MOQ (Minimum Order Quantity)
Definition
MOQ (minimum order quantity) is the smallest quantity a supplier will accept for a product on its normal terms. It can be counted per order, per style or product, or per color, and some suppliers also set a minimum order value. Suppliers use it to make sure an order covers the costs of producing and exporting it. If a supplier accepts a smaller order, expect a higher unit price or a surcharge.
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Definition
A minimum order quantity (MOQ) is the smallest quantity a supplier will accept for a product on its normal terms. The minimum can be counted per order, per style or product, or per color, and a supplier can combine a quantity minimum with a minimum order value. CBI, part of the Netherlands Enterprise Agency1, explains to exporters that the purpose of an MOQ is to make sure an order earns enough margin to cover all the processes involved in producing and exporting it2.
In practice
In an order from a Bangladeshi supplier, the MOQ shows up in three places: on the product listing, in the quotation and in the supplier's terms of sale. Read the unit as carefully as the number. CBI's example trading terms for exporters set a minimum order shipment value on an FOB basis and, separately, a minimum number of pieces per different product2. A minimum of 1,000 pieces per style and color is a very different commitment from 1,000 pieces across the whole order.
On Exportain, a product listing with quantity price tiers shows each unit price above its quantity range, followed by a line such as "Unit price, FOB Chittagong Port. Minimum order 1,000 pcs." If you enter a quantity below the minimum in the quantity box, the page moves it back up to the minimum. Listings without tiers show "Price on request" together with the minimum order3. Every quotation a supplier sends through Exportain also states the MOQ, alongside unit price, lead time, Incoterm, payment terms and validity4.
An MOQ can be negotiated, but expect a smaller order to cost more per unit. CBI advises apparel exporters to state in their quotations that an order below the quoted quantity will carry an upcharge5. Options worth asking about include stock fabric instead of custom fabric, fewer colors, standard trims and a trial first order. Treat each as a question for the supplier, not an expectation.
When you post an RFQ, give the quantity per style and per color, not only the total. That helps suppliers tell you early whether your order meets their minimum and what a smaller run would cost.
Related terms
MOQ explained: minimum order quantities and how to negotiate them — the full guide, with price tiers and negotiation options
How to write an RFQ that gets useful quotations — what to include so suppliers can answer on MOQ
FOB (Free On Board) — a price basis you will see on listings and quotations
Sources
- About CBI. CBI, Netherlands Enterprise Agency (accessed )
- Terms & conditions for suppliers of home decoration and home textiles. CBI, (accessed )
- 100% Organic Cotton Heavyweight Crewneck T-Shirts (180 GSM) — product listing. Exportain (accessed )
- How to source and buy from Bangladesh. Exportain (accessed )
- 11 tips for doing business with European apparel buyers. CBI, (accessed )
Reviewed by Naim Islam
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