Minimum Order Quantity (MOQ)
Minimum order quantity (MOQ) is the smallest number of units a supplier will sell in a single order. It is set by the supplier, not the buyer, and it can apply to an entire order or to each individual SKU.
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01 — Overview
MOQ, defined
MOQ stands for minimum order quantity — the smallest amount of a product a supplier is willing to sell in a single order. It is set by the supplier, driven by what makes production runs, packaging, or shipping worthwhile on their side, not by what the buyer wants to purchase.
Set by the supplier
Driven by their production, packaging, or shipping cost — not your target.
Per order or per SKU
A whole-order minimum behaves very differently than an item-specific one.
Only a problem past ~3-4 months
Below that, it just matches how you'd have ordered anyway.
Can override your EOQ
When the calculated economic order quantity falls below MOQ.
MOQ (minimum order quantity) is the smallest quantity a supplier will sell in one order — it is set by the supplier to make production or shipping worthwhile on their end, not by the buyer.
MOQ can apply per order (a $500 order minimum) or per SKU (500 units of one item minimum) — the two behave very differently for planning.
A high MOQ only becomes a real problem once it forces you to hold more stock than you would normally order in one cycle; below that point it just matches how you would have ordered anyway.
A supplier might set an MOQ of 500 units for a manufactured item because running a smaller production batch does not cover their setup cost, or an MOQ of $1,000 per order for a distributor because smaller orders do not clear their shipping and handling cost.
02 — Worked example
A minimum order quantity example
The number itself does not tell you if an MOQ is a problem; it only matters relative to how fast you actually sell through the stock.
Same demand, very different amount of tied-up cash
Say a supplier sets an MOQ of 500 units for a SKU, and you sell that item at roughly 150 units a month. Ordering the MOQ commits you to about 3.3 months of supply in one purchase. Compare that to an MOQ of 200 units on the same demand — barely more than a normal order, so the MOQ is not really constraining anything.
- MOQ 500, monthly usage 150 → covers ~3.3 months of supply
- MOQ 200, monthly usage 150 → covers ~1.3 months, close to normal reorder size
- The gap between the two determines whether the MOQ forces excess stock
03 — Per-order vs. per-SKU
Per-order MOQ vs. per-SKU MOQ
Suppliers apply MOQ two different ways, and the difference matters for how you plan purchases.
One is easy to batch around; the other isn't
A per-order MOQ sets a minimum for the whole order — for example, a $500 order minimum you can hit by mixing several SKUs together. A per-SKU MOQ sets a minimum on each individual item, meaning you cannot substitute one product for another to reach the threshold. A per-order MOQ is usually easy to plan around; a per-SKU MOQ forces you to commit to a fixed quantity of one specific product regardless of how fast it actually sells.
04 — Why suppliers set it
Why suppliers set MOQ requirements
Small orders cost a supplier roughly the same to process as large ones — the order simply isn't profitable for them below a certain volume.
Manufactured goods
Custom production runs carry real setup costs, so MOQs tend to run higher.
Distributors
Often set lower, order-value-based MOQs instead of per-SKU minimums, since there's no production line involved.
Fixed processing cost
Picking, packing, and shipping paperwork cost roughly the same regardless of order size.
05 — Planning around it
Planning around a supplier MOQ
Treat MOQ as an input to your reorder planning, not a number to work around after the fact.
Compare against usage rate
Check the MOQ against your average usage for that SKU before committing to it.
Weigh holding cost vs. discount
If it covers more than 3-4 months of demand for a non-critical item, the cash tied up may outweigh any discount.
Fast movers vs. slow sellers
For items you'd order that volume anyway, MOQ doesn't change your planning — it matters most for slow sellers.
06 — MOQ vs. EOQ
MOQ vs. EOQ: which number actually binds
MOQ is a constraint set by the supplier. EOQ (economic order quantity) is a calculation the buyer runs to minimize their own ordering and carrying costs.
When the calculated EOQ falls below the MOQ
The supplier's floor becomes the binding number — you order the MOQ regardless of what the EOQ formula says, since the supplier won't sell you less.
See the full economic order quantity guide for how EOQ is calculated.
07 — Software
What software can (and can't) do for MOQ
StockFlow tracks the stock levels and sales velocity you need to evaluate a supplier MOQ against your own usage — it does not enforce MOQ rules during ordering.
Sales velocity per SKU
The data you need to divide MOQ by usage and see the real coverage.
Purchase orders
Create and track POs per supplier — MOQ evaluation happens before you place the order.
Frequently asked questions
What does MOQ stand for?
MOQ stands for minimum order quantity — the smallest quantity of a product a supplier will accept in a single order.
What is minimum order quantity in simple terms?
It is the smallest amount you are allowed to buy from a supplier in one order. If a supplier sets an MOQ of 500 units, they will not sell you fewer than 500 units of that item in a single purchase.
Who sets the MOQ — the buyer or the supplier?
The supplier sets MOQ, based on what makes production, packaging, or shipping worthwhile for them. The buyer has to plan purchases around it, not the other way around.
Is MOQ per order or per SKU?
It depends on the supplier. A per-order MOQ is a minimum for the whole purchase, which can be met by combining several products. A per-SKU MOQ applies to one specific item and cannot be met by substituting other products.
What is the difference between MOQ and EOQ?
MOQ is a constraint set by the supplier — the smallest quantity they will sell you. EOQ (economic order quantity) is a calculation the buyer runs to find the order size that minimizes their own ordering and carrying costs. If the calculated EOQ falls below the supplier MOQ, the MOQ becomes the binding constraint.
How do I know if an MOQ is too high?
Divide the MOQ by your average usage per period to see how much supply it covers. If it covers far more than your normal reorder cycle — commonly more than 3-4 months for a non-critical item — the holding cost of the excess stock may outweigh any per-unit discount the MOQ unlocks.
Does StockFlow track supplier MOQs?
StockFlow tracks the stock levels and sales velocity you need to evaluate a supplier MOQ against your own usage. It does not enforce MOQ rules during ordering, but the data needed to judge whether an MOQ makes sense for a given SKU is there.
Know your real usage before you commit to an MOQ
StockFlow tracks sales velocity per SKU so you can judge whether a supplier's minimum order actually makes sense — free to start.