MOQ (Minimum Order Quantity)
Definition
The smallest number of units a supplier will produce or sell in one order.
Want a deeper explanation?
MOQs force you to buy more than you need, especially when launching new products or colors. That is a big source of excess and dead stock.
Negotiating lower MOQs, even at a slightly higher unit price, can be cheaper overall. Watch for: per-unit savings that look good but leave months of slow stock and storage costs.
Example
Your supplier's MOQ is 3,000 units per color. You only expect to sell 1,200 of the new color in the first six months, so meeting the MOQ ties up cash in 1,800 extra units.