MOQ

To test the market and limit the risks, for new projects, usually buyers will try to purchase a small QTY. However, Chinese suppliers will always require MOQ – usually it’s a QTY larger than importers are comfortable to start with. So, how to get lower MOQ from Chinese suppliers? The easiest way to get low MOQ is to buy the supplier’s existing design. However, buyers taking this strategy will then face packaging as the key issue. There are three main choices: 1. Plain box: MOQ is low (around 100 pcs). The buyer uses a plain brown box at supplier’s same die cut, and put stickers with brand name, model, product description and barcodes on the box. Should be fine if products are sold online (Amazon, eBay, etc.), but unacceptable for retail. 2. Supplier’s non-branded packaging: MOQ usually is medium (around 500 pcs). Should be fine if products are sold online (Amazon, eBay,…

Minimum Order Quantity (MOQ) requirement specifies the lowest quantity of a certain product that a supplier is willing to sell. If the importer cannot reach the MOQ requirement, then the supplier is not willing to enter production. Suppliers in China tend to have fairly high MOQ requirements. Why Chinese Suppliers Require MOQ? What can you do about it? Reason 1 – Low Profit Margins Require Large Volumes Chinese suppliers tend to have very low profit margins, as low as 2-3% is common. Price competition is fierce and Chinese businesses in general tend to be focused on keeping a low price rather than improving product quality and service level. Low profit margins require the supplier to produce a large quantity of products in order to break even.  Reason 2 – Material Suppliers also Require MOQ I’m sure most Chinese suppliers would be happy to do business with smaller buyers if they could. In fact, I know that…