5 Simple Ways to Lower MOQ-Ebuysourcing Service

How to Lower MOQ in 5 Simple Ways

EBUYSOURCING

03/29/2022

What is MOQ?

When you are sourcing on platforms like Alibaba, you might find that most suppliers ask you to meet the requirement of MOQ (minimum order quantity) which is the least amount of product that a manufacturer is willing to deliver per order.

Although MOQ varies among different suppliers, it is necessary to negotiate proper MOQ, especially for a new start up business. If you don’t have any clues on how to deal with suppliers, here are some valid strategies to help you lower MOQ.

1. Compare MOQ of different suppliers

Depending on the market scale, the number of suppliers varies significantly. If you are interested in selling popular products like earbuds or air purifiers, the competition is so fierce that only the suppliers with the most competitive pricing and MOQ can take the top spot when you are searching on sourcing platforms. In that case, you already have the best MOQ they can offer.

2. Order from traders rather than manufacturers

The biggest advantage of sourcing from traders is that they can provide more flexibility for merchants. Generally, whether you just need to order a single product for dropshipping, or you are a retailer who needs a larger number of products for wholesale, traders can meet both requirements.

In addition, unlike manufacturers who specialize in a single type of product, traders can also offer a wide range of products.

Last but not least, in most cases, traders have more experience in exporting, and you don’t need to be concerned about the language barriers in communication.

3. Band with other merchants to place an order

If you have no choice but to deal with a supplier for a specific product, try to find other merchants who are willing to group with you to order in bulk.

Group ordering increases order volume, which brings down the cost so that suppliers and merchants can both benefit from it. If the total amount is considerable, you may enjoy a great discount even if you only need a few units.

Besides, by combining all the information gathered by group members, you are much more likely to avoid being scammed by suppliers.

4. Pay a higher price

As you might have known, when it comes to manufacturing, the total costs are composed of various resources, including labor costs, material costs, land rent, electricity, etc. So manufacturers have to make a decent profit to cover the overall cost. Paying a higher price per unit makes up for the loss when producing less than MOQ.

If your budget is too tight to consider a higher price, you can ask suppliers if they are willing to accept installments. Put some effort into communicating with them, try to convince them that you are trustworthy. Then you can make an agreement with them.

5. Purchase standardized products rather than custom ones

The more custom-designed parts and features you require, the higher the quantity you will be asked to purchase. If you decide to lower MOQ, it is better to order standardized products with lower prices and MOQ.

Besides that, unlike standardized products which manufacturers usually have large stocks of, you have to wait a long time during the whole process of manufacturing custom products.