Thursday, August 6, 2009

Understanding "Minimum Order Quantity" When Purchasing from Wholesalers - by Worldwide Brands

By Chris Malta, Founder & CEO of Worldwide Brands

Wholesale Tips Series - How to find wholesalers, doing business with a wholesaler, what to expect when purchasing from wholesalers and more.

Tip #13

The third wholesale term for eBay Sellers to understand is: MOQ. MOQ stands for Minimum Order Quantity.

The Confidential Dealer Price List typically lists an MOQ: "Minimum Order Quantity". This sets the smallest quantity of the item you can order at a time when you place orders. The MOQ will vary from item to item. Large, pricier items typically have a smaller MOQ. The less pricey, smaller products typically have higher MOQs.

The MOQ is usually also the smallest quantity at which the wholesale supplier can make a profit on the product so it is typically non negotiable. Wholesale suppliers depend on large volume business. Wholesalers’ profit margins are thin. This is why they must make their money by selling in large volumes to online ecommerce retailers, such as eBay Sellers.

Worldwide Brands is an eBay Certified Solution Provider, providing product sourcing access and information for eBay sellers. They are the publishers of an extensive directory of legitimate, fully-verified ecommerce wholesalers and manufacturers.

No comments: