What is the purpose of minimum order quantity?

The purpose of minimum order quantities is to allow suppliers to increase their profits while getting rid of more inventory more quickly and weeding out the “bargain shoppers” simultaneously.

Can you negotiate minimum order on Alibaba?

As mentioned previously in our tips for buying on Alibaba, minimum order quantities are almost always negotiable, it’s simply a matter of asking. Remember, a good negotiation leaves both parties happy with the outcome, so push a little but not too hard.

How can we avoid MOQ?

Fortunately, there are steps a buyer can take to reduce their MOQs while still reaping the benefits of overseas product sourcing.

1. 1) Try to negotiate a lower minimum order requirement.
2. 2) Consider paying a slightly higher price per unit in exchange for a lower MOQ.
3. 3) Use standardized components rather than custom ones.

When buying wholesale Is there a minimum quantity?

Minimum Order Quantity refers to the minimum amount that can be ordered from a wholesaler supplier. For example, if you have an MOQ of 100 units or $100, your customers must be able to purchase at least 100 units or spend $100 to be able to buy from you.

Does ordering cost decreases with lot size?

The concept is as lot size (q) increases the carrying charges (C1) will increase while the ordering cost (C3) will decrease. On the other hand as the lot size (q) decreases, the carrying cost (C1) will decrease but the ordering costs will increase.

What does PCS mean on Alibaba?

On AliExpress “Piece” means 1 piece. So “Pcs” means pieces. “Lot” is the product (can contain 1 or several pieces).

What is OEM in Alibaba?

OEM stands for “original equipment manufacturer,” and refers to a manufacturer that provides goods or manpower to bring a product to market. If you are a company hoping to launch a new product, you might require the services of OEM manufacturing through a B2B portal site like Alibaba.com.

How do you ask for a minimum order?

5 Ways to Negotiate Minimums

1. Just Ask. The most obvious: ask for a lower minimum.
2. Low Minimum at Higher Price. Ask if they are willing to go in at a lower minimum and pay a higher price (you don’t want to offer the price, let them come back to you).
3. Cover Set-up Fees and Costs.
4. Gradual Production Run.
5. Group Your Order.