MOQ stands for Minimum Order Quantity. It is the smallest number of units of a product that a supplier or manufacturer is willing to sell in a single order

. This minimum quantity is set to ensure that the supplier covers production costs, shipping, and other expenses while maintaining profitability

. Key points about MOQ:

• MOQ can be expressed either as a number of units or as a dollar amount, depending on what best suits the supplier's business model

• It is commonly used in wholesale and manufacturing contexts to avoid low-value or small orders that are not financially viable

• MOQs vary widely depending on the type of product, manufacturing process, and supplier policies. For example, complex or machine-made products often have higher MOQs than handmade items

• Setting an MOQ helps suppliers optimize production runs, reduce costs, and improve supply chain efficiency

• For buyers, MOQ means they must order at least the minimum quantity to have their order accepted and fulfilled

In essence, MOQ balances the supplier’s need to maintain profitability with the buyer’s demand, ensuring efficient production and supply chain management