MOQ stands for Minimum Order Quantity — the smallest quantity of a product a supplier is willing to sell in one order. If the MOQ is 500 units, you buy 500 or you don’t buy at all, even if you only need 120.
MOQ meaning, in plain English
Suppliers set MOQs because small orders often aren't worth their setup, handling and shipping costs. Factories in particular have production-run minimums: firing up a line for 50 units costs almost as much as for 5,000.
Where you'll see MOQs
- Per product: "MOQ 500 units per SKU."
- Per order value: "minimum order £2,000."
- Per production run: common with overseas manufacturing and own-label goods.
- In multiples: "sold in cartons of 24" — effectively a 24-unit MOQ with 24-unit steps.
Why MOQs quietly distort your stock
The maths might say "order 120 units", but the MOQ says 500. The surplus 380 units is real cash sitting on a shelf, plus holding cost, plus obsolescence risk. Multiply that across hundreds of SKUs and MOQs become one of the biggest hidden drivers of overstock in wholesale and distribution. The trap runs the other way too: buyers skip ordering a slow line "until we need a full MOQ's worth" — and then stock out of it.
How to negotiate an MOQ down
- Ask. MOQs are opening positions more often than physical constraints.
- Trade price for quantity: many suppliers will halve the MOQ for a few percent on unit price. Whether that trade is worth it is a holding-cost calculation, not a gut feel.
- Combine SKUs into one order to hit a value-based minimum.
- Commit over time: a scheduled 12-month volume in exchange for smaller, more frequent releases.
Optimal Chain treats MOQs as first-class constraints, not footnotes. Its budget planner only proposes order quantities that are zero or a valid MOQ multiple — so the plan is one you can actually place. And when a supplier offers "8% off if you take 5,000 units", the Deal Analyser answers with holding costs included, and hands you the exact break-even price to take into the negotiation.