When we want to buy in bulk from China, the minimum order quantity (MOQ) that factories often require is one of the biggest problems, especially for small and medium-sized enterprises (SMEs).
In fact, all Chinese suppliers are very strict about meeting the MOQ, and below the set threshold, no supplier is willing to make the goods because it wouldn’t make sense in terms of costs and profits. If you can’t meet the supplier’s minimum order quantity, your order may not be taken care of because there is no room for negotiation.
Why Chinese suppliers require a MOQ
Chinese suppliers, and suppliers in general who use low-cost labor, tend to have fairly high minimum order quantities. This is because the profit margin is usually pretty small, between 2-4%. The Chinese market is very competitive, and companies try to keep prices as low as possible. As a result, they have to make a lot of goods in order to make a profit.
Another thing to think about is that most Chinese suppliers are limited in ways that make it impossible for them to lower the MOQ. If they did, they could do more business and work with smaller importers, but they are limited in ways that make this impossible.
When buying raw materials and production parts, manufacturing companies must meet the minimum order quantities set by their suppliers. So, so that they don’t end up with warehouses full of raw materials and unused parts, they have to make the buyer buy a certain minimum amount. In fact, the Chinese don’t keep ready-to-ship products in stock. Instead, they buy the materials and parts they need for production only after the importer has placed an order. This way, they save money on the costs of running a warehouse and reduce the risk of having unsold goods at home.
Also, it’s important to know that goods destined for the European and US markets need special certifications that require the use of high-quality materials and parts, which costs money. Also because of this, Chinese suppliers would rather wait until they have a firm order than start a very expensive production without a buyer.
What is the MOQ of Alibaba and AliExpress companies
The MOQ on Alibaba
If you think that Alibaba doesn’t follow this rule, you’re wrong. In reality, the Chinese giant is just a marketplace where Chinese suppliers can sell their goods, but it has nothing to do with how the goods are made.
So, the MOQ on Alibaba varies from supplier to supplier, but it’s usually quite high. This is because, as we’ve already said, all the companies on Alibaba follow the same rules and don’t sell ready-made goods. Instead, they make the goods after getting an order and buying the materials and parts needed.
For a wristwatch, for example, you usually have to buy at least 300 of them. The MOQ request must always be related to a specific product. This means that if you order two different types of items, the minimum order quantity is doubled because they are two different products and each has its own MOQ, even if the supplier is the same.
The MOQ on AliExpress
AliExpress, on the other hand, has a very low minimum order quantity because it is a B2C platform with retail prices, not wholesale prices.
On AliExpress, you can only find finished products and buy them as they are. You can’t have goods made just for you, nor can you add logos or pictures to them to make them unique. This platform only offers products that are ready to be shipped.
Here, you can buy a single item or a small number of them. However, it’s important to know that since this is a B2C platform, the wholesalers are actually middlemen who buy from manufacturers to resell to third parties. As a result, the prices are not as good as the wholesale prices and are not a good deal.
This is why you can find fixed unit prices on AliExpress, but not on Alibaba. The prices shown are the prices that people pay. A real wholesaler won’t be able to tell you how much each item costs per unit because it depends on the quality standards needed, the materials used, and, most importantly, the number of items ordered and the time it takes to deliver them. So, the price of this wristwatch can range from 2 euros to more than 200 euros, depending on the quality standards and shipping terms.
How to buy merchandise from China without MOQ
You can’t negotiate the minimum order quantity. It’s hard to lower it, and you can’t get rid of it altogether because that would mean the supplier would have to work for free, which no one is willing to do. The minimum number of items that must be ordered can go down if:
Sourcing quality products from China means placing different orders for different products that can use the same materials and parts; coordinating your purchases with those of other importers; importing products that don’t need certification standards, in which case you can choose items made for the Chinese market.
Dropship-empire is the only platform that can help you source from China. If you want to buy directly from China without having to buy a certain amount, you can contact them. With Dropship-Empire, you can order one item at a time without having to meet a minimum order quantity (MOQ) if you want to do dropshipping, or you can order wholesale goods in very small quantities.
You should also keep in mind that the purchase of a single price in dropshipping is tied to the presence of a pre-existing stock, while the wholesale plus the minimum order quantity (MOQ) salt lowers the price of a single product because it spreads out the basic production costs.