MOQ or Minimum Order Quantity is a term you will encounter in the importing business, and most people cannot define it. New online sellers are coming up daily and are looking to buy products from major companies for reselling. MOQ is an important factor to consider before ordering from a supplier. So what is MOQ? It is the minimum amount or number of products you can order from a manufacturer. The set MOQ depends on the product and can either be high or low. We look at ways of navigating high MOQ below.
Ways of Navigating High MOQ
MOQ is an essential part of any eCommerce seller. It influences the number of items you can purchase, the cash flow, suppliers, and much more. You often have a set budget for your products as a seller, so a high MOQ can be frustrating and even limit your chances of getting anything. To manage this, you can do the following;
1. Initiate Negotiations
Negotiating is vital in the business world, especially if you want to sell and make a reasonable profit. This also applies to MOQs. Some suppliers may be willing to lower their MOQs, so talking your way through is the only way to find out. You can ask the manufacturer for a small initial MOQ or a rise in the cost of each product. It means that the increase in price per item covers the total money the supplier would have made from the high MOQ. In addition, you can offer a long-term commitment to show the company that you’ll be a regular customer, and they can curate a more friendly MOQ for you.
2. Ask Customers to Pre-Order
It is a smart move if you’re introducing something new into the market and you are unsure how customers will receive it. Having clients preorder gives you a rough picture of the product’s demand, how many pieces you can buy, and the money needed to cover the MOQ costs. Also, preordering gives you ample time to meet the set MOQ, and you can order comfortably from the supplier.
3. Purchase Now to Receive at a Later Date
A high MOQ means the minimum number of products you can order is quite high. Before placing an order, ensure the supplier is okay with you paying then receiving your goods in batches at specified dates throughout the year. This practice comes in handy when your storage space or warehouse is limited and cannot accommodate much. However, consider any additional costs you may incur, the risk of receiving damaged goods, and the supplier closing down the company before you get all your goods.
4. Outsource for Providers or Warehouses
Most eCommerce sellers have one main warehouse to store their goods. These spaces can be a huge concern with the high MOQs provided by the supplier. You can locate extra space or find providers to distribute your products countrywide to potential clients.
The minimum order quantity is a must-have for most suppliers but doesn’t have to affect your business or the number of products you buy. Use the tips above will help you embrace the high MOQs and get your desired items.