Why is Minimum Order Quantity (MOQ) Important?

2. Reasons for Setting Minimum Order Quantities

Production Costs and Economies of Scale Producing larger batches lowers unit costs. Each stage – from purchasing raw materials to packaging – has fixed costs, which are better distributed over larger orders. Such orders allow manufacturers to optimally use raw materials, which in turn results in more competitive prices for our customers.

Operational Efficiency Larger orders enable manufacturers to better plan production and logistics, which translates into timely deliveries and maintaining high product quality. This efficiency allows us to effectively manage ordering and delivery processes, benefiting both us and our customers.

Product Customization We offer customers the option to order products according to their specifications, including white-label or private-label options. The customization process involves additional costs for design and production setup. A minimum order quantity ensures that these costs are economically justified for both manufacturers and customers.