Alibaba MOQ

Are you thinking of buying from Alibaba suppliers? Remember, there are limitations on purchasing the inventory—for example, Alibaba MOQ on the products.

Our experts have more than ten years of experience and can instantly resolve MOQ problems on Alibaba. To resolve this issue, you need to land on serious suppliers offering low MOQ. I am continuously talking about MOQ. You might be wondering what MOQ is? 

If that question is in your mind, not pronounced. Today, we will have a comprehensive analysis of MOQ helping you in trading.

What Is MOQ?

MOQ refers to minimum order quantity. An Alibaba supplier might put restrictions on the number of products to be purchased. For example, if a seller has a minimum order quantity of 10 pieces. By that means, you can order a minimum of 10 samples from that seller. 

It increases the safety of the trade and ensures the buyer is serious about buying inventory. There can be other goals to keep the MOQ on Alibaba.

Suggested reading: How to buy from Alibaba?

Why Set An MOQ?

If you have been on Alibaba you’ve seen MOQ quoted below the listing. This number easily causes a lot of confusion among buyers. But you can RELAX cause we’ll tell you all about it!

So why in the HECK would Chinese suppliers have minimum order quantity requirements?

Two main answers:

1. Cost-Effectiveness

It is easier and more effective to produce things at HIGHER VOLUMES than it is to make them in LOW NUMBERS. Your Alibaba supplier sets MOQ requirements for them to DISTRIBUTE the production cost. Some of these costs include purchasing raw materials and paying for the labor. It allows them to have low FIXED COSTS per unit.

2. Inventory Management

Chinese suppliers need an efficient way to MANAGE their inventory. That’s like any other business. So, they don’t always keep large stocks of finished goods. They make them when needed. The minimum order quantity MOQ on Alibaba ensures they can create a NEW production line for you. Minimum order quantities equal sample AVAILABILITY.

Expert insight: MOQ mostly applies to a customized product or products that are not typically available. It allows the manufacturer to give you the LOWEST PRICE, meaning that you will not lose money. You also benefit from economies of scale.

Joy TAN, Supply Chain Consultant

Strategies For Managing And Negotiating MOQs Expert Insight

Oh, did I mention that MOQs are not fixed? That’s right. You can negotiate these quantities to a level that is MORE COMFORTABLE for your wallet or purse. 

Here is how to go about it:

Most factories are willing to COMPROMISE a little on their stated MOQ. However, be respectful and do not ridiculously lowball them.

For example, if they state their MOQ is 2000 units, do not suggest 40 units at wholesale prices. Come on, we all know that’s inappropriate. Aim for something closer to the supplier’s MOQ, for instance, 1800 units.

A GOOD NEGOTIATOR comes in handy here. At Leeline Sourcing, we negotiate MOQ with the supplier to get you what you need. We’ve been at this for a while so we have all the right questions.

If you just want a few samples to test out the product, explain this and ask to buy them at RETAIL PRICE. This is quite standard, and your supplier will likely have this option on their listing.

Your particular request may not make economic sense for the manufacturer. In that case, they may refuse. Thank them POLITELY and look for another seller.

Expert tip: Leverage Alibaba’s digital negotiation tools to get lower MOQ. The tools on the platform offer you immense insight USEFUL in price negotiation.

Angela Yan, Supply Chain Consultant

How To Find Low MOQ Suppliers On Alibaba?

Alibaba doesn’t have to be a scary place. You can easily find verified Alibaba suppliers ready to sell you small amounts. I am talking 5 to 10 units. That’s just like your Amazon orders on a good day, right?

Here is the cheat sheet on how to get low MOQ Alibaba suppliers:

Step 1: Navigate to the “Ready to Ship Channel” On your Alibaba.com/bulk.

Step 2: On the SEARCH BAR, key in the name of the product you are looking for.

Step 3: Specify the number you want in the “Min Order” category.

Step 4: Peruse through the options and pick one that works for you.

Look for a box labeled “Ready to Ship.” That will give you an EXHAUSTIVE LIST of products that give you low MOQ and that can ship out within 15 days.

Still can’t find what you’re looking for? GRADUALLY increase your “Min Order” till something pops up that you like.

Or,

Reach out to the manufacturer to ask about their flexibility in their numbers.

If you still get high MOQ, float an inquiry in the Request for Quotation (RFQ) Market with the number you want. That gives the supplier a heads-up on the minimum quantity you need from the get-go. And they can DECIDE whether to move forward or not.

Luckily, Leeline Sourcing helps reduce all this complexity. We handle the sourcing process, from finding suitable supplies to negotiating MOQs and prices on your behalf. The team is experienced in product sourcing and international business to give you the smoothest experience. 

Expert insight: Consider the legal associations of year orders. In some climates large MOQs Have DIFFERENT compliance treatment. That is especially true when dealing with INTERNATIONAL BUSINESS.

Kassie Zhang, Supply Chain Consultant

How To Reduce Alibaba MOQ?

1. Understand why you really want a smaller MOQ

Get the BASICS right when lowering your MOQ. Know your reason for doing it, as everyone has a different motive.

Ecommerce sellers buy small quantities for a market test and gather FEEDBACK. Most retailers choose to go with a different solution for the same products at the beginning. That’s cause, most of the time, the MOQ specs are too high. Large corporate purchases require MULTIPLE multi-departmental authorizations.

Expert insight: All MOQ Considerations come with a significant amount of risk. Keep in mind market dynamics, quality, cost, and overstocking when thinking about MOQ.

Zhuosheng P., Supply Chain Consultant

2. Manufacturers typically have multiple MOQs 

Most buyers have their hearts broken when they hear an exorbitant number of MOQs. You’re NOT BOUND to that 1000 or 5000 number that they typically give you. 

Multiple factors Can help you LOWER the minimum amount. Consider material, color, number of variants, packaging options, profit margins, and logo customization. 

So, ask about any of these and see which of them you can do without or less on the finished products.

3. Send your MOQ bid to the manufacturers 

Calculating the suppliers’ MOQ may be too theoretical. Just send them your “OWN BID,” as it might be more effective. You give your manufacturer the OPPORTUNITY to understand your real MOQ needs wholly.  

In doing so, you make them want to work with you SUBJECTIVELY. You will often find them giving you significantly lower MOQ based on at least the color or SKU.

4. Case analysis

For our European client, We needed to find a solution for their two large stores. They could handle the minimum quantity for one but not two products. It was NOT economically DOABLE for them to keep 1000 computer bags each in white and black colors.

What did we do, you ask?

We came up with additional SKUs (we’re talking more colors and shapes) within their budget. 

We got the wholesalers’ MOQ structure that listed the following:

Material: 1000 Units

Color: 500 Units

Size: 200 Units

This allowed us to identify the SUBCONTRACTOR as the key to lowering the MOQ, allowing us to SOLVE the issue. So, we gave our client 4 SKUs. We’re talking about 2 color options for their bags, each with two shapes.

5. Utilize Sourcing Services

Use a third-party sourcing agent to conduct the business for you. These SPECIALIZE in buying goods all within China for outside buyers. They have enormous expertise and networks, which they leverage to get you better MOQs.

That’s where Leeline Sourcing shines as the BEST sourcing agent in China! They’ll scour the ENTIRETY of the country to bring you the most favorable MOQ deals at the best price. The team gives you a range of services, including sourcing, packaging, and logistics handling. So you can run your job shipping or white labeling business easily.

Expert tip: When discussing your MOQ with Alibaba suppliers, understanding their cultural nuances is important. You need to navigate the communication and negotiation norms in the supplier’s culture with prowess.” – Michael Chen, Cross-Cultural Business Consultant

Cheryl Low, Logistics & Supply Chain Consultant

6. Negotiate with your supplier to Lower MOQs

As we’ve hinted throughout, buyers can NEGOTIATE DOWN your MOQ. Keep in mind that factories are not obligated to accept your particular proposal. 

But if you are a skilled negotiator, you are likely to score deals with up to 20% order reduction. You heard that right!

Our team leverages its situational awareness in the market. We understand prevailing market conditions, English and Chinese, facilitating efficient transactions. Our extensive supplier connections also allow us to negotiate down MOQs for you.

7. Trade higher unit prices for lower MOQs

An often-overlooked tactic is to pay a higher UPFRONT per unit cost to get a lower MOQ. Manufacturers will accept this because it covers their production costs. 

On the other hand, you enjoy SUSTAINED cost savings on other aspects of a business. Think storage, transportation expenses, and so much more.

8. Standardize your components across products 

If your product needs hard-to-find components, your supplier will ask for high MOQs. It only MAKES SENSE. You know, higher price and all of that? 

Custom-designed parts also increase MOQ. Going with something that has COMMON components helps reduce the minimum amount required. 

9. Utilize Common Components Across Products 

On the same note:

If you can standardize your components across MULTIPLE PRODUCTS, you are golden. What I mean is Pens/Watches with different brands can SHARE some internal components. That significantly lowers MOQ requirements for those components. 

Having worked with a number of manufacturers and suppliers, we help you source affordable components for your product.

10. Get different manufacturers’ quotes for comparison 

Alibaba manufacturers come in all SHAPES and SIZES. Some large-scale manufacturers have high MOQ Requirements compared to smaller ones. 

Use Alibaba Requests for Quotation. With it, shop around for DIFFERENT PRICES and QUOTATIONS. That way, you can easily find what works for you.

Our team offers you transparent pricing and quotation, ensuring you get the best prices. We give you the figures that we are quoted directly from the manufacturers. 

11. Partner with Traders

In some instances, trading companies are the way to go. These businesses buy goods from factories in LARGE QUANTITIES. And then they split them for buyers. 

Therefore,

They act as BROKERS. Their ability to spread out large MOQ among different buyers makes them attractive.

Expert tip: Invest in education to get INTIMATELY acquainted with the functioning of international trade. You can leverage this information in your decision-making and negotiation.

Samiullah Korai, China Sourcing Expert

12. Source Excess Stock

Every once in a while, factories have excess stock that they want to GET RID of. This happens due to last-minute cancellations, quality control failures, or production delays. 

Whatever the reason they are typically selling the products at LOWER PRICES and MOQ. You can use these opportunities to snag up what you need.

The BIG BUT here is to be wary of the ELEVATED RISK of purchasing defective products.

13. Visit Chinese Wholesale Markets

Maybe stretch your legs and take a stroll to China. You’ll get awesome MOQ deals at the country’s wholesale market. 

If you can make it, check out the Yiwu International trade market for GREAT OPPORTUNITIES. You get one of the most DIVERSE product selections out there.

14. Explore Online Marketplaces

Don’t be discouraged if you cannot make it to China. Virtual marketplaces such as Aliexpress or DHgate offer Chinese products without MOQ requirements. Approach the sellers there with CAUTION to guarantee product quality and AVOID SCAMS.

How Do You Negotiate Low MOQ With Suppliers?

MOQ solely is not a problem. Usually, suppliers want to market their inventory, but they look for serious buyers. If someone meets their demands, they might ponder lowering the minimum order quantity to some extent. 

However, many cases confirm the lowering of MOQ on Alibaba correctly. Here are those cases.

Example:

Suppose a seller keeps the minimum order quantity of socks of 100 pairs per order. Your order is low at 40 pieces. So, how will you negotiate and convince the supplier to agree to your MOQ?

Can you answer this? If not, no problem. Here are five cases to negotiate with the seller.

Case 1:

Talk to the supplier about your requirements and start that; our business is still in the development phase. We have limitations on the number of products for the market analysis. So, we want to purchase an inventory of 40 pieces for the market test.

After the successful test and results, we indeed will move ahead with the big order of 100 pairs of socks.

If the Alibaba suppliers say no, that's not possible usually. You have other ways to express the problem and convince the supplier.

Case 2:

In the second, you can negotiate differently but with a professional tone. Here is how you can contribute:

We usually test the product before launching product in the market. For this purpose, we need to go through the quality of the sampling, check the demands, and observe the customers' reactions to the same product. 

If everything goes fine, we buy the higher quantities of products. So, can you lower the MOQ and make it 40 pieces? If yes, that would be the start of a long-term relationship.

The supplier won't say the No. If the supplier refuses, you can also try other ways to negotiate.

Case 3:

You can give it a third try with inventory negotiations with the supplier. You can say:

Our previous experience with Chinese suppliers has not been great! So, before ordering any big amount of socks, we would like to make sure we landed at the right supplier. 

For this reason, we want you to do the 40 pairs of socks. Our short-term relationship could potentially convert into a long-term one if it goes well. What do you think about it?

After that, the supplier might not refuse. If still, the manufacturer refuses to make the MOQ to 40 pairs, consider it a serious concern. So, you can try the following two cases.

Suggested reading: Questions to ask Alibaba suppliers

Case 4:

Now, you can describe the concern in a better way. Talk to the supplier:

We need to consider more oversized orders in the future. Our business is expanded over a more extensive scale enabling the high requirements for the products. If this order goes as expected, you can be one of our top suppliers. So, we would like to start with 40 pairs before ordering the 100 pairs of socks.

Maybe this way of negotiations might work. If it doesn't, you can try the following form.

Case 5:

Last but not least, you can talk to the supplier about your business strategy. Here is how you will negotiate:

We spend a lot of money on business deals, such as marketing, designs, and product import. Since we have a business on a large scale, don't you think it is a good idea to do business with us? Consider this issue and respond to us.

Probably, you will get a positive response. That's how you can negotiate with the Alibaba suppliers.

FAQs About Alibaba MOQ

What’s Next

Low MOQ is precisely essential for some consumers. Usually, consumers don’t have anything about buying in mind. The land at Alibaba suppliers, discuss the matter, and buy.

That’s all. To get five to ten pieces looks impossible unless you conduct research. So, it is better to find flexible Alibaba suppliers with low MOQ.

LeeLine Sourcing can help you sort out the low MOQ buyers and purchase inventory without getting scammed, hit us now.