What Does MOQ Mean – And Everything Else That You Need to Know About It

As an entrepreneur, you will most likely encounter the acronym MOQ when dealing with manufacturers, private label companies, and bulk supplies provider. The minimum order quantity is one of the most commonly used terms in the wholesaling, retailing, and manufacturing industries.

But what does MOQ mean in the real sense? Are there advantages and disadvantages to it? Most importantly, how do you find the best manufacturer that offers MOQ that suits you?

As MOQ plays a big role in both buyers and sellers in the B2B marketplace, it is therefore important to get a hold of everything you need to know about minimum order quantities. In this article, we are going to take a closer look at what MOQ is all about and how it may affect you and your budding business.

MOQ: What is Minimum Order Quantity?

MOQ – or minimum order quantity – refers to the lowest number of units that a wholesale provider or manufacturer allows buyers to purchase at one time. Simply put, this is the least number of products that you can purchase from the supplier. If you can’t comply with the set MOQ, most probably, the supplier won’t sell it to you because this is set to cover the production cost of the producer.

MOQs are set by the suppliers to avoid wasting time and resources on orders that would not deliver the expected profit. This is a very upfront concept that is technically used among suppliers worldwide.

If you are just starting in the industry, note that MOQs do vary – depending on the manufacturer and products that they supply. Different industries have diverse ways and reasons for coming up with their set MOQ. But in most cases, high-ticket products that require a higher cost to produce usually require a lower MOQ while those with low-ticket and cheap to produce may have a higher MOQ.

How Does MOQ Impact Your Business?

Minimum order quantities highly impact both the buyer and seller – most particularly in the aspect of supply chain and expected profit.1 Aside from this, as an entrepreneur buying wholesale, you also have to consider your warehouse capacity and financial capability. To be guided, here are the two types of MOQs offered by manufacturers and bulk suppliers.

1. Low MOQ

While this may vary from one supplier to another, most commonly, low minimum order quantity order ranges from 1 – 50 to 50 – 200 or more depending on the kind of product and the demand it gets from the market.

For starters, this could be a great option because the numbers are manageable. However, this could also require higher administrative costs when the product gets more demand. When running low on stocks, this may mean frequent reordering on your part.

2. High MOQ

There’s no specific value given to products with high MOQ. Again, this could vary along with industries and the kind of product being manufactured. Regardless though, dealing with suppliers with high minimum order quantity means making sure that you have a significant amount of working capital and warehouse space to accommodate your orders. On a side note, having to stock up a good number of products also means lower administrative costs because you are saved from frequently ordering the raw materials or the private label products.

Where to Find Manufacturers that Offer MOQ that Suits You?

If you are looking for a manufacturer that can suit your MOQ needs, you’ve come to the right page. We at The Omnium Group welcome both established and startup companies. We offer low minimum order quantities for products that we manufacture, like vegan gummies, dietary supplements, nutraceuticals, and many others.

As a full-service, contract manufacturing, and private label company, we have FDA-registered facilities and new technologies that are capable of producing high-quality cosmetics, body essentials, nutritional supplements, gummies, and CBD products that align with your specifications and company values. We would be happy to discuss further everything you need to know about the development and production of your product, most particularly our MOQ. Contact us now and let’s take a step forward towards the realization of your business goals!


1 Chow, Pui Sze & Choi, Tsan-Ming & Cheng, T. C. E. (2012). Impacts of Minimum Order Quantity on a Quick Response Supply Chain. IEEE Transactions on Systems, Man, and Cybernetics – TSMC. 42. 868-879. 10.1109/TSMCA.2012.2183351.

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