Minimum Order Quantity (MOQ)
A minimum order quantity (MOQ) is the smallest amount a supplier will accept on an order, set per item or per order value. It protects the supplier's margin on small orders and shapes how buyers plan purchases. Orders below the MOQ are rejected or adjusted, a common source of order exceptions.
Why suppliers set an MOQ
Fixed picking, packing, and shipping costs make very small orders unprofitable. An MOQ, expressed in units, cases, or dollar value, keeps each order economical to fulfill. It can vary by item, by customer, or by promotion, so the same product may have different MOQs in different deals.
MOQ in order processing
An order line under the MOQ has to be caught and corrected, ideally at entry rather than at the dock. Validating incoming orders against MOQ rules turns a silent short shipment into an exception a person can resolve before it ships.
Related Terms
Frequently Asked Questions
MOQ stands for Minimum Order Quantity, the smallest quantity or order value a supplier will accept on a single order.
Suppliers set an MOQ to cover the fixed handling and shipping costs of an order and to protect margin, since very small orders cost more to fulfill than they earn.
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