You must be familiar with MOQ (Minimum Order Quantity) if you are an experienced buyer in this industry.You will often see this term on a 2B platform,that is usually used by suppliers to indicate the minimum amount of product they are willing to supply.
Why Vendors Have a MOQ Requirement?
You may wonder why the vendors have a MOQ requirement,especially if you need small quantity of 100pcs only,but the supplier ask for 300pcs at least.It creates a barrier to your business.
From the buyer’s point of view,it is understandable that they do not want to have to unnecessary asset to fulfill the MOQ.They are willing to try something new,but hope to minimize the risk of inventory pressure and high capital investment.But we also need to get into the shoes of the suppliers.
MOQ is essential for suppliers to ensure recovery of production costs and minimization of profits.They need to calculate the minimum quantity of production needed to ensure production efficiency and output,how much units he needs to sell to start making profits in a single order.
Especially when they work at a low-profit margin for some economical products,they need a large volume to sell to make profits.It’s no doubt that great quantities get the best price.
For example:
Take the quantity we just mentioned,if you want 100pcs,while the supplier need to produce 300pcs for production efficiency concern,then the supplier need to waste its other 200pcs or get 200 pcs stock left in their warehouse.The cash being occupied is 2times than what the buyer paid.It must be a heavy burden for them.They need to sell the stock quickly to avoid further storage in space-limited warehouse,get profits quickly and keep the cash flow running.Otherwise,they will face acute fiscal and balance-of-payments (BOP) problems.
How to Get LOW MOQ?
In views of some customers who might feel burdened by High MOQ due to their limited market space or just dabble in the RTA furniture industry,NuTrend offers two proposals for them.
* Combining order with other customers,or choose from the products that are availalbe to tag on another bulk production.
* Nutrend reserved some HOT SELLERS for spot in advance,which have long-term replacement orders.They can perfectly satisfy the customers who required LOW MOQ and Fast Shipment.NO LONG LEAD TIME,NO HIGH MOQ,NO DELAY.
Welcome to contact us and get the catalogue of RTS items for option.
Post time: Aug-04-2021