A minimum order quantity (MOQ) may be required when ordering from a particular manufacturer or wholesaler. This means that manufacturers, suppliers, and wholesalers may reject certain customers if they cannot or will not meet the minimum order quantity.
It may seem counterintuitive that rejecting a customer could increase profits, but how minimum order quantity works and some suppliers are particularly low margin or highly profitable orders. It is important to understand what to use for custom orders. With careful management, the minimum order quantity can increase your profit.
