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Would you like to find out about low MOQ Alibaba suppliers? Not sure what MOQ is? Ready to wholesale on Alibaba but you don’t know what you have to watch out for concerning MOQ?
In the course of this tutorial, the reader will be directed to a basic understanding of the concept of MOQ as well as explaining how to search for suppliers with the least MOQ on Alibaba.
What is MOQ on Alibaba?
Understanding the term: MOQ on Alibaba. MOQ is used in business as an acronym for Minimum Order Quantity. It means the smallest amount of a particular product that a supplier is ready to supply in one sale.
Example of MOQ on Alibaba:
A supplier offers T-shirts on Alibaba for Circle Brand T-shirts with an MOQ of 100 pieces. This means that before you can get any T-shirts you have to order 100 of them. The MOQ is used because of the production cost and to guarantee the supplier makes a specific amount of revenue. The MOQs can often be discussed particularly where there is the expectation of a bigger order or an additional order in the future.
Whenever you use the Alibaba search engine to look for particular products, chances are that you will encounter a given seller providing information on MOQ.
Tip: What does 1 unit mean on Alibaba?
In the Alibaba system, “1 unit” is the smallest quantity per unit that a supplier wants to sell at a time. In this case, the definition of the unit depends on the product and supplier and can therefore be very different.
In some cases, a unit could mean one T-shirt, or one mobile phone depending on the type of product offered. For other products including mass-production goods a unit could be taken as a package of several items such as a packet of hundred screws or a carton of twenty-four bottles.
Why Alibaba wholesalers Set MOQ?
There are several reasons why suppliers on Alibaba set minimum order quantities:
- Production Efficiency: There are specific production capabilities with suppliers and their costs concerning manufacturing processes. It also allows them to set an MOQ that guarantees each production run they do is profitable by meeting their set minimum quantity.
- Economies of Scale: Increased volume usually produces favorable pricing as it allows manufacturers to enjoy the economies of bulk. To extend the overall buyer negotiating power, buyers can purchase a larger lot of materials.
- Logistics Optimization: Purchasing in small quantities may not be economical for the supplier as well as the buyer because of the costs of transportation and packaging.
- Building Relationships: This will mean that suppliers are likely to prefer buyers who show commitment through placing large orders because the two will be assured of mutually beneficial business in the future.
- Overhead Costs: Setting up production involves fixed costs, such as machinery setup, design, and labor. A MOQ ensures that these overheads are covered by producing a sufficient number of units to make the production run economically viable.
- Inventory Management: Suppliers often prefer to produce and sell in bulk to manage their inventory more efficiently. This avoids the complexities and costs associated with holding and managing large stocks.
How to Find Low MOQ Alibaba Supplier?
While it is not easy to look for suppliers with the lowest possible MOQs, it is not impossible at all. Here are some strategies to help you identify those elusive low MOQ suppliers on Alibaba:Â
1. Search and Filter
Start by searching for the product you are interested in on Alibaba. Use the filtering options to narrow down your search.
When using Alibaba’s search filters, specify your desired MOQ range to narrow down the results. By setting your maximum MOQ to a lower number, you’ll filter out suppliers with higher minimum order requirements.
2. Explore Different Suppliers
Don’t settle on the first supplier you find. Browse through multiple suppliers to compare MOQs and find one that suits your needs.
3. Use Alibaba’s RFQ (Request for Quotation) Service
This allows you to specify your needs, including desired MOQ, and have suppliers come to you with offers.
4. Consider Product Customization
Suppliers may be more willing to offer lower MOQs if you request customized products. By adding unique features or designs, you differentiate your order from others, making it more attractive for manufacturers.
5. Negotiate Terms
It is also possible to negotiate the MOQ number, the price, and any other terms. When it comes to negotiating with suppliers they are usually flexible especially if they hope to do business with you in the future.
How to negotiate with suppliers for MOQ?
For instance, if you are interested in wholesale 500 products from Alibaba and the suppliers’ MOQ of products is 1500, what should we do?
That is, the pricing aspect can be discussed from several points of view, such as the environmental factors.
As much as it may seem counterintuitive, the right choice is to appropriately inflate your product’s unit price so that the MOQ is not a problem.
“I would like to order 500 pieces as a trial order. Please let me know the price, even if it might be different from the MOQ of 1500 pieces.”
From the perspective of the agreement contract,
Reducing the order quantity from 1500 to 500 may require a significant increase in money to compensate for the costs, which obviously isn’t suitable for use as a strategy every time. You can try an agreement contract with these suppliers.
“Maybe I can meet the MOQ of 1500pcs, but I would like to split the order into two batches. I’d like to ship the first 500pcs to check the quality and then order the second batch if the quality is good. Remember, quality is paramount.”
Expert Strategies to Lower MOQs When Sourcing from Alibaba
Minimum Order Quantities for specific products are an issue for small businesses due to matters of testing new products or making an entry in a new market. Below, you will find the expert strategies that our specialists have prepared regarding negotiations with suppliers and getting lower MOQs when ordering from Alibaba.
1. Build Supplier Relationships First
It is not advisable to jump straight into negotiating MOQ with the suppliers; there is a need for a certain level of friendliness to be developed. The first things that need to be covered in the initial conversation are the prices, the shipping terms, and samples. Enquire from them about how much of a certain product they can produce, how soon they can deliver a product, and how they ensure they produce quality products. This strategy just tells them that you are interested and this may cause them to reduce their MOQs during subsequent negotiations.
2. Competition in Suppliers and Using Price Quotes
When sourcing specific products it is recommended to talk to at least two or three suppliers. Ask them for their quotes and further get to know their quality by requesting samples. Particularly with lower priced products, you can usually convince them to let you try it for free at least once. If you have two similar offers then you can use these price quotes to negotiate a better MOQ. Certain suppliers may cut the MOQ for the first order specifically if they know that other businesses are vying for your company’s patronage.
3. Identifying Low MOQ Suppliers and Online Trading Platforms
Some suppliers or platforms navigate more towards the segments where buyers look for lower volumes. In addition to 1688.com, here are some other platforms worth exploring:
Global Sources: Generally, suppliers on the platform of Global Sources are a little more willing to set lower and more flexible MOQs. It is a valuable store for electronics, gifts, and fashion accessories.
Made-in-China.com: Another site that gives a detailed list of manufacturers with more liberal order uptick terms. A majority of the suppliers here have regularly dealt with much lesser and, mainly, global consumers.
Taobao: Despite having been designed mainly for business-to-consumer transactions, Taobao allows clients to source almost any product in small quantities. By outsourcing from a sourcing agent, you can negotiate cheaply in large quantities as compared to the MOQ.
AliExpress: AliExpress is Alibaba Group’s continuation where most products are priced much cheaper for smaller orders with little to no minimum quantity requirement. This is particularly suitable when launching new products since one can trial producer output before going large scale.
These platforms provide a wide array of supplier types, there are some offering lower quantity orders or those with readily available inventory.
How to Reduce MOQ for Alibaba Suppliers?
While it may not always be possible to negotiate the MOQ down to your desired quantity, here are some strategies that can help you achieve lower MOQs:
- Bulk Orders: Cluster them by sorting products from the same supplier into one order so that you place one order for many related products. This can sometimes even result in lower MOQ numbers.
- Long-Term Partnership: Indicate your interest in engaging the supplier in a long-term business partnership. If made to believe that they will get your orders in the future, they might be willing to agree with a small MOQ.
- Show Your Potential: You can therefore use the following information to persuade the supplier of the proposed firm that you are a long-term customer: A business plan The growing market in the proposed firm.
- Collaborate with Other Buyers: Identify with other buyers who need similar or identical products provided by the same vendor. Concentrating your orders as a group can serve a variety of purposes including helping to satisfy higher MOQs while at the same time making it possible for each buyer to gather smaller quantities.
- Offer to Pay a Higher Unit Price: Suppliers used MOQs to guarantee they make their sales worthy of being made. This reason can be justified by the willingness to pay a higher price for each unit of the product than the other buyer.
- Ask for Stock Items: Original equipment manufacturers might have different MOQs depending on if they are ordering the products that already exist or ordering specially made products.
- Look for MOQ-Friendly Suppliers: This can often be true because some of the suppliers target mainly small businesses and may thus provide more reasonable MOQs. They are usually hidden in profiles and a customer’s feedback should be carefully analyzed.
A Real-Life Example of How MOQ Negotiation Works
For instance, if the supplier’s MOQ is 1000 units but you need only 400, you might handle it like this:
You: But initially we intend to order 400 sets to test the market.” How can we change the MOQ for this batch?
Supplier: “Our MOQ is 1000 units.”
You: I get that, but their goal is long-term, so they’ll accept less commission.” If this test order is successful, future orders will be far larger. He said DS never came through with 400 units for the first run on any of the products he ordered for me so could he do 600 for this first run?”
Supplier: Managing director: “I’ll ask my manager about this and come back to you.”
This strategy can quite often get the MOQ closer to what you require.
Flexible Solutions If MOQ Remains High
If, after negotiations, the supplier still insists on a higher MOQ, consider these options:
- Increase the Price Per Unit: Offer to pay a slightly higher price to get an MOQ that is lower than the company’s minimum requirement. For instance, if the initial price which was agreed with the supplier is $4 per unit for 1000 units, one can counteroffer $4.50 per unit for 500 units.
- Increase the MOQ Gradually: Suggest we go up from 400 to 600 to meet the remaining capacity without going up to 1000.
- Bundle with Other Orders: It is also useful to inquire whether the supplier is on other orders and whether they can find a way to include your less large order in a new batch.
Other Opportunities for Low MOQ Buyers
- Factory Overruns or Overstock: There are user orders, which may be canceled by the user thereby resulting in excess stock by factories. You may ask whether you can purchase overstock goods because the majority of them do not have an MOQ or may have a low one. Such opportunities can be found on websites such as Off-Price or Liquidation.com.
- Wholesale Markets: The author also pointed out that if consumers need to buy in large quantities, it is suggested to visit various physical wholesale markets such as Yiwu International Trade Market or the wholesale district in Guangzhou for less restricted MOQ negotiation.
Evaluating and Verifying Low MOQ Suppliers
Once you’ve identified potential low MOQ suppliers on Alibaba, it’s crucial to evaluate their credibility and reliability before committing:
1. Supplier Profile
Carefully review the supplier’s profile, including their company information, years of operation, certifications, and any customer reviews or ratings available on Alibaba’s platform.
2. Product Samples
Request product samples from the supplier before placing a large order. This allows you to assess product quality firsthand and verify if it meets your standards.
3. Communication Skills
Assess the performance of the supplier concerning the communication and response to the needs of the business. You want to establish a good relationship with a reliable supplier that responds shortly and clearly to your questions.
4. Factory Audit
It may be wise to perform a factory visit, whether you visit the supplier’s premises yourself and run a factory audit or need to contract the services of a third-party inspection service provider to evaluate the supplier factory, the supplied products’ quality control procedures, and the supplier’s production capacity.
5. Order Gradually
One crucial point when sourcing is if you are unsure of the credibility of a supplier, it is advisable to order in small quantities first to establish their credibility in the market before ordering in large quantities.
Utilize Sourcing Agents for Hard-to-Negotiate MOQs
When in contact with suppliers that set very high MOQ, then Owlsourcing’s sourcing specialists are likely to come in handy. We have developed goodwill with many manufacturers and our team can leverage this and get better deals as we can lower the MOQ to what you want. In addition to Alibaba, Owlsourcing can use other platforms such as DHGate suitable for small orders, or Tmall Global a B2C cross-border e-commerce marketplace suited for low-quantity inventory. By building strong relations with our industry partners and market research, Owlsourcing guarantees you secure the lowest possible price for your products without compromising their quality.
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Final thoughts
Low MOQ Alibaba Suppliers are an essential part you should not overlook when considering wholesaling products from Alibaba. Although some Alibaba suppliers may have a minimum order quantity higher than your expectation, you can still negotiate with them. This might involve increasing the price or perhaps offering assurances of long-term cooperation.
Of course, choosing a China sourcing agent can also help you find Alibaba suppliers with low minimum order quantities. We hope this article helps you understand MOQ, and please contact us if you have any further questions.
4 thoughts on “How to Find Low MOQ Alibaba Supplier”
Finding a good supplier in China can be hard because many manufacturers don’t speak English well and only work with export companies or buying agents. This means that they might require you to order a lot of products, which can be difficult for people who import from other countries.
Hi Tahaa. What you mentioned is indeed one of the common challenges when working with Chinese suppliers. Language barriers and suppliers’ business models can indeed lead to difficulties in communication and collaboration.
For small-volume import needs, an effective strategy is to find suppliers that specialize in serving small businesses or individual buyers, or contact Owlsourcing to bridge these gaps. In this process, patience and continuous market research are very important.
I hope these suggestions are helpful to you.
Fascinating read on MOQs! I’ve been importing for a while, and your insights were spot-on. Could you elaborate on specific industries or products where negotiating MOQs is more flexible?
Hey Olivia. I’m very happy to know that you were interested in my article and found it useful.
Regarding minimum order quantity (MOQ) flexibility, this often depends on the specific industry and product type. Generally speaking, the MOQ of standard products with a low degree of customization, such as textiles, small electronic products and some conventional consumer goods, often has more room for negotiation. In addition, suppliers are more willing to provide lower MOQs for products with shorter production cycles and easier access to raw materials.
Conversely, for products that are highly customized or expensive to produce, such as specific machinery or high-end electronics, the MOQ is usually more stringent because the production of these products involves more upfront investment and risk.
You may also consider working with small or emerging suppliers. You may find more room for negotiation as they may be more willing to lower the MOQ in order to build a customer relationship.
Hope this information is helpful to you.