E-Commerce & Product Sellingintermediate
MOQ
Minimum Order Quantity
Definition
The smallest number of units a supplier will sell to you in a single order. MOQ exists because manufacturers need volume to make production profitable.
Why it matters
Understanding MOQ before choosing a supplier is critical. A £2 per unit product with a 1,000-unit MOQ requires £2,000 upfront, which affects your starting capital.
Example
You find a supplier for a phone case on Alibaba. Their MOQ is 500 units at £1.50 each, a minimum investment of £750 before you can stock the product.
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