MOQ (Minimum Order Quantity)

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