-and-news\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">business opportunity<\/span><\/a><span style=\"font-weight: 400;\"> that comes across. Who would want to turn a customer away? But the truth is, not every deal you make is suitable for your business.<\/span><\/p><p><span style=\"font-weight: 400;\">In retailing and <\/span><a href=\"https:\/\/research.hktdc.com\/en\/analysis-and-news\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">sourcing<\/span><\/a><span style=\"font-weight: 400;\">, this is especially true. Businesses &#8211; suppliers, manufacturers, or even shop owners regardless &#8211; should make careful consideration for how much product to sell to customers.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">On the one hand, selling too little could lose capital on holding products. On the other hand, turning away customers would be missed opportunities of making small but profitable deals.<\/span><\/p><p><span style=\"font-weight: 400;\">So how do we strike a balance? This is why we need a Minimum Order Quantity (MOQ). An MOQ sets the cutoff for the total amount you sell with. With a fixed minimum requirement, you can manage the profit margin more easily or negotiate further on other costs.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-72eb853 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"72eb853\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-242bf02\" data-id=\"242bf02\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6578946 elementor-widget elementor-widget-heading\" data-id=\"6578946\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is Minimum Order Quantity (MOQ)?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a3d935c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a3d935c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28e3e9d\" data-id=\"28e3e9d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-11529d3 elementor-widget elementor-widget-text-editor\" data-id=\"11529d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/dictionary.cambridge.org\/us\/dictionary\/english\/moq\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">MOQ stands for Minimum Order Quantity.<\/span><\/a><span style=\"font-weight: 400;\"> A minimum order quantity is the lowest requirement of units purchased at one time. MOQ is set either on the cost or on units.<\/span> <span style=\"font-weight: 400;\">This technical term is often used by manufacturers or suppliers for a production run. It helps online sellers to determine the least amount of product they are willing to supply or manufacture in a single order.<\/span><\/p><p><span style=\"font-weight: 400;\">Examples of MOQ:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>MOQ for manufacturers<\/b><span style=\"font-weight: 400;\">: If a manufacturer sets his MOQ as 1,000 units, that means buyers must place an order of at least 1,000 units of inventory at a time.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>MOQ for wholesale or retail partnerships<\/b><span style=\"font-weight: 400;\">: if a brand has an MOQ requirement, then the wholesale or retail partner will have to place an order of at least 50 units or $500 worth of product to be purchased together.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">In some cases, suppliers are flexible and can change the MOQ. In cases of long-term partnerships between suppliers and retailers, it is likely to have negotiations on altering MOQ.<\/span><\/p><p><span style=\"font-weight: 400;\">There are no fixed rules for MOQs or a fixed MOQ for all &#8211; every supplier and business type may have different setups.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b85b190 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b85b190\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0e2fa14\" data-id=\"0e2fa14\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e6800aa elementor-widget elementor-widget-heading\" data-id=\"e6800aa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Pros and Cons of MOQ\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2cdd7ea elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2cdd7ea\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c5a195a\" data-id=\"c5a195a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-020d7bd elementor-widget elementor-widget-heading\" data-id=\"020d7bd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Pros\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bc04e6a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bc04e6a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-47a0543\" data-id=\"47a0543\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-39c17d8 elementor-widget elementor-widget-text-editor\" data-id=\"39c17d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The buyer\u2019s best use of MOQ is to lock down a unit at its best price. The prices can be greatly discounted once a minimum order quantity is agreed on. This augments the margin of profit per unit.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-adddb2d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"adddb2d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-510943f\" data-id=\"510943f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a6b8d0b elementor-widget elementor-widget-heading\" data-id=\"a6b8d0b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Cons<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c94a1e7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c94a1e7\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da22936\" data-id=\"da22936\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aa152f7 elementor-widget elementor-widget-text-editor\" data-id=\"aa152f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">MOQ may pose challenges to <\/span><a href=\"https:\/\/smesupport.hktdc.com\/en\/s\/sme-centre\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">small business owners and retailers<\/span><\/a><span style=\"font-weight: 400;\">. As the MOQ sets a higher requirement to kickstart a deal, many retailers may have to order unnecessary units to fulfil the MOQ. This would drive up the upfront cost.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-576e6a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"576e6a4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d228d65\" data-id=\"d228d65\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8971061 elementor-widget elementor-widget-heading\" data-id=\"8971061\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Use of Having a MOQ\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-79287a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"79287a4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1e6d124\" data-id=\"1e6d124\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6460014 elementor-widget elementor-widget-text-editor\" data-id=\"6460014\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Why do suppliers set MOQ? Does it not make it harder to do business and discourages retailers to go into negotiations with them?<\/span><\/p><p><span style=\"font-weight: 400;\">What if the retailer demands 90 units and the supplier insists on a MOQ of 100 units? Isn\u2019t MOQ a blocker in closing a deal?<\/span><\/p><p><span style=\"font-weight: 400;\">To answer the question, we have to look at the matter from the suppliers\u2019 perspective.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-85b1d5f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"85b1d5f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2439dd8\" data-id=\"2439dd8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1f338f7 elementor-widget elementor-widget-heading\" data-id=\"1f338f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Why Do Suppliers Have MOQs?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e5650db elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e5650db\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f9bff8\" data-id=\"3f9bff8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-344973d elementor-widget elementor-widget-text-editor\" data-id=\"344973d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Suppliers often set MOQ in favour of suppliers\u2019 <\/span><a href=\"https:\/\/sourcing.hktdc.com\/en\/Categories\/ed5d7561e3a011ea883f06c82c63b760\/Professional-Services?ref_source=newsbites\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">production plannings<\/span><\/a><span style=\"font-weight: 400;\">. MOQ helps secure that the supplier\u2019s production cost before running the production and that the minimum profits will be generated.<\/span><\/p><p><span style=\"font-weight: 400;\">In most cases, suppliers set out a MOQ with all accounting done beforehand. The MOQ covers the production cost and the minimum units the supplier needs to sell to make profits. Without MOQ, the supplier may end up selling fewer units, which will result in monetary loss.<\/span><\/p><p><span style=\"font-weight: 400;\">Some manufacturers work at a very low-profit margin, particularly <\/span><a href=\"https:\/\/sourcing.hktdc.com\/newsbites\/china-manufacturing-supplier-manufacturers\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">manufacturers in China<\/span><\/a><span style=\"font-weight: 400;\">. In general, <\/span><a href=\"https:\/\/research.hktdc.com\/en\/article\/NzA5MzgzNDYz\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Chinese manufacturers<\/span><\/a><span style=\"font-weight: 400;\"> close deals at 3 or 4 per cent profit margins for large volume orders.<\/span><\/p><p><span style=\"font-weight: 400;\">Factory size is another factor to decide MOQs, basing on the amount they produce on a single production run. Another reason for setting up a MOQ is that the item is sometimes too cheap to be sold in a single unit.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-da75a7a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"da75a7a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a761809\" data-id=\"a761809\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-13e480d elementor-widget elementor-widget-heading\" data-id=\"13e480d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Understand the importance of MOQ with an Example\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d9fdb2d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d9fdb2d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0fc9df8\" data-id=\"0fc9df8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2c214ff elementor-widget elementor-widget-text-editor\" data-id=\"2c214ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Here is a scenario:<\/span><\/p><p><span style=\"font-weight: 400;\">Let\u2019s say you want a supplier to produce 500 units in one production. The supplier has enough resources to produce 1000 units in one go, and suppliers will then waste its other 500 units.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The margin would also vary. If it costs the supplier $70 and he sells $100 per total unit via wholesale &#8211; they would need to sell all at once to earn their profits. Otherwise, it would take months to reach break-even.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Minimum Order Quantity (MOQ) ensures that these suppliers would not carry any losses.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dfb0242 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dfb0242\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-62a2c5e\" data-id=\"62a2c5e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-72cb919 elementor-widget elementor-widget-heading\" data-id=\"72cb919\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Can Minimum Order Quantity Change?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-031fa62 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"031fa62\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9510fbc\" data-id=\"9510fbc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8ce7b43 elementor-widget elementor-widget-text-editor\" data-id=\"8ce7b43\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">MOQs in general are meant to help suppliers earn their minimum profits. Suppliers can be lenient in regards to altering the MOQs (depending on clients). In certain cases, you can be considered a special client by building a relationship &amp; engaging conversations, providing an advantage of coming up with win-win situations between both parties.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">To meet MOQs, you\u2019ll need to shoot an email to the supplier. The following explains how you can do it and get their latest rates.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Have your quantity requirements laid out in order to engage in a more detailed conversation with the supplier in order to get an understanding of your needs.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">As mentioned, MOQs are not universal. Their rates vary from supplier to supplier. <\/span><a href=\"https:\/\/sourcing.hktdc.com\/?ref_source=newsbites\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Searching for suppliers on various platforms<\/span><\/a><span style=\"font-weight: 400;\"> can widen your options and land on one with a preferable MOQ. Certain suppliers can set their MOQs in hundreds or even thousands.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Being a very diverse market, you will need dedication to finding a supplier who can produce the number of goods you require at a relatively affordable price that suits your need.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4baaf0c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4baaf0c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-379f692\" data-id=\"379f692\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b432ed9 elementor-widget elementor-widget-heading\" data-id=\"b432ed9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">4 Steps to Calculate Minimum Order Quantity (MOQ)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-41473b8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"41473b8\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ac2710b\" data-id=\"ac2710b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d976566 elementor-widget elementor-widget-text-editor\" data-id=\"d976566\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">It is quite tricky to calculate MOQs since it differs depending on the context and situation of the business. While it\u2019s a key part of inventory control, there is no single correct MOQ or secured formulaic approach for every situation.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Each business will have to calculate the opportunity cost for paying higher per-unit costs and determine whether they should enforce higher MOQs. As these requirements can vary, a supplier may sometimes consider the advantages of taking some orders from a loss since it fuels higher-profit orders.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">As a result, a customised MOQ formula for your business will have to be created from your end. You will need to determine when the MOQs will generate the most profit for your business using extensive data collection and analysis.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">How can you do that? The following will provide you with the tips to establish your unique formula.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It\u2019s important to remember that there is no \u201cright\u201d MOQ, with the differing and varied situations amongst different businesses. While there is often a tradeoff between having higher MOQs or paying higher prices per unit, there isn\u2019t a go-to formula to calculate minimum order quantity.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-587cd05 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"587cd05\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-186a933\" data-id=\"186a933\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b10391e elementor-widget elementor-widget-heading\" data-id=\"b10391e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Determine Your Demand<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1972116 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1972116\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a287cc1\" data-id=\"a287cc1\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1eadcf4 elementor-widget elementor-widget-text-editor\" data-id=\"1eadcf4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Demand forecasts will require an understanding of product type, competition, seasonal impact, and many other factors to estimate unit sales in the future. For merchants purchasing inventory, this data can help inform you of your next purchase order. Inventory forecasting will match supply &amp; demand in the equation.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Finding the minimum order quantity you want from a manufacturer isn\u2019t far from what you will have to sell. You will also need to account for the total timeline of getting the inventory ready for shipping &#8211; such as lead times, freight transit times, warehouse receiving with your third-party logistics service provider (3PL), and potential delays. You may realise you need to order inventory as soon as possible for certain cases.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Here are some pointers on monitoring demand, especially during strenuous times:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain constant communication with your supplier(s).\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure you have enough stock in case you cannot manage any large fluctuations in demand.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review sales forecast weekly, if not daily, to adjust production quantities.\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6402e69 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6402e69\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8945d04\" data-id=\"8945d04\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7f6d3b2 elementor-widget elementor-widget-heading\" data-id=\"7f6d3b2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Calculate the Break-Even Point \n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5342ff4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5342ff4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-75f182b\" data-id=\"75f182b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19a20e7 elementor-widget elementor-widget-text-editor\" data-id=\"19a20e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">To set your minimum order quantity in your best interest, you must find out what your break-even point is. You will have the figure right after making the second transaction for DTC orders. Usually right when you recover your customer acquisition costs, and your customer comes back through email marketing efforts.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">As for wholesale, consider the lowest per-unit dollar you are willing to charge in exchange for a higher-order value. If you\u2019re not paying for smaller quantities at a higher price, the value cannot be so low where your profit margins are next to nothing &#8211; while volume discounts are expected.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b11473b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b11473b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f8e0a2a\" data-id=\"f8e0a2a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-653c945 elementor-widget elementor-widget-heading\" data-id=\"653c945\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Understanding Your Holding Costs\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5cec438 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5cec438\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4b0c73a\" data-id=\"4b0c73a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a35517c elementor-widget elementor-widget-text-editor\" data-id=\"a35517c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Certain products have more storage costs: based on size, storage duration and special warehousing requirements. It can help you financially when ensuring that such items are not stored in inventory for too long.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Inventory holding cost is the true cost of storing all of your products. It is something you should consider before heavily investing in inventory.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dc1df06 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dc1df06\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5b32ec4\" data-id=\"5b32ec4\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8835fe1 elementor-widget elementor-widget-heading\" data-id=\"8835fe1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4. Coming Up With Your MOQ\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c717ec2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c717ec2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-af939bc\" data-id=\"af939bc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c047295 elementor-widget elementor-widget-text-editor\" data-id=\"c047295\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Consider this scenario: let\u2019s say you are consistently maintaining a high demand. You will need to sell at least 150 units per order to make profits, but your partners purchase about 200 units per order on average.<\/span><\/p><p><span style=\"font-weight: 400;\">You could set 200 units per order as your minimum order quantity (or even go down to 150), if your partners or clients have been willing to buy 200-unit orders from the past.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-314c18a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"314c18a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d8cd54b\" data-id=\"d8cd54b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f7df5c3 elementor-widget elementor-widget-image\" data-id=\"f7df5c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"314\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-calculate-600x314.png\" class=\"attachment-medium size-medium wp-image-7991\" alt=\"moq-minimum-order-quantity-calculate\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-calculate-600x314.png 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-calculate-1024x536.png 1024w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-calculate-768x402.png 768w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-calculate.png 1200w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4a1fb64 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4a1fb64\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8bc5bc0\" data-id=\"8bc5bc0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3c3d69f elementor-widget elementor-widget-heading\" data-id=\"3c3d69f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">4 Tips on Implementing Minimum Order Quantity (MOQ)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3bcd9a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3bcd9a4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0878c17\" data-id=\"0878c17\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-71a3bc8 elementor-widget elementor-widget-text-editor\" data-id=\"71a3bc8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Here we have a few tips that will help you gather the necessary information to make the calculations and create a customized MOQ for your business.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5b43384 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5b43384\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1d7c186\" data-id=\"1d7c186\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-40c2bc0 elementor-widget elementor-widget-heading\" data-id=\"40c2bc0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">1. Calculate demand<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-068040b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"068040b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7bd4447\" data-id=\"7bd4447\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ccfc7d6 elementor-widget elementor-widget-text-editor\" data-id=\"ccfc7d6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Understand the demand for your products. <\/span><a href=\"https:\/\/research.hktdc.com\/en\/article\/NDIyODA4OTU1\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Demand forecast<\/span><\/a><span style=\"font-weight: 400;\"> is crucial in projecting how fast-moving your product is and how much you can stock up. Make forecasts based on <\/span><a href=\"https:\/\/sourcing.hktdc.com\/en\/Categories\/0f60a7abe39f11ea883f06c82c63b760\/Fashion-Clothing-Accessories?ref_source=newsbites\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">product type<\/span><\/a><span style=\"font-weight: 400;\">, seasonal trends, and competition. Factor in the logistics as well, such as shipment times, lead times, freight transit times, and warehouse receiving.<\/span><\/p><p><span style=\"font-weight: 400;\">Having a figure to accurately predict inventory quantity helps you respond to future changes for demand, and also evaluate sales forecast for figure adjustment.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ad9d9e3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ad9d9e3\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1a2b68f\" data-id=\"1a2b68f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ab09803 elementor-widget elementor-widget-heading\" data-id=\"ab09803\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">2. Determine Your Holding Costs<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-089d0b7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"089d0b7\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cca0d5\" data-id=\"0cca0d5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-10b2a82 elementor-widget elementor-widget-text-editor\" data-id=\"10b2a82\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Determining what your holding or <\/span><a href=\"https:\/\/www.fool.com\/the-blueprint\/carrying-cost\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">carrying costs<\/span><\/a><span style=\"font-weight: 400;\"> will help you understand the price you pay for storing goods. Certain products cost more for carriage. As an example, there are goods that require refrigeration &#8211; meaning energy costs, as compared to something that can sit on a warehouse shelf for months at room temperature.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">It\u2019s always more profitable to not hold inventory for too long, as there are <\/span><a href=\"https:\/\/www.fool.com\/the-blueprint\/inventory-costing\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">costs for inventory storage<\/span><\/a><span style=\"font-weight: 400;\">. There are other factors such as product size, special needs like energy usage, time costs for storage and other associated labour &amp; overhead costs.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-20bb567 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"20bb567\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-66ea8aa\" data-id=\"66ea8aa\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5d6e063 elementor-widget elementor-widget-heading\" data-id=\"5d6e063\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">3. Determine Your Break-Even Point\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bbe1d70 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bbe1d70\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-844430c\" data-id=\"844430c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9486e75 elementor-widget elementor-widget-text-editor\" data-id=\"9486e75\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">After getting the concept of demand and holding costs, you will need to determine your break-even point. What is the minimum number of products you should sell to recover the expense?<\/span><\/p><p><span style=\"font-weight: 400;\">Let\u2019s say you sold 5 products to a customer. How much would that bring in revenue compared to the costs for keeping those products in inventory, carrying costs and overhead? What if your order was 200? You will need to eventually find a break-even point to see how the sales revenue can exceed your expense on the product.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-80fefb2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"80fefb2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-19ada81\" data-id=\"19ada81\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1723951 elementor-widget elementor-widget-heading\" data-id=\"1723951\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">4. Draft Your Formula and Strategy\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b2c1ad7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b2c1ad7\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cb1cacd\" data-id=\"cb1cacd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-837ae7f elementor-widget elementor-widget-text-editor\" data-id=\"837ae7f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">After gathering all the data and determining what the solid MOQ would be, you can start working on the formula and strategy for implementation. This MOQ formula will describe each product type from your inventory, and strategizing lays out how your team can <\/span><a href=\"https:\/\/research.hktdc.com\/en\/article\/Mzk0ODgyNDMy\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">incentivise consumers<\/span><\/a><span style=\"font-weight: 400;\"> who fall below the MOQ and have them increase the order quantities.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">You will then avoid unprofitable orders which fall below the MOQs and minimise the risk of losing customers, having a formula and strategy in mind.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Rather than pushing to increase average order volume (AOV), providing an incentive like bulk-buying discounts can alleviate the risk of unprofitable sales. By having a minimum purchase amount set to control your risks, it makes it less likely for customers to dip below your profitability. Pushing your customers to increase their buys can be done by providing them with a valuable incentive.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ca12ef4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ca12ef4\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e72f40a\" data-id=\"e72f40a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6a3d2c8 elementor-widget elementor-widget-image\" data-id=\"6a3d2c8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"600\" height=\"314\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-implements-600x314.png\" class=\"attachment-medium size-medium wp-image-7990\" alt=\"moq-minimum-order-quantity-implements\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-implements-600x314.png 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-implements-1024x536.png 1024w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-implements-768x402.png 768w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/moq-minimum-order-quantity-implements.png 1200w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b5c5a1f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b5c5a1f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2bab223\" data-id=\"2bab223\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9cb6e60 elementor-widget elementor-widget-heading\" data-id=\"9cb6e60\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions (FAQ)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0cf6b37 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0cf6b37\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2949597\" data-id=\"2949597\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b683cf2 elementor-widget elementor-widget-heading\" data-id=\"b683cf2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What If You Don\u2019t Need Large Stock Quantity? \n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-dd8ff48 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"dd8ff48\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2f48ee8\" data-id=\"2f48ee8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e5e46a2 elementor-widget elementor-widget-text-editor\" data-id=\"e5e46a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">New businesses would often only require smaller numbers to get moving. In such cases, they wouldn\u2019t be able to afford MOQs set by manufacturers. To handle this situation, it\u2019s best to get direct contact with the manufacturer and deliver an honest statement for an affordable amount from your end.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">If you cannot negotiate terms that suit your needs, you will have to consider different suppliers that complement your business model.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Many suppliers are available to offer low MOQs. They just need effort in finding them. Depending on the industry you\u2019re working in, investing time to find and place efforts may not always be a wise decision. (More on this topic below.)<\/span><\/p><p><span style=\"font-weight: 400;\">If you decided on something you want to pursue, it would require a commitment for plenty of <\/span><a href=\"https:\/\/research.hktdc.com\/en\/analysis-and-news\/consumer-markets\/china\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">research<\/span><\/a><span style=\"font-weight: 400;\">. Going through <\/span><a href=\"https:\/\/research.hktdc.com\/en\/analysis-and-news\/consumer-markets\/china\" target=\"_blank\" rel=\"noopener\" data-wplink-edit=\"true\"><span style=\"font-weight: 400;\">hktdc.com Sourcing<\/span><\/a><span style=\"font-weight: 400;\">, TaoBao, and many other directories of online suppliers can provide an enormous range of searching scope.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Business owners generally take less risk of purchasing products since they need them over buying heaps of goods upfront. While this is not only a financial burden for anyone new to commerce, you cannot guarantee that the product will sell.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9f90c88 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9f90c88\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-865c434\" data-id=\"865c434\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-716e34d elementor-widget elementor-widget-image\" data-id=\"716e34d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"600\" height=\"539\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-600x539.jpg\" class=\"attachment-medium size-medium wp-image-7989\" alt=\"sourcing-product-101-hktdc\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-600x539.jpg 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-1024x920.jpg 1024w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-768x690.jpg 768w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-1536x1381.jpg 1536w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2021\/05\/sourcing-product-101-hktdc-2048x1841.jpg 2048w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5cf2b72 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5cf2b72\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-03ebef7\" data-id=\"03ebef7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e52a077 elementor-widget elementor-widget-heading\" data-id=\"e52a077\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Should I Stick With a Supplier Who Offers the Lowest MOQ?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1be693f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1be693f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e3347a3\" data-id=\"e3347a3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2fed27a elementor-widget elementor-widget-text-editor\" data-id=\"2fed27a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Even if you choose a company with the lowest MOQ, which seems to make sense &#8211; it doesn\u2019t necessarily mean you will get the most value out of it.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">There are certain key factors you should consider. Firstly, the ideal supplier should meet the product safety requirements specified for your niche. Secondly, you want a factory that has a great track record on fulfilling orders in time (See <\/span><a href=\"https:\/\/ecommerce-platforms.com\/articles\/ecommerce-fulfillment-best-order-fulfilment-companies\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ecommerce Platforms<\/span><\/a><span style=\"font-weight: 400;\"> for more information). Thirdly, you want a supplier who can provide a customer support team that offers a pleasant service.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">More importantly, you will want to maintain a good relationship with your suppliers. If you drive their MOQ really down, their profits will be cut &#8211; leading to unhappy and disappointing outcomes for the suppliers as they lose money. They are also far less likely to prioritise production run for your company, especially if they have higher-paying clients. Naturally, business relationships are crucial, and it is essential to avoid jeopardising them.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a1a3362 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a1a3362\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5173b83\" data-id=\"5173b83\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-edf68c3 elementor-widget elementor-widget-heading\" data-id=\"edf68c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion \n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2b1abf2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2b1abf2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b05672e\" data-id=\"b05672e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-79e8ebc elementor-widget elementor-widget-text-editor\" data-id=\"79e8ebc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In a nutshell, there are a few key factors to find out and implement<\/span> <span style=\"font-weight: 400;\">your MOQs:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Find out the demand for your product<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Crack the sweet spot of\u00a0 breaking even<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Always look into sales forecasts and discuss with your suppliers on production quantities<\/span><\/li><\/ul><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-22a253d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"22a253d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b23335d\" data-id=\"b23335d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ce5a1eb elementor-widget elementor-widget-text-editor\" data-id=\"ce5a1eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Read more: <\/span><span style=\"font-weight: 400;\">How to Find a Manufacturer or Supplier<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Introduction Every business owner would want to take in every business opportunity that comes across. Who would want to turn a customer away? But the &hellip; <\/p>\n","protected":false},"author":11,"featured_media":7992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[294,295],"class_list":["post-7929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips","tag-minimum-order-quantity","tag-moq"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is MOQ (Minimum Order Quantity) ? How to calculate it? FAQ Included<\/title>\n<meta name=\"description\" content=\"What does MOQ mean? How to find it out, and how can it help your business? 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