Minimum order quantity (MOQ)
Also called minimum order
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is minimum order quantity (MOQ)?
A minimum order quantity (MOQ) is the smallest amount a supplier will sell in one order, set as a number of units or cases or as a dollar value. Manufacturers set MOQs for distributors, and distributors sometimes set them, or charge a small-order fee, for their own customers.
Minimum order quantity (MOQ) example
A manufacturer sells a specialty gasket only in quantities of 500. A distributor that needs 50 buys them from a master distributor at a higher unit cost.
Related terms
- Master distributorA master distributor is a distributor that sells only to other distributors, not to end users.
- Case packA case pack is the number of units a manufacturer packs into one case or carton, such as 12 tubes of caulk or 100 connectors.
- Economic order quantity (EOQ)Economic order quantity (EOQ) is the order size that minimizes the combined cost of ordering and holding an item with steady demand.
- Freight termsFreight terms are the part of a sale that says who pays for shipping and how the cost is billed.
