Logistics manager checks minimum order quantity inventory data at a Shenzhen warehouse receiving dock before shipment

What Is Minimum Order Quantity (MOQ)?

A minimum order quantity (MOQ) is the smallest number of units a supplier will sell in a single order. If a factory sets an MOQ of 500 units, you cannot order 200. You either meet the minimum or find another supplier. MOQ is a supplier constraint, not a negotiation style: it reflects the fixed costs of setting up a production run, sourcing raw materials in batches, and running quality checks efficiently. According to inventory distortion cost data cited by Shopify, inventory mismanagement often triggered by poorly managed MOQs cost global businesses an estimated $1.7 trillion in 2024 alone. For ecommerce brands sourcing from manufacturers in China, South Asia, or anywhere globally, understanding how MOQ works is one of the first

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Logistics manager checks minimum order quantity inventory data at a Shenzhen warehouse receiving dock before shipment

What Is Minimum Order Quantity (MOQ)?

A minimum order quantity (MOQ) is the smallest number of units a supplier will sell in a single order. If a factory sets an MOQ of 500 units, you cannot order 200. You either meet the minimum or find another supplier. MOQ is a supplier constraint, not a negotiation style: it reflects the fixed costs of setting up a production run, sourcing raw materials in batches, and running quality checks efficiently. According to inventory distortion cost data cited by Shopify, inventory mismanagement often triggered by poorly managed MOQs cost global businesses an estimated $1.7 trillion in 2024 alone. For ecommerce brands sourcing from manufacturers in China, South Asia, or anywhere globally, understanding how MOQ works is one of the first

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