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Amazon Seller Dictionary

This dictionary is designed to help Amazon sellers quickly understand the most important terms used inside Amazon’s ecosystem.

Minimum Order Quantity (MOQ)

MOQ is the smallest number of units a supplier or brand requires per order to ensure production efficiency, cost control, and consistent supply.

What is MOQ?

Minimum Order Quantity defines the least number of units you must purchase in a single order. It balances manufacturing costs, packaging, and logistics, ensuring orders are economically viable for suppliers and brands.

Why MOQ matters

  • Improves production efficiency and cost predictability
  • Reduces per-unit costs through scale
  • Helps plan inventory and cash flow
  • Prevents stockouts for fast-moving SKUs
  • Aligns demand forecasting with supplier capacity

Best practices for setting MOQ

  • Base MOQ on historical demand and lead times
  • Model carrying costs vs. stockout risk
  • Negotiate tiered MOQs for new or seasonal SKUs
  • Use mixed-case or bundle MOQs to optimize cash use
  • Review MOQs quarterly as velocity and costs change
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