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Your MOQ FAQs answered…
Fullers Fulfilment has been providing high quality, multichannel, end-to-end fulfilment services to retailers from a wide range of sectors since the 1960s. We work with ecommerce SMEs in the beauty, fashion, food & drink, pet care and lifestyle industries, to name but a few.
As experts in the fulfilment industry, we get asked lots of questions. An area that many new customers want to understand better is MOQ (Minimum Order Quantity). What does MOQ mean? So, we thought we’d create a quick run through MOQ meaning and answer some of the most common FAQs on the topic.
What is MOQ?
Minimum Order Quantity (MOQ) is the smallest number of products that must be purchased, as specified by a supplier.
In a fulfilment context, it’s the minimum quantity of ecommerce orders and/or the number of items within each of those orders.
To clarify, there are two types of MOQ:
- the total number of items that need to be shipped per month
- the number of items that go into each package
At Fullers, our monthly MOQ is 150 orders. That means we only work with ecommerce retailers who receive 150 orders or more in any given month.
However, we do not insist on a MOQ for items within each individual order/package, because we want you to be able to offer your customer total purchasing freedom in what is a competitive retail space.
Why do fulfilment providers use MOQs?
It can be frustrating when your business doesn’t satisfy the order quantity criteria and you might be wondering why MOQs matter so much?
One reason is that the time/resource investment the fulfilment provider has to make in onboarding a customer must be made cost effective. That includes all the elements of account set-up, such as the team learning about your products and brand, facilitating suitable storage requirements, system integration and sourcing packaging.
We follow a rigorous onboarding process to ensure we provide only the highest standards of fulfilment for every one of the ecommerce SMEs we serve. As much as Fullers wants to support exciting ecommerce start-ups, the work involved isn’t profitable for either party if their MOQ is below 150 orders.
This 150-order threshold is based on data from decades in the fulfilment business. If you’re unsure how to calculate your MOQ, you can discuss your monthly sales and average order volume with our team when you enquire about outsourcing your fulfilment to us.
Why do some fulfilment companies have a high MOQ?
Dynamic fulfilment providers with a strong reputation, such as Fullers, will have invested in specialist storage, picking and packing equipment, the latest systems and technology, training and development of skilled staff, and a choice of bespoke packaging.
As with any business, that investment needs to generate a return. Therefore, you can expect more established and equipped fulfilment providers to have a higher MOQ and they are likely to work with larger ecommerce companies who can commit to higher order volumes.
Why do some fulfilment companies have a low MOQ?
Fulfilment companies that have joined the industry more recently may have a lower MOQ, to encourage more business. They will be keen to grow their portfolio – either generally, or in sectors where they don’t have much of a profile yet.
They may work from a single site with basic facilities, limited storage and packaging options, and a small team, so their overheads aren’t as costly. All this means they can set a lower MOQ.
How do MOQ requirements benefit my ecommerce business?
MOQ requirements dictate a specific number of sales per month. By knowing your ecommerce store will shift at least that much stock, you can plan and manage manufacturing and inventory in a more strategic way.
If you choose a fulfilment supplier with a higher MOQ, you can usually expect more extensive capabilities and the choice of a wider suite of additional services. For example, personalisation for your customers such as handwritten notes in their order, access to shipping visibility platforms and easy returns management. Fullers offers all these services, and others.
A fulfilment provider with a low MOQ could mean you’re able to outsource your fulfilment earlier on in the lifecycle of your business, freeing up time and space spent fulfilling orders yourself. If you have a niche but popular product, some fulfilment providers may reduce their MOQ in order to have your exclusive products in their brand portfolio.
How can I increase my order quantity to meet a higher MOQ?
Almost hitting MOQ but just need a slight boost to make it happen? Consider introducing the subscription box model to your ecommerce offering. Subscriptions facilitate recurring revenue, support customer retention, and introduce link sales opportunities and collaboration potential - helping your business scale up progressively. Fullers offers a subscription box fulfilment service.
If your fulfilment provider insists on an MOQ within each order, you might also like to offer free shipping for orders over a set value (e.g. £50) so that shoppers are compelled to order more than one item at a time from your store.
Just a reminder, Fullers Fulfilment doesn’t insist on an MOQ for items within one order but we do have an MOQ of 150 orders per month for the businesses we work with.
Are you an ecommerce retailer generating 150 orders per month, or more? Fullers can handle all your fulfilment needs, including warehousing at our sites in Slough, Bordon and Leamington Spa, systems integrations, picking, bespoke packaging, personalisation, cost-effective courier services, and returns if required. Get real-time visibility of stock levels and shipment progress, as well as the support of our experienced team of fulfilment experts. Contact us today to find out more.