What is MOQ? Understanding minimum order quantity

MOQ (Minimum Order Quantity) is the smallest amount a seller will produce or sell per order. It directly affects both your unit cost and your cash flow. Why do sellers set an MOQ? Setting up a production line, tooling, or ordering raw materials carries fixed costs — the more you order, the lower the per-unit cost. Manufacturers’ MOQs are usually higher than those of wholesalers/importers. If you’re ordering modest volumes, a wholesaler may fit better even at a slightly higher unit price. Can you negotiate MOQ? Often yes — offer recurring orders, accept standard colours/specs, or pay a setup fee in exchange for a lower MOQ. Tip: when requesting a quote, state the quantity you really intend to buy and ask for volume price breaks. You’ll quickly see the sweet spot where ordering more pays off.