MOQ means minimum order quantity: the smallest order a supplier will accept under the quoted terms. For a new online store, the important question is whether that commitment fits the demand you have tested and the cash you can afford to tie up.
Check what the minimum applies to
An MOQ of 100 may mean 100 units in total, 100 per colour or 100 per size. A supplier may also set a minimum order value or sell only in complete cartons. Ask for the exact rule before multiplying the unit price.
Custom packaging, a new mould or a non-standard material may have separate minimums. A lower product MOQ does not help much if the branded boxes require a much larger purchase.
A bulk discount can increase your risk
Consider two fictional offers: 20 units at ₹250 each require ₹5,000, while 100 units at ₹200 require ₹20,000, before other costs. The second offer saves ₹50 per unit only if the additional stock remains useful and sells on acceptable terms. It also commits four times as much cash.
Do not judge the offers by unit price alone. Compare the total payment, likely sales period, storage, possible discounts needed to clear stock and cash left for running the store. Lower cost per unit and lower business risk are different goals.
What you can negotiate
- Ready stock: ask whether existing stock has a lower minimum than a production run.
- Standard variants: use an existing material or colour instead of custom manufacturing.
- Unbranded packaging: test demand before ordering custom boxes.
- Mixed variants: ask whether sizes or colours can be combined toward the minimum.
- Trial pricing: accept a clearly quoted higher unit price for a smaller initial batch.
- Delivery stages: clarify whether staged delivery also reduces your payment commitment; it may not.
A realistic request
I am testing demand for [product] and can commit to [quantity] units for the first order. Can you quote a trial batch using your standard specification and packaging? Please show the price, freight and lead time. I will review reorder quantities after the trial rather than promise a volume I cannot confirm.
When to walk away
If the minimum exceeds your loss limit or leaves no operating cash, look for another sourcing route. Avoid promising future purchases solely to obtain a discount. Also check whether splitting an order increases freight enough to cancel the benefit of smaller batches.
Next action: compare the total cash commitment for two order sizes and write down what evidence would justify the larger one. See Shopify's explanation of MOQ for background on supplier minimums.
Related practical guides
For a broader beginner sequence covering research, store setup and operations, explore the Leviative Ecommerce Roadmap. It is an educational guide, not a supplier directory or a guarantee of results.