#1 TikTok Ads Spy Tool

A Better Way to Make TikTok Ads Dropshipping & TikTok For Business

  • Find TikTok winning products & TikTok dropshipping ads.
  • Analyze TikTok advertisers
  • Get the Latest TikTok Shop Data.
Try It Free

4 Tricks To Get Alibaba Suppliers To Lower Their Minimum Order Quantity (MOQ)

Published on: December 9 2022 by MyWifeQuitHerJob Ecommerce Channel

4 Tricks To Get Alibaba Suppliers To Lower Their Minimum Order Quantity (MOQ)

4 Tricks To Get Alibaba Suppliers To Lower Their Minimum Order Quantity (MOQ)

startTime durationTime text
00:00:00 00:00:03 don't have the money to buy 500 units
00:00:01 00:00:05 from your wholesale supplier and do you
00:00:03 00:00:07 wish you could order less up front from
00:00:05 00:00:09 your factory well here's the exact
00:00:07 00:00:11 process that i use to negotiate down the
00:00:09 00:00:15 minimum order quantities for my first
00:00:11 00:00:15 bulk order of private label products
00:00:19 00:00:23 now the minimum order quantity is the
00:00:21 00:00:25 lowest quantity of products or services
00:00:23 00:00:27 that a supplier is willing to produce or
00:00:25 00:00:29 provide now every supplier will have
00:00:27 00:00:30 different moqs for different products
00:00:29 00:00:32 and there are different size factories
00:00:30 00:00:35 that cater to different size businesses
00:00:32 00:00:36 now some suppliers might have an mmq of
00:00:35 00:00:39 a thousand units while others might have
00:00:36 00:00:41 an moq of 10 000 units the minimum order
00:00:39 00:00:43 quantity will vary depending on the
00:00:41 00:00:45 supplier and the product or service
00:00:43 00:00:46 being offered now if you find that your
00:00:45 00:00:49 factories are quoting you extremely high
00:00:46 00:00:50 moqs then that factory is likely out of
00:00:49 00:00:52 your league you should look for
00:00:50 00:00:54 factories that work with businesses your
00:00:52 00:00:56 size now you might think that this is
00:00:54 00:00:58 unfair but when it comes to working with
00:00:56 00:01:00 factories it doesn't make sense for a
00:00:58 00:01:01 manufacturer to produce items for you
00:01:00 00:01:03 unless they can make money on the
00:01:01 00:01:05 transaction now if you think about a
00:01:03 00:01:07 factory as an assembly line it's not
00:01:05 00:01:09 cost effective for a manufacturer to
00:01:07 00:01:11 create a brand new process for your
00:01:09 00:01:14 product unless you can exceed a certain
00:01:11 00:01:15 volume threshold after all manufacturers
00:01:14 00:01:18 must bear the large upfront cost of
00:01:15 00:01:19 training machinery and tooling now
00:01:18 00:01:21 making money with your own private label
00:01:19 00:01:24 products is all about scale and you have
00:01:21 00:01:25 to be willing to meet a factory's moq in
00:01:24 00:01:27 order to get the lowest prices possible
00:01:25 00:01:28 for your products
00:01:27 00:01:30 now as i mentioned earlier every vendor
00:01:28 00:01:31 is going to have a different moq for a
00:01:30 00:01:34 given type of product some wholesale
00:01:31 00:01:35 suppliers only work in extremely large
00:01:34 00:01:37 quantities whereas other vendors are
00:01:35 00:01:40 willing to sell you as few as 100 units
00:01:37 00:01:42 at a time and this mlq is dictated by
00:01:40 00:01:44 the type of vendor that you're working
00:01:42 00:01:46 with now are you working with a factory
00:01:44 00:01:48 a factory is a type of supplier that
00:01:46 00:01:50 actually manufactures your products for
00:01:48 00:01:51 sale in an ideal world you want to work
00:01:50 00:01:53 with the manufacturer directly because
00:01:51 00:01:54 your prices are going to be lower
00:01:53 00:01:56 there's going to be no middlemen and no
00:01:54 00:01:58 additional markups you can create custom
00:01:56 00:02:00 products and quickly make adjustments
00:01:58 00:02:02 during the manufacturing process but the
00:02:00 00:02:04 main downside of working with a factory
00:02:02 00:02:05 is that they have higher moq's in
00:02:04 00:02:07 addition it's often difficult to work
00:02:05 00:02:09 with the factory directly because it
00:02:07 00:02:12 requires navigating through a maze of
00:02:09 00:02:14 complex relationships for example many
00:02:12 00:02:15 factors in china won't even tok to you
00:02:14 00:02:18 unless you go through a rep or a
00:02:15 00:02:19 sourcing agent now that being said if
00:02:18 00:02:21 you can buy product in larger quantities
00:02:19 00:02:24 then working with a factory is the best
00:02:21 00:02:26 way to get the lowest prices possible
00:02:24 00:02:28 you can also work with a trading company
00:02:26 00:02:29 a trading company doesn't actually make
00:02:28 00:02:31 their own products instead they work
00:02:29 00:02:33 with multiple factories to create
00:02:31 00:02:34 products for their clients they already
00:02:33 00:02:36 have close relationships in place with
00:02:34 00:02:38 trusted manufacturers and act as a
00:02:36 00:02:39 middleman to facilitate product creation
00:02:38 00:02:41 now
00:02:39 00:02:42 the main benefit of going with the
00:02:41 00:02:45 trading company is that they can offer
00:02:42 00:02:47 you lower mlqs in a much larger product
00:02:45 00:02:48 selection because they work with
00:02:47 00:02:50 multiple factories across many different
00:02:48 00:02:53 disciplines they can often help you with
00:02:50 00:02:54 a variety of your sourcing needs now the
00:02:53 00:02:56 downside of course is that they're going
00:02:54 00:02:58 to be more expensive in addition you
00:02:56 00:02:59 have less control over the details of
00:02:58 00:03:01 your final product because all
00:02:59 00:03:03 communication with the factory must go
00:03:01 00:03:04 through the trading company now the
00:03:03 00:03:06 grand scheme of things it doesn't matter
00:03:04 00:03:08 whether you work with a factory or a
00:03:06 00:03:10 trading company as long as you can make
00:03:08 00:03:12 a decent profit with your goods in fact
00:03:10 00:03:14 finding the right supplier is often a
00:03:12 00:03:17 self-selecting process after all you may
00:03:14 00:03:18 not be able to meet the moq of a factory
00:03:17 00:03:20 and a factory may not even be willing to
00:03:18 00:03:22 speak with you unless you have the right
00:03:20 00:03:24 relationships in place now over the
00:03:22 00:03:26 years running my store over at bumblebee
00:03:24 00:03:28 linens i've worked with both factories
00:03:26 00:03:30 and trading companies with great success
00:03:28 00:03:32 and your order size will dictate who you
00:03:30 00:03:34 get to work with now once you have more
00:03:32 00:03:36 purchasing power you can gradually work
00:03:34 00:03:37 your way up the chain and push down your
00:03:36 00:03:39 product costs
00:03:37 00:03:41 now how do you find the moq well you
00:03:39 00:03:43 just ask here's a sample script that i
00:03:41 00:03:44 use hi vendor my name is steve and i'm
00:03:43 00:03:46 the purchasing agent from bumblebee
00:03:44 00:03:47 linens a store in the u.s that sells
00:03:46 00:03:48 handkerchiefs we're interested in
00:03:47 00:03:50 carrying many of the items that you have
00:03:48 00:03:53 to offer i would like to get pricing and
00:03:50 00:03:56 availability for the following items
00:03:53 00:03:57 please send pricing in 500 1000 and 5000
00:03:56 00:04:00 unique quantities if you can send us
00:03:57 00:04:02 your product catalogs lead times and moq
00:04:00 00:04:03 we would greatly appreciate it
00:04:02 00:04:04 now one thing you'll notike about the
00:04:03 00:04:06 letter i just toked about is that i
00:04:04 00:04:09 specifically asked for pricing in 500
00:04:06 00:04:11 1000 and 5 000 unit quantities and i use
00:04:09 00:04:13 these numbers to fill out the supplier
00:04:11 00:04:15 if the vendor is not in my league then
00:04:13 00:04:17 they won't even reply on the flip side
00:04:15 00:04:18 attaching real numbers to my initial
00:04:17 00:04:21 request lets the vendor know that i'm
00:04:18 00:04:22 serious about purchasing quantity now
00:04:21 00:04:23 depending on whether you're working with
00:04:22 00:04:25 a large factory a small town
00:04:23 00:04:27 manufacturer or a trading company you'll
00:04:25 00:04:29 often receive a variety of moqs from
00:04:27 00:04:31 your suppliers and some are just going
00:04:29 00:04:32 to be way too high and you should simply
00:04:31 00:04:35 ignore these suppliers altogether they
00:04:32 00:04:37 are clearly out of your lead some moqs
00:04:35 00:04:38 will be suspiciously low which generally
00:04:37 00:04:41 means that you can get a better deal
00:04:38 00:04:42 elsewhere now the key is to work with a
00:04:41 00:04:45 supplier that is within your range in
00:04:42 00:04:48 terms of moq and price for example if a
00:04:45 00:04:50 supplier has an moq of 500 units and
00:04:48 00:04:51 you're willing to buy 300 or 400 units
00:04:50 00:04:53 well then that's well within the
00:04:51 00:04:55 ballpark but if you were off by more
00:04:53 00:04:57 than a factor of two or three then i'd
00:04:55 00:05:00 probably move on now here's how to
00:04:57 00:05:01 negotiate your moq's down now if you're
00:05:00 00:05:03 in the ballpark of a supplier's moq then
00:05:01 00:05:05 there are a variety of tactiks that you
00:05:03 00:05:07 can use however the effectiveness of
00:05:05 00:05:08 these strategies that i'm about to tok
00:05:07 00:05:11 about largely depend on whether the
00:05:08 00:05:13 supplier respects you as a buyer if the
00:05:11 00:05:14 supplier does not believe that you're
00:05:13 00:05:16 legit then they will likely not
00:05:14 00:05:18 negotiate with you at all in fact they
00:05:16 00:05:20 may ignore you altogether or give you
00:05:18 00:05:22 prices that are ridiculously high to
00:05:20 00:05:23 make you go away
00:05:22 00:05:26 therefore the first big tip that i have
00:05:23 00:05:29 to give is to always act larger than you
00:05:26 00:05:31 really are project a sense of confidence
00:05:29 00:05:32 in your communications show the supplier
00:05:31 00:05:34 that you know what you're doing even if
00:05:32 00:05:35 you are a beginner because think about
00:05:34 00:05:37 it this way every good supplier is
00:05:35 00:05:39 bombarded with hundreds of sourcing
00:05:37 00:05:42 requests day in and day out and you must
00:05:39 00:05:44 stand out so do your research and try to
00:05:42 00:05:45 not ask any bone-headed questions that
00:05:44 00:05:47 can be googled
00:05:45 00:05:50 so here's tactik number one try to close
00:05:47 00:05:52 the deal right away now in some cases a
00:05:50 00:05:53 vendor will give you a high mlq but they
00:05:52 00:05:55 might be willing to produce less units
00:05:53 00:05:57 up front if they think that you're going
00:05:55 00:05:59 to be a long-term customer now for my
00:05:57 00:06:01 store there have been occasions where i
00:05:59 00:06:03 couldn't meet the mlq but i was willing
00:06:01 00:06:05 to pay for sixty percent of the units
00:06:03 00:06:08 immediately in upfront now typical
00:06:05 00:06:10 payment terms are 30 down and 17 upon
00:06:08 00:06:11 completion but when we directly asked
00:06:10 00:06:13 for their bank information and offered
00:06:11 00:06:15 to wire them the money immediately the
00:06:13 00:06:17 supplier took the deal
00:06:15 00:06:19 negotiation tactik number two offer to
00:06:17 00:06:20 pay higher price now when it comes to
00:06:19 00:06:22 negotiating with the vendor it often
00:06:20 00:06:25 comes down to the money and not the
00:06:22 00:06:27 actual moq now if producing less units
00:06:25 00:06:29 makes sense financially for the supplier
00:06:27 00:06:30 then they'll likely go for it as a
00:06:29 00:06:33 result it's about finding that middle
00:06:30 00:06:34 ground where both parties are satisfied
00:06:33 00:06:37 now one thing that i like to do is offer
00:06:34 00:06:39 to pay higher prices for less units for
00:06:37 00:06:41 example if the mlq is 500 units at a
00:06:39 00:06:44 buck apiece i might offer to buy 300
00:06:41 00:06:46 units at a buck 25 a piece now if you're
00:06:44 00:06:48 in the ballpark of a vendor's profit
00:06:46 00:06:50 requirement you can sometimes get them
00:06:48 00:06:52 to agree to a lower mlq
00:06:50 00:06:54 here's negotiating tactik number three
00:06:52 00:06:56 offer to increase the overall order size
00:06:54 00:06:58 now this strategy is generally more
00:06:56 00:07:00 applicable if you're trying to purchase
00:06:58 00:07:02 many different styles of the exact same
00:07:00 00:07:03 product now with my company we often
00:07:02 00:07:05 purchase our handkerchiefs in a variety
00:07:03 00:07:08 of different colors but in general each
00:07:05 00:07:09 style carries its own moq for example we
00:07:08 00:07:11 have to purchase a minimum amount of
00:07:09 00:07:13 ivory hankies to make the cost of the
00:07:11 00:07:15 dyeing process worth it to the vendor
00:07:13 00:07:17 now because we don't sell nearly as many
00:07:15 00:07:18 ivory hankies as we do white
00:07:17 00:07:20 handkerchiefs we simply offer to
00:07:18 00:07:22 increase our overall order of white
00:07:20 00:07:23 hankies by a certain percentage to
00:07:22 00:07:25 offset the cost and usually that's
00:07:23 00:07:28 enough to sway the vendor to waive the
00:07:25 00:07:30 mlq for our ivory hankies once again it
00:07:28 00:07:32 all comes down to the money negotiating
00:07:30 00:07:34 tactik number four paying and
00:07:32 00:07:36 installments now if you can't pay for a
00:07:34 00:07:38 supplier's moq all in one shot then it's
00:07:36 00:07:40 worth asking if they will produce the
00:07:38 00:07:42 entire production run and ship you your
00:07:40 00:07:44 order in installments for example if
00:07:42 00:07:46 their moq is a thousand units then offer
00:07:44 00:07:48 to pay for half up front and then the
00:07:46 00:07:50 remaining half in three months not every
00:07:48 00:07:52 vendor will be willing to do this and
00:07:50 00:07:55 once again it all hinges on whether the
00:07:52 00:07:56 vendor respects you as a company if they
00:07:55 00:07:58 believe that you're good for the money
00:07:56 00:08:00 then they may agree to this arrangement
00:07:58 00:08:02 but it doesn't hurt to ask
00:08:00 00:08:04 now what do you do when you exceed the
00:08:02 00:08:07 moq now ironically one of the biggest
00:08:04 00:08:09 mistakes that i see my students make is
00:08:07 00:08:11 that they don't order enough product for
00:08:09 00:08:12 their first order for example one of my
00:08:11 00:08:14 students was extremely conservative and
00:08:12 00:08:16 only ordered 500 units for their initial
00:08:14 00:08:19 shipment but she ended up selling all
00:08:16 00:08:21 500 units in a single month and missed
00:08:19 00:08:23 out on the entire holiday shopping
00:08:21 00:08:24 season now whether or not you feel
00:08:23 00:08:26 comfortable placing larger orders is
00:08:24 00:08:28 your prerogative but eventually your
00:08:26 00:08:30 e-commerce business will outgrow your
00:08:28 00:08:32 existing moq and it's in your best
00:08:30 00:08:34 interest to renegotiate in general you
00:08:32 00:08:36 should ask for lower pricing whenever
00:08:34 00:08:38 you meet a new quantity threshold and
00:08:36 00:08:40 this threshold is largely determined by
00:08:38 00:08:42 the type of product that you sell
00:08:40 00:08:43 now if you start out ordering 500 units
00:08:42 00:08:46 and all of a sudden you're placing
00:08:43 00:08:47 orders of a thousand or 2 000 units then
00:08:46 00:08:50 you should definitely try to negotiate
00:08:47 00:08:51 for lower pricing in fact i would argue
00:08:50 00:08:53 that you should make a habit of asking
00:08:51 00:08:55 for lower pricing no matter what after
00:08:53 00:08:56 all if you do not ask you will not
00:08:55 00:08:58 receive now if you have a good
00:08:56 00:08:59 relationship with your vendor they'll be
00:08:58 00:09:01 willing to work with you to find a
00:08:59 00:09:02 mutually beneficial price
00:09:01 00:09:05 now here are some gotchas when
00:09:02 00:09:06 negotiating whenever you negotiate with
00:09:05 00:09:08 a supplier you have to be extremely
00:09:06 00:09:10 careful with quality control some
00:09:08 00:09:12 vendors want your business so badly that
00:09:10 00:09:14 they're willing to negotiate only to end
00:09:12 00:09:16 up compromising on the quality of your
00:09:14 00:09:18 products one time we struck a fantastik
00:09:16 00:09:20 deal with the vendor for a shipment of
00:09:18 00:09:22 hankies only to find they used a much
00:09:20 00:09:24 thinner and lower quality fabric now the
00:09:22 00:09:26 way to combat quality control attrition
00:09:24 00:09:28 is to create a quality control checklist
00:09:26 00:09:30 and use an inspector in china to inspect
00:09:28 00:09:32 the goods before they are shipped a
00:09:30 00:09:34 quality control checklist is a document
00:09:32 00:09:36 that specifies every minute detail about
00:09:34 00:09:38 the product that you're trying to source
00:09:36 00:09:40 for example whenever we purchase linen
00:09:38 00:09:42 napkins we specify the width the exact
00:09:40 00:09:44 measurements the exact color and then we
00:09:42 00:09:46 give this checklist along with a golden
00:09:44 00:09:48 sample of our product to an inspector
00:09:46 00:09:49 that we hire in china
00:09:48 00:09:51 following these two steps will ensure
00:09:49 00:09:53 that your products will arrive with the
00:09:51 00:09:54 quality that you expect
00:09:53 00:09:56 now when it comes to minimum order
00:09:54 00:09:57 quantities it can be frustrating to find
00:09:56 00:10:00 a vendor that meets your pricing and
00:09:57 00:10:01 quantity requirements but rest assured
00:10:00 00:10:04 there is a supplier out there that
00:10:01 00:10:05 caters to the size of your business now
00:10:04 00:10:07 remember running an ecommerce business
00:10:05 00:10:09 is an iterative process and you have to
00:10:07 00:10:11 gradually work your way up to the top
00:10:09 00:10:13 start out small with a low moq supplier
00:10:11 00:10:15 until your business gets some traction
00:10:13 00:10:17 and then reinvest your profits with
00:10:15 00:10:19 factories to get better pricing hope you
00:10:17 00:10:20 enjoyed this video now if you like what
00:10:19 00:10:22 you saw there's actually a lot more
00:10:20 00:10:24 where that came from if you subscribe to
00:10:22 00:10:25 my channel below and if you are
00:10:24 00:10:27 interested in learning how to sell
00:10:25 00:10:29 physical products online then click over
00:10:27 00:10:30 here and take my free six day mini
00:10:29 00:10:32 course where i'll walk you through
00:10:30 00:10:34 everything that you need to know to get
00:10:32 00:10:36 started in e-commerce thanks for
00:10:34 00:10:36 watching