How To Overcome MOQ Issues?

When you import goods from China, You must have come across the term MOQ many times whenever you are looking for a perfect supplier for your product, right?  And ought to familiarise yourself with.

Very few manufacturers/suppliers in China will accept a purchase order unless the buyer agrees on the MOQ. If they agrees on that be aware If the China minimum order quantity you are being offered is very low it  can be mean that the products will be of a substandard quality and have poor safety standards or they are taking higher price.

It is somehow only possible if you committed to long term commitment, higher price, buying from smaller factory, sub-standard product, avoid excessive customisation.

MOQ is the minimum order quantity that is a familiar challenge for most business people. As the supplier has set a certain MOQ i.e. the lowest amount that the supplier is willing to accept an order for. Or to put it another way, it is the minimum number of products the manufacturer/supplier is willing to produce and sell at one time.

This MOQ depends on factory size, customisation, product type, quality, raw material etc.

They don’t accept the order without certain quantity because Chinese manufacturers and suppliers work with low profit margins. To make up for the narrow profit margins, Chinese suppliers produce and sell goods in bulk. This allows them to cover their production costs.

But we highly recommend to buy from supplier who demand high MOQ requirements.

They are genuine manufacturer and they will provide you best quality product, safety product because they have most premium clients and they don’t take weight on their shoulder if they lose some of their clients due to MOQ issue. they are not trader who sell product.

While Chinese suppliers are usually open to negotiations, it’s a bad idea and a waste of time to try to lower the MOQ and unit price at the same time.

Avoid the Lunar New Year (February) and Golden Week (October) high seasons, when factories are shut and workers take time off work for a week if not longer. During the high season, manufacturers are under great pressure to meet production deadlines. They might, therefore, be less open to negotiate MOQs. Besides, shipping costs can go up in the high season due to the suppliers’ rush to deliver orders before breaking for the holidays

This challenge can affect the order unit you are thinking to close the deal with. That’s why people look for someone who can negotiate on MOQ and close the deal at a decent unit order, who coordinate with the inventory teams to make suppliers agree on certain MOQs.

By continuously analysing the demand for the product that is coming into the market, our experts make sure that your order gets fulfilled by the supplier you have shortlisted.

Aexim International Limited

With over 16 years of experience Aexim International stands proud to be one of the most Innovative trade solution provider in China.