# What is MOQ – Minimum Order Quantity?

What is MOQ – Minimum Order Quantity? The minimum quantity a supplier requires. Affects cash flow and risk on new products.

## How it works in practice

A high MOQ plus an unproven product is a gamble. Always try a sample order before committing to a full MOQ.

## Related metrics

- Cash Flow — a high MOQ means a large lump-sum outlay
- Lead Time — together they determine order size
- COGS — a high MOQ means lower COGS
- Dropshipping — bypasses MOQ entirely

## Common misconception

'MOQ is fixed and non-negotiable.' It's usually negotiable. Have a supplier on Alibaba? Offer 10% more per unit in exchange for a lower MOQ.

## How to fix it

High MOQ? (1) a sample order of 10-20 units, (2) a higher price with a lower MOQ, (3) consolidate with another business, (4) find a local supplier.

## Real-world example

A jewelry store: a supplier required 5kg. Paying $3.30/gram instead of $2.75 dropped the MOQ to 2kg — a 60% risk reduction.

## Where to start

Always start with a sample order before committing to a full MOQ.

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Category: Operations · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/moq-minimum-order-quantity