When buying on Alibaba, you’ll find suppliers set their own MOQs. Many people are wondering about the following top questions:
What is the MOQ meaning on Alibaba?
Alibaba MOQ stands for the minimum quantity of products that a supplier requires buyers to purchase in a single order on Alibaba. The MOQ can vary depending on the product, supplier, and other factors.
Note that the MOQs listed on the product page are not always set in stone, you can always negotiate with suppliers to get a lower MOQ and unit price as long as your order quantity is large enough.
Why do Alibaba suppliers set the MOQ?
Suppliers set the MOQ to cover their costs and make a minimum profit. Factories usually require a high MOQ due to a series of fixed costs like factory building, equipment, labor, utilities, material purchases, etc. Typically, factories don’t keep large amounts of raw materials or parts in stock. They purchase materials as needed from their own suppliers, who also have MOQ requirements.
Wholesalers and trading companies, on the other hand, often have more flexible MOQs because they don’t have the heavy costs of manufacturing. They buy in bulk from factories and sell in smaller quantities.
What is a 1 unit on Alibaba? How to buy 1 unit?
On Alibaba, the meaning of “1 unit” can vary depending on the product and supplier. Typically, “1 unit” can mean:
- A single item
- One set or kit
- A pack of products
- One carton
- One bag
- One roll
Can you buy 1 thing out of Alibaba?
Ys. However, buying a single product on Alibaba is not cost-effective because even though the product is cheap, shipping costs can be high. Another situation is to ask a supplier for a sample. But the cost of international express delivery will be relatively high.
In fact, Alibaba is primarily used as a B2B platform for bulk and custom orders. If you only want to purchase a small number of products or individual items, a better option is AliExpress. AliExpress is a subsidiary of the Alibaba Group, and it is a retail platform targeting consumers for small orders.
On AliExpress, you can find many sellers who also have stores on Alibaba. These sellers often provide dropshipping services, allowing you to place orders directly on AliExpress. This means you can buy small quantities of products at lower prices.
Note that custom products are usually not suitable for purchasing in small quantities or as individual items. Customization involves the supplier’s production processes and cost considerations. Producing a small number may not be cost-effective for suppliers, as they often require a MOQ to ensure profitability and cover production costs. Therefore, whether on Alibaba or AliExpress, you may be rejected.
How to reduce Alibaba MOQ?
Buy small quantities for personal use
You can find spot products on Alibaba’s “Ready to Ship” channel, usually without any MOQ restrictions. You can buy the desired quantity directly. It doesn’t make much difference whether your order is large or small because the supplier still have inventory after you place the order.
For high-value products like drones, typically have existing models available for selection, and there is no MOQ either. Additionally, I recommend comparing prices on AliExpress for these high-value products. If the prices are similar, you’d better choose AliExpress because they provide better after-sales service.
Order slightly below the MOQ
If the supplier’s MOQ is 1,000 units, you only want to start with 500 to test the market, like someone mentioned on Reddit.
Honestly, whether you can negotiate this MOQ down depends on the situation: Is the product high-value? Is it existing stock? Or is it a custom product, and how complex is the customization? For simpler products, big factories have an MOQ of 1,000 units, but small factories or workshops might be willing to do a few hundred.
When dealing with suppliers, emotions alone won’t work much. Business is business. What matters most is the order quantity, as it directly affects the supplier’s profits.
If you are close to the supplier’s MOQ, there’s room to negotiate. For example, if their MOQ is 1,000 units and you want 700 or 800, there’s a good chance you can work something out. Even if you only need 500 units, it’s worth asking. Sometimes, suppliers new to the wholesale business and seeing potential in you might be willing to compromise and accept your order.
But if your order is only 10%-20% of their MOQ, it’s tough to negotiate unless you’re buying high-value products or the suppliers have them in stock. In this case, suppliers will usually let you know upfront. Generally, suppliers won’t use MOQs to bluff. They just set the acceptable order range to give buyers a clear idea.
Here are some practical cases of how MOQs can vary by product value and characteristics.
For products in stock, you don’t need to consider MOQ as long as there is one item available in stock.
For custom products, low-value items (like toilet paper) usually require a higher MOQ. However, for high-value goods, suppliers are typically more flexible with lower MOQs.
The more complex the customization, the higher the MOQ will be. For simple customizations, like embroidering patterns on T-shirts, ordering 100 to 200 pieces is usually acceptable. But for products like seamless underwear, the custom MOQ is high because the production line is set up to handle thousands of pieces. Producing just 500 units could lead to a loss, and suppliers can’t accept that.
Place a large order quantity
If your order quantity is extremely large, such as requiring several containers to be shipped every month, you don’t need to worry about the MOQ at all. As a large customer, all suppliers will highly value your order.
In this situation, you have more leverage in price negotiations and can ask for lower product prices with the suppliers. For example, if a supplier provides a quote of $1.50 per piece, you can mention that another supplier offers $1.20 per piece to put pressure on them.
Final Thoughts
If you find it troublesome to negotiate a lower MOQ with suppliers on Alibaba and don’t want to spend too much time and effort, JingSourcing can help you.
Our MOQ starts from just $1,000. Located in the well-known Yangtze River Delta industrial clusters, we have established strong relationships with various local factories of all sizes, most of which are not listed on Alibaba. We can quickly find the right factory for your order. Plus, with our 10 years of experience in sourcing and customizing a wide range of consumer goods, we can negotiate a good MOQ and a favorable price for you.
