Discover MOQ Minimum Order Quantity: Meaning, Types & Negotiation

Don’t just ask “What’s your MOQ?”—you’ll get a number that might be useless. Instead, be very specific. For example, when you message a supplier:

• Clarify the level:
• “What is your MOQ per SKU?”
• “Is the MOQ per color, per size, or per total order?”
• Clarify customization:
• “What is the MOQ for my logo/print/packaging?”
• “Is the MOQ different for stock items versus custom items?”
• Clarify value-based thresholds:
• “Do you also have a minimum order value (MOV) in USD per order?”
• Ask about flexibility:
• “What’s your standard MOQ, and what is the minimum you could accept for a first test order?”

Always restate what you understood:
“Just to confirm, MOQ is 300 units per color, with a total minimum of 1,000 units per order, correct?”

OEM stands for “Original Equipment Manufacturer.” In sourcing, an OEM product usually means:

• The factory manufactures to your design/specification (dimensions, materials, functions), or
• They significantly customize an existing product under your brand

Because OEM implies more customization, MOQ tends to be higher because:

• Custom molds, dies, or printing plates must be amortized over more units.
• Unique raw materials or colors may require larger minimum buys.
• Extra development work (sampling, testing, certifications) needs to be covered.

If you want OEM but keep MOQ lower, you can:

• Use existing molds or base models, only change color/label.
• Limit the number of variants (sizes, colors, SKUs).
• Accept standard packaging instead of fully custom for the first batch.

When supplier MOQ is way above your demand or budget, you have several levers before walking away:

• Adjust the product:
• Use standard materials/colors they already stock.
• Reduce variants (fewer SKUs, sizes, or colors).
• Adjust the deal:
• Propose a trial order at a higher unit price with a plan to scale on later orders.
• Ask if they can split production: “Produce 1,000 now, ship 500 now, 500 later.”
• Adjust the sourcing:
• Look for trading companies or wholesalers with lower MOQs.
• Partner with another buyer to combine volumes on the same item.
• Adjust your business model:
• Start with a simpler version of the product to test the market.
• Use higher-MOQ SKUs only once you have stable demand data.

If none of these work and the MOQ still doesn’t match your risk tolerance, the cheapest decision is often to find another supplier rather than over-commit on stock.

The biggest losses rarely come from the MOQ number itself, but from how it’s handled. Common mistakes include:

• Chasing the lowest unit price:
• Accepting a huge MOQ to get a better price, then sitting on slow-moving stock.
• Ignoring variant-level MOQ:
• Forgetting that MOQ might be per color/size and ending up oversupplied in the wrong variants.
• Not checking MOQ links:
• Overlooking minimums on packaging, labels, or accessories (e.g., hangtags, boxes) that create hidden volume commitments.
• Separating sourcing from logistics:
• Ordering just enough for the factory, but in quantities that are terrible for freight (e.g., half‑empty cartons, very inefficient LCL).
• Miscommunicating:
• Assuming the supplier meant “total per order” when they meant “per SKU,” leading to disputes or re-quotes.

You avoid most of these by clarifying every detail in writing, modeling demand per SKU, and checking how your order interacts with freight and storage before you sign a proforma invoice.