How to deal with MOQ

What is MOQ

MOQ means Minimum Order Quantity.

Setting a recommended order quantity for each product is one of the methods to replenish the stock. Also note the validity of the order, which is a rule set by the supplier. For example, minimum order quantity, packaging quantity, method, etc. The purchaser’s recommended order quantity is set on this basis.

If the order quantity is relatively low to meet the minimum order quantity, the supplier will not deliver, and conversely, the order quantity is relatively high, which may lead to a higher inventory. This requires the purchaser to balance the two.

Note: The minimum order quantity is closely related to the supplier’s cost. The supplier will determine the minimum order quantity based on the customer order quantity based on production and cost control. That is, above this amount, the supplier will ship.

Why set MOQ

Because of the unit costs. The FOB cost and other base costs will be high if the quantity is too small. About 400USD is the price of FOB Shenzhen seaport

If the quantity is too small, the costs for each production step will be very expensive. Because many production processes will have a start-up fee. For example, the printing cost of 4C for 50 pieces is about 100USD, and the printing cost of 4C for 1000 pieces is the same as 100USD. But for 1000 pcs, the unit printing cost is only 0.1usd/pc. It’s2 USD/pcs for 50 pcs only. For quantities between 50 and 1000, the die-cutting cost is 80USD, the mold cost is 50USD, and the handmade cost is about 100usd. The unit price is completely different and varies greatly.

Because of the Delivery time. The lead time is very close for producing 50 or 1000 pieces. It takes about 15 days to complete 50 pieces and about 20 days to complete 1000 pieces. The production steps required are exactly the same. The time spent in each process is also basically the same.  This is why we had to set the MOQ and increase more quantity to improve the price also delivery.

How to deal with MOQ

1.Consolidate the purchasing plan, place some orders together, increase the quantity to match the MOQ.

Increasing the quantity, the unit price will become better, and the MOQ will be acceptable. If there are multiple purchases in one year, you can place an order at once and ship at once. The box cost and shipping costs will be lower. If your warehouse space is not large enough, you can ship in batches. You can store it in our factory for free for 3 months. If more than three months, some storage fees will be charged. After full payment, you can store it for 6 months for free.

2.Select some boxes without MOQ requirements, such as some stock boxes and bags. We have some paper bags and boxes in stock. They inclued many styles, colors, and sizes to pick from. Not only no MOQ requirement, and lots of variety, but also can ship within 1 week, and also the price is very economical. If you are interested, please contact me freely. We will share some of our hot stock, including size color style, and other details soon.

3.Replace samples production. If the requested quantity is very small, between 10-30, you can use the sampling production to produce this batch. The approximate cost is $500 for 30 boxes for reference, which takes 10 days to complete. If we follow the production steps of mass production, it will cost about 700USD and about 20-25 days for reference only. These costs will vary depending on the size, material, process, etc.

4.Change the packaging type with a lower MOQ requirement. Some styles are more affordable and have a lower MOQ. If cardboard boxes, corrugated boxes, mailer boxes, pillow boxes, paper bags, etc. You can pick the right packaging according to your budget, quantity, and other needs. We will also lower the MOQ to support and grow with you. But it is true that the more the quantity, the better prices. The normal MOQ, for handmade boxes, is 500 pieces. For cardboard boxes, corrugated boxes are 500 pcs. For paper bags, 100 pieces are enough to start.

5.Buy in your city. If the quantity is determined to be not very many and the budget is limited, the cost of customization cannot be reduced, and some international shipping costs have to be added, it may be a better choice to purchase locally near you. Because some large wholesalers and distributors will purchase some containers of bags and boxes at one time. In this case, the price of the packaging will be much better. Plus the shipping costs will be evenly spread out and much lower. Then the price you buy directly from them will be cheaper than buying from us. Even though they also purchase from China from us. The more quantity, the lower the unit price.

6. Other solutions. If you have a lot of designs, but the quantity of each design does not reach the required quantity of MOQ, we can reduce the MOQ moderately to match your requirements to move. And since we could typeset and collate, printing and die-cutting costs to provide a better price.

If the size is the same, it is also possible to reduce the MOQ. Because this can save die cutting costs. The more quantity of the same size and the same design, the lower the unit price will be.

If the sizes are different and there are many designs, you may have to try to pick a more suitable size and as many quantities of each design as possible, so that the unit price will be good.

These are the reasons why MOQ should be set and how to improve the high MOQ.

More related questions

1. What to do if MOQ is too high with a limited budget
2. MOQ is too high, and the proofing fee is too expensive, how do
3. How can I buy below MOQ?
4. Do not need to add my logo, there will be MOQ requirements
5. What is the packaging without MOQ requirements?
6. How is the MOQ set?
7. Is the MOQ of all products the same?
8. Can you accept orders with lower quantities than MOQ?
9. How can I apply for a lower quantity than MOQ?
10. Why don’t you have MOQ for other products.

There will be very many similar challenges and we will find a way to solve them.

Contact us and let our professional team assist you, thank you.