What is Minimum Order Quantity & Why Does it Matter in International Sourcing | BlinkGlobal

When sourcing from overseas, the minimum order quantity is a requirement that can never be superseded. Small businesses often loathe it, suppliers like it, and some businesses have no other option but to cope with it. However, at Blink Global, we believe that minimum order quantity should never be a deal-breaker for deciding if you want to source or not.  We understand that MOQ can be a tough call for small businesses but there are ways to play around. With our vast experience in international sourcing, we have helped hundreds of small businesses effectively deal with MOQs while maximizing their profitability. If you are new to international sourcing, this article will help you understand the basics of Minimum Order Quantity and learn how you can use it to your advantage.  

What is MOQ?

The definition of the term Minimum Order Quantity is pretty self-explanatory. MOQ is the lowest set amount of stock that the supplier is willing to sell. International suppliers have set an MOQ on many of their products and don’t cater to orders that fall below it. MOQ varies from product to product and supplier to supplier. However, when dealing with suppliers overseas, MOQ is always a factor.

Why Do Suppliers Have MOQs?

In a nutshell, wholesale suppliers need to place MOQs to stay profitable. If they cater to orders of very small sizes, they won’t be able to manage their costs and stay profitable. Suppliers need to cover all the costs and MOQ helps them earn profits from the coordination.

How to Deal with MOQ When You are Buyer

Like we mentioned earlier, there are walkarounds that you can try and ensure the profitability of all parties involved. Here are some tips:

Negotiate on a Lower Cost

MOQ may not always be flexible and negotiable, but prices most certainly are. When a supplier is stringent on MOQ, try to negotiate on the price of the minimum order. Work toward a lower price but don’t risk your investment by insisting on a price so low that the supplier may compromise on the quality.

Work with a Small Supplier

If the scope of your ordering is small and limited, it is wise to partner up with a small-sized supplier. Small suppliers usually don’t have stringent MOQ requirements and are often ready to negotiate on the terms. There are plenty of small-scale suppliers that provide high-quality products at very competitive prices. So if you are just stepping into international sourcing, start with a small supplier. However, you should always make sure that the supplier is reliable and authentic.  

Sign Up for a Long-Term Contract:

The best way to get the supplier on your terms is by signing a long-term with a supplier. Overseas suppliers are looking for long-term contracts and partnerships and if you ensure a supplier that you are going to work with them in the future, they’ll compromise on their MOQ terms and will cater to your small orders as well.

Partner up with a Sourcing Company 

The best strategy is to partner with a sourcing company. An experienced sourcing company like Blink Global has vast experience in dealing with suppliers and helping clients get the best products at competitive rates. Our agents also deal with industry-specific suppliers and are masters of creating win-win solutions.  Get in touch today!