When you do some business with China factories and you may see the MOQ in your supplier’s catalogs and quotation lists. For example MOQ 1000pcs, 1000pcs per order. So do you know what’s MOQ means? And why do factories and suppliers need MOQ in your order? While now all over the world people are attacked by Covid-19 and it is a really hard obstacle for small buyers to offer this high MOQ. But do you know how to reduce the MOQ? What’s Royalin car parts can do for you? Please read it below and you can find some tips.
The MOQ means the Minimum Order Quantity, it is the minimum number of units you need to order from supplies. But it is not a fixed number, instead, it is a variable. And for different products the MOQ is not the same.
Why need MOQ?
Low-profit margins require larger volumes.
In China, the profit of many commodities is very low only about 3%-5%. So factories want to produce the products in bulk orders to reduce the material cost and labor costs.
Chinese suppliers normally don’t keep products in stock.
The products in the warehouse can’t be money before they sold out. The largest factory the more complex. This inventory is a huge burden. The company needs cash to expand production and design new products. Therefore, factories generally do not keep inventory. But generally, a small amount of material inventory still be made so that factory can produce in time when the order is received.
How to reduce the MOQ?
We can negotiate a lower MOQ with our suppliers. In fact, now many China companies are glad to help overseas small companies grow up with lower MOQ in trial order. But not all the industries can low moq for you. And lower MOQ sometimes means the price increased. But at the begain of your business, it is still a good way to start your business.
Well, if you want to know more about the MOQ and how to negotiate with Chinese suppliers to reduce MOQ. You can read this blog.
What’s royalin’s MOQ.
We are sincere to help our clients to grow up. So we have different MOQ in different items. And some products even without MOQ. For example, Bi-led and bi-xenon projector lens MOQ 10-100set. And for projector lens shrouds we had made some in stock such as mini gating gun shrouds and apollo shrouds. You can take it without any MOQ. Well, for some fog light lens MOQ the same as headlight lens, just 10-100set.
Now in this year, we update new led truck side marker lamps. It need 500-1000pcs. But these lamps are widely used so it is still a small MOQ for you.
Anyway, it is our goal to help our partners lower the MOQ, solve any problems, and finally achieve cooperation. So please contact our sales team, we will have a pleasant communication and long-term cooperation.