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How to you define the MOQ on OEM Private Label Branding?

2019-06-18

The Minimum Order Quantity (MOQ) requirement specifies in OEM Private Label Branding is the lowest quantity of a certain product that is required by the manufacturer. If the factory cannot reach the MOQ requirement, then it is not willing to enter into production. Most manufacturers tend to have fairly high quantity requirements as they tend to operate on razor-thin profit margins. Low-profit margins require the supplier to produce a large number of products in order to break even. Another reason is that majority of the manufacturer tend to keep a minimum stock level of materials and components due to the huge size inventory in their programme. At the same time to meet the different types of packing formats there is also an MOQ from the packing box factories. All in all, we will try to keep a lower MOQ to assist the customers in their initial stage of their own in house brand promotion.


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