If you have just set up a company, it is normal for you to have certain doubts about the MOQ (Minimum Order Quantity), that is, the minimum amount to do business with a customer required by a provider. We will try to clear them up in this article.
What to do if your inventory requirements are low?
In general, you do not need to purchase a large amount of merchandise to start a store up and running. Therefore, adjusting your current inventory needs to the supplier’s MOQ can imply a significant expense.
You can expose this situation to the manufacturer, they may make exceptions for new customers. Perhaps you have a small inventory of your own products or are willing to execute a small order in a situation like this.
What if a supplier cannot process your order? You have other options at your fingertips. Today, there are several manufacturers that specialize in small and medium-sized businesses and work with a low Minimum Order Quantity. Do a little research on the internet to find the right one.
First, you can turn to an online provider directory. These platforms allow you to locate them based on their MOQ values, which can range from one to thousands of units.
You also have the option of going through a middleman, known as a wholesaler. These are companies that buy large volumes of merchandise from certain manufacturers and offer them to distributors in general. Since they do not have a MOQ, minimum order quantity, they usually agree to sell a few units to their clients.
Perhaps in your city there are price clubs or another format of wholesale stores that you can go to in search of items to stock your stock. You can also turn to e-commerce giants such as AliExpress, Amazon, and MercadoLibre. In general, these portals offer discounts and free shipping from a few units.
Is your company going to operate online? The dropshipping It can be a great alternative for you. These are companies that make their merchandise stocks available to you so that you can do promotions as if they were yours. When a user makes a purchase, you only have to place the corresponding order with the supplier, who will be in charge of sending the product on your behalf.
Companies with low MOQ or without it: Are they your best option?
To answer this question, you must consider several factors:
Cost per unit. Suppliers who accept a low MOQ will hardly be able to offer you lower prices than those who produce in large quantities. The same is true in the case of wholesalers. By adding a link to the supply chain, your profit per item will be reduced.
item quality. Some companies manage to lower their prices by resorting to low-quality raw materials and poor and unsafe manufacturing processes. The result is defective and not very resistant products that will negatively impact your image. Also, you could get into legal trouble. Be immediately wary of manufacturers who offer very low Minimum Order Quantity at unbelievable prices.
Customer Support. A good supplier or wholesaler should not only offer quality products at a reasonable price. You must also provide excellent customer service. Merchandise should arrive on time and in excellent condition. In addition, except for exceptional circumstances that affect the entire industry, there should never be problems of stockouts. If you don’t choose your stockers carefully, you’ll have to constantly apologize to your customers for not having what they’re looking for, and you’ll waste a lot of time contacting the company to voice your complaints.
To choose the best possible supplier or wholesaler, it is best to carry out a careful analysis online. Read carefully the recommendations of the experts and the reviews of the users, and determine the characteristics of each company evaluated.
Conclusion.
In conclusion, going to a company with a low MOQ or without it can be a good solution when you are just starting a business and you do not have the resources to buy large volumes of merchandise. But you must make sure that the products are of quality and that you will be able to sell them at a competitive price without sacrificing your income. Either way, your long-term goal should be to get a deal with the big vendors on the market.
Now, what can you do if you can’t find a viable alternative to stock a stock bass? So, the best thing to do is to get financing options to cover the cost of your first order. It is true that your inventory volume will be higher than strictly necessary, but you will be able to recover faster thanks to the higher profit margin. In addition, you will be sure to offer your customers quality items.
Over time, when your company has grown, you will not have to worry about the MOQ, Minimum Order Quantity, since your orders will be above said value.
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And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
