MOQ

Definition

MOQ (Minimum Order Quantity) is the smallest number of units a supplier requires a buyer to purchase in a single order.

Explanation

In dropshipping, MOQ is important when working with suppliers because it determines whether you can order single units for your customers or must buy in bulk. Many dropshipping-friendly suppliers offer low or no MOQ, allowing store owners to sell products without holding inventory.

Understanding MOQ helps dropshippers:

• Plan product selection: Choose items that can be fulfilled per order
• Manage cash flow: Avoid unnecessary bulk purchases
• Negotiate with suppliers: Sometimes MOQs can be adjusted for repeated orders

High MOQ requirements can make traditional dropshipping difficult, as it may require purchasing inventory upfront.

Example

A supplier has an MOQ of 50 units for a custom mug:

• In standard dropshipping, this is impractical because the seller wants to fulfill orders one at a time.
• The dropshipper either finds a supplier with no MOQ or negotiates a lower MOQ.
• Once a suitable supplier is found, the seller can list the mugs and fulfill customer orders individually.

Key Takeaway

MOQ defines the minimum quantity a supplier requires per order. For dropshipping, choosing suppliers with low or no MOQ is essential for risk-free, inventory-free selling.