A low MOQ makes it easier for businesses to start or expand their operations by allowing them to purchase smaller quantities initially.

Reduced risk:

Lower MOQ allows for more flexible ordering and reduces the risk of being stuck with excess inventory if demand changes.

Flexibility:

Smaller orders can allow businesses to adjust their purchasing based on market trends and customer needs.

Considerations for Suppliers:

Fewer units per order can lead to higher per-unit costs for the supplier due to setup, labor, and other fixed costs.

Potential impact on profitability:

Suppliers may need to adjust their pricing to cover the increased costs associated with smaller orders, says Netstock.

Increased administrative costs:

Smaller orders can mean more frequent shipping and billing, adding to the supplier's administrative workload.

In summary, while a low MOQ can be attractive to buyers, suppliers must carefully consider the potential impact on their operations and profitability when setting their MOQs.