--- title: "What Is MOQ (Minimum Order Quantity)?" url: https://www.uncap.com/glossary/moq author: "Denis Dyli" published: 2026-10-11 updated: 2026-10-11 summary: "MOQ (minimum order quantity) is the smallest quantity a supplier will accept in a single order. In wholesale buying, suppliers set the minimum either as a number of units or as a total order value. MOQs help suppliers cover production and shipping costs, and earn a profit." --- # What Is MOQ (Minimum Order Quantity)? > MOQ (minimum order quantity) is the smallest quantity a supplier will accept in a single order. In wholesale buying, suppliers set the minimum either as a number of units or as a total order value. MOQs help suppliers cover production and shipping costs, and earn a profit. **MOQ (minimum order quantity)**: MOQ (minimum order quantity) is the smallest quantity a supplier will accept in a single order. In wholesale buying, suppliers set the minimum either as a number of units or as a total order value. MOQs help suppliers cover production and shipping costs, and earn a profit. ## How it works - By units. The buyer must order a certain number of items, for example at least 24 of one product. - By value. The buyer must reach a specific dollar amount on the order. To turn a value minimum into units, divide it by the price per unit: a $10,000 minimum at $100 per item is 100 units. Some suppliers add rules based on how items are made or shipped, such as buying in multiples like boxes of 12, or meeting a minimum for each color and size. Others use tiered MOQs, with a higher minimum for a first-time buyer and a low MOQ later to encourage repeat orders. An MOQ is a floor, not a step: a minimum of 24 accepts 25, while a case pack increment of 12 only accepts multiples of 12. ## Why suppliers set MOQs Shopify's guide to MOQs names five operational and financial reasons: - Production costs. Each order covers fixed costs like tooling, machine setup and changeovers, and labor time per run, which don't scale down for small orders. - Consistent volume. Large, consistent quantities help suppliers run manufacturing efficiently and manage resources. - Packing and shipping. MOQs align with case pack quantities, pallet layers and containers. - Upstream minimums. The supplier's own vendors often require minimum purchase quantities for fabric, ingredients, components or packaging. - Quality and speed. Higher, consistent volumes support uniform quality control and shorter turnaround times. A buyer who can't meet the MOQ may have to look elsewhere or pay a surcharge to buy below the minimum. ## MOQ vs EOQ MOQ is the minimum amount the supplier will let you buy. The supplier bases it on its own costs and profitability, not on your needs. EOQ (economic order quantity) is what your business should buy to be most cost-effective: an inventory formula that balances ordering costs against holding costs. The formula is EOQ = √(2DS / H), where D is annual demand in units, S is the setup cost or cost per order, and H is the holding cost per unit. With annual demand of 1,200 units, a $50 cost per order and a $3 holding cost per unit, EOQ = √(2 x 1,200 x 50 / 3) = √40,000 = 200 units. If the supplier's MOQ is 300, the smallest order it will accept is still 300. ## Example A supplier sets an MOQ of 24 per item and sells in increments of 12. - A buyer asks for 10 units: below the minimum, so the order is rejected. - A buyer asks for 30 units: above the minimum but not a multiple of 12, so the order must be 24 or 36. - A buyer orders 12 blue and 12 gray of the same style: when the minimum is set per variant, neither color reaches 24, so neither line qualifies. ## On Shopify Shopify B2B sets unit minimums natively through quantity rules in catalogs. A minimum quantity rule defines the fewest number of an item that can be purchased at one time. Minimum and maximum rules apply to product variants: Shopify's example is that customers can't combine 5 gray hats and 5 blue hats to meet a minimum of 10 hats. Quantity rules are re-validated in checkout. Quantity rules are available on the Basic, Grow, Advanced and Plus plans. A minimum order value is a separate setting: Shopify's Checkout Blocks app can set minimum and maximum order subtotals and block checkout for orders outside them, for all customers or only B2B companies. Order value limits in Checkout Blocks are available only on Shopify Plus. ## How Uncap helps MOQs, case packs and order minimums are three different rules, and our guide to [order minimums, case packs and MOQs on Shopify](/post/wholesale-order-minimums-case-packs-moq-shopify) covers which ones Shopify B2B enforces natively. For the wholesale operations Uncap builds, the rules conversation happens during catalog design, not after go-live. ## Related terms - Case pack - Tiered pricing - Purchase order - Price list - Lead time ## Sources - Setting up quantity rules and volume pricing in B2B (Shopify Help Center) - MOQ: Definition and Negotiation Tactics (Shopify) - Setting up order value limits in Checkout Blocks (Shopify Help Center) ## Frequently asked questions ### What does MOQ 500 mean? The smallest order the supplier will accept is 500: either 500 units or a $500 order, since suppliers set MOQs by units or by value. Ask which one they mean. ### What is MOQ and SKU? Some suppliers set a minimum for each color and size they make, so each [SKU](/glossary/sku) has to meet its own MOQ. On Shopify, each variant must have its own unique SKU, and B2B minimum quantity rules apply to product variants, so each variant has to meet its own minimum. ### What is a good MOQ? It depends on the buyer. Low MOQs suit businesses with limited storage or cash flow, or those testing new products. High MOQs make sense with reliable demand and room for the upfront and storage costs, in exchange for a lower per-unit price.