what does moq mean in business

what does moq mean in business stands for “Minimum Order Quantity,” which is the smallest number of units a supplier is willing to sell. MOQ protects suppliers from unprofitable transactions and ensures efficient production or packaging. Buyers negotiating with manufacturers must consider whether the MOQ aligns with their sales volume and inventory strategy. Higher MOQs often lead to lower per-unit costs, but require more capital upfront. Understanding MOQ is vital in wholesale, private label, and dropshipping arrangements. Businesses can sometimes negotiate lower MOQs in exchange for higher prices or long-term contracts, depending on the supplier’s flexibility.