When you import goods from China, suppliers propose a MOQ (minimum order quantity) on their commodities. This means you have to buy a certain amount of products if you have to close the deal with that supplier.

They set a buy limit order is an order to purchase an asset at or below a specified price, allowing traders to control how much they pay. By using a limit order to make a purchase, the investor is guaranteed to pay that price or less. but you are able to buy such quantity either they refuse to deal or charge more than specified price.

The MOQ depends on different product types and quality, customization, raw material, and more. You will find very few manufacturers/suppliers in China who will accept a purchase order unless the buyer accepts the MOQ otherwise every Chinese factories have fixed criteria to keep MOQ and you can’t convince them to give you lower quantity of goods if you can they will charge you more.

Thus, it appears as an important point of discussion for the suppliers and buyers. A buy limit order does not guarantee execution. Execution only occurs when the asset’s price trades down to the limit price.

To place an order, you need to decide on two price points. The first price point is the stop, which is the start of the trade’s specified target price. The second price point is the limit price, which is the outside limit of the trade’s price target. And  if you are going to add new product in your list or new in business than you can’t take risk to buy in bulk as well in first shot you can’t afford much price, you need to buy below the market price otherwise it won’t be profitable for your business, to overcome this issue definitely you need a local people to keep the MOQ flexible for you. Who can convince the suppliers to consider instalment payments and provide the goods at a high standard quality at low cost.

Entering the market at a specific price can be a difficult move to time. It may result in missing opportunities or getting in at the wrong point, based on your research.