What Is an MOQ? How to Set Wholesale Minimums
MOQ (minimum order quantity) is the smallest number of units, or the lowest dollar amount, a seller will accept in one order. A brand starting wholesale deals with two kinds: the factory MOQ it buys against, and the wholesale minimum it sets for stores. For stores, a setup that usually works is a modest opening dollar minimum, small per-style minimums, case packs that match how boutiques buy, and a lower reorder minimum.
Key takeaways
- MOQ can be counted in units (per style, size or color) or in dollars (a minimum order value). Always say which one you mean.
- Factories usually set MOQs per style and often per color, and the stated number can often be negotiated.
- Base your wholesale minimum on two things: what it costs you to process an order, and how much stock a store needs to make a good display.
- Set the reorder minimum lower than the opening minimum so stores can restock what sells.
- If boutiques that suit your line keep passing on it, your minimum is probably too high.
What are the two kinds of MOQ a brand deals with?
The first is the factory MOQ. This is the smallest run a manufacturer will produce for you. The second is the wholesale minimum. This is the smallest order you will accept from a store, and it affects how many retailers say yes. For terms like sell-through and MSRP, see our glossary of wholesale terms.
How do factory MOQs work, and can you negotiate them?
Factories usually set MOQs per style and often per color. Fabric mills and trim suppliers can add their own minimums, and each color may be dyed as a separate lot. The stated MOQ is often a starting point. A brand owner on Reddit's r/ecommerce put it this way: "Most vendors will say they have high MOQs but talk to them anyway... So if they say 1k per style per color, they will most likely accept 500." That is one owner's experience, not a rule.
Things that often help in a negotiation:
- offering fewer colors per style
- using one fabric across several styles
- paying a higher unit price for a smaller run
- ordering several styles at once
- asking even when the MOQ looks fixed
What types of wholesale minimums can a brand set?
Most brands combine two or three of these instead of relying on one high number.
| Type | How it works | When it fits | Buyer's view |
|---|---|---|---|
| Order dollar minimum (opening order) | The first order must reach a set dollar total | Most brands; covers the cost of handling an order | Fine if it is small enough for a test order |
| Per-style unit minimum | Each style ordered needs a set number of units | Styles that look thin on a shelf with only one or two pieces | Fine if low; high counts stop buyers from mixing styles |
| Per-size or SKU minimum | Each size or option ordered needs a set quantity | Items where single units cost a lot to handle | Can force sizes a small store can't sell |
| Case packs or multiples | Units are sold in fixed multiples, such as 6 or 12 | Accessories, gifts and items packed in sets | Large packs crowd out small stores |
| Opening vs reorder minimum | A higher minimum for the first order and a lower one for restocks | Brands that want a full display first and easy restocks later | Welcome; rewards stores that sell through |
A brand owner on Reddit's r/smallbusiness summed up the balance: "For a lot of small brands that means a minimum opening order, smaller reorder minimums, and case packs based on how stores actually buy, not how you store inventory in house."
Why should a reorder minimum be lower than an opening minimum?
An opening order gives a store enough stock to build a display and test your line. A reorder only has to keep a selling style on the shelf. This is why many small brands set a higher opening minimum and a lower reorder minimum. To keep reorders easy:
- Publish the reorder minimum next to the opening minimum.
- Let a store reorder a single style as long as it meets the per-style minimum.
How do you pick your wholesale minimum?
Work from your own numbers, not from other brands' minimums. Two questions set the lowest number you can accept. What does it cost you to process one order? How much product does a store need to sell your line well?
Hypothetical example (the numbers are made up to show the method; they are not benchmarks):
- Order cost. Picking, packing, invoicing and shipping one wholesale order costs you $40 in time and materials.
- Cost share. You want that cost to be no more than 10% of an opening order: $40 ÷ 10% = $400.
- Display depth. A store needs at least 4 styles with 6 units each to show the line properly. At a $20 average wholesale price, those 24 units come to $480.
- Opening minimum. Take the higher of the two figures and round up: a $500 opening minimum, plus a 6-unit minimum per style.
- Reorder minimum. A restock doesn't need to fill a display, so you accept a higher cost share. A $200 reorder minimum means handling costs 20% of the order, but your best sellers stay in stock.
Then check the number from the buyer's side. A boutique plans its purchases against an open-to-buy budget. If you offer free shipping above a threshold, line it up with your minimum. Finally, put the minimum on your wholesale price list and your line sheet so buyers see it before they start an order.
What are the signs your minimum is too high?
- Buyers who like the line ask you to lower the minimum.
- Orders come in just at the minimum, filled out with styles the store didn't really want.
- Stores place one order and never reorder.
- Small boutiques that suit your line pass, while larger stores order.
- Buyers ask to skip sizes or split case packs.
What to change:
- Lower the opening dollar minimum first.
- If stores keep asking to split case packs, cut them from 12 to 6.
- Add a reorder minimum, or lower the one you have.
- Let buyers mix any styles to reach the dollar minimum.
How do you set minimums in an ordering platform?
In Brandboom, a brand can set three kinds of minimum:
- a quantity minimum per product
- an order dollar minimum for the whole showroom
- a SKU minimum for each size or option
A presentation can have its own order and SKU minimums that override the showroom defaults. A presentation order minimum can only be lower: when both apply, the lower one is used. This lets you give chosen accounts, such as existing stockists who are reordering, their own presentation with a lower minimum. The minimum can be shown at checkout and either enforced or shown only as guidance.
FAQ
What is the difference between MOQ and EOQ?
MOQ is a seller's rule: the smallest order the seller will accept, counted in units or dollars. EOQ (economic order quantity) is a planning number: the order size that gives a buyer the lowest total cost of placing orders and holding stock. You might work out an EOQ for your own restocking and then find a factory's MOQ is higher. If so, the MOQ is the smallest order you can place unless you negotiate it down.
What does MOQ 500 mean?
It means the seller won't accept an order below 500 units. With factories, check what the 500 applies to: each style, each color of each style, or the whole order. If the MOQ is 500 per style per color and you want three colors, that is 1,500 units of one style. If a minimum is given in dollars instead, it is a minimum order value, such as $500 per order.
Should a new brand have a wholesale minimum?
Usually, yes. Without one, very small orders can cost more to pick, pack, invoice and ship than they bring in. Keep the minimum modest, though. Stores are taking a risk on a line they don't know. A low opening minimum, small per-style minimums and freedom to mix styles make that first test order easier for them to approve.