MOQ Reduction solution Details | OnlineComponents.com

MOQ Reduction solution

Say goodbye to MOQ challenges with our innovative MOQ Reduction Program. We've crafted a unique solution to tackle the hurdle of meeting Minimum Order Quantity (MOQ) requirements. Our program involves purchasing the supplier's MOQ on behalf of the buyer, allowing us to align with lower MOQs and fulfill orders seamlessly. Experience the flexibility and convenience of our MOQ Reduction Solution, tailored to meet your specific needs.

MOQ FAQ

What is Minimum Order Quantity (MOQ)?

A Minimum Order Quantity (MOQ) is the minimum quantity of a given part that a buyer must purchase to be able to place an order with a supplier.

Why do Minimum Order Quantities (MOQs) exist?

When a manufacturer switches from manufacturing one part to another, the transition takes time and incurs costs. For large manufacturing runs, the cost is not as significant because it gets distributed over a larger quantity of product. But, for lower quantities, the cost is more significant as each unit of product represents a larger chunk of the additional manufacturing cost. In this case, manufacturers either need to drastically increase the price or spread the cost over a larger quantity.
MOQs represent the latter case, spreading the cost over a larger quantity by ensuring that buyers purchase the product in large increments. Manufacturers set the MOQ in advance by calculating the quantity at which the cost is adequately distributed, making the manufacturing run worthwhile. Most distributors pass along this same supplier MOQ to buyers.

How do Minimum Order Quantities (MOQs) affect me?

High Minimum Order Quantities (MOQs) make many parts inaccessible to buyers. Often, a buyer simply doesn’t need very much of a given part, and buying the MOQ would result in excess product and excess expense. At the same time, the need for an MOQ is a reasonable requirement for suppliers to maintain profitability and product quality. Without a third party like OnlineComponents.com, buyers and suppliers are at an impasse.

How can We help with Minimum Order Quantities (MOQs)?

OnlineComponents.com offers an MOQ Reduction Program, which reduces the MOQ for any part to 25% of the supplier’s MOQ. For example, if the supplier’s MOQ is 5000 units, your MOQ when purchasing from uswould be 1250 units.
The way this works is quite simple. If you order the part at our special MOQ, we will purchase the amount of the supplier MOQ and ship you the portion that you’ve ordered. Then, we stock the remaining portion of the order. The MOQ Reduction Program applies to every franchised part we distribute, and it’s automatic—no action is needed to activate the lower MOQ.
This program is unique to OnlineComponents.com, no other distributor offers a similar solution for buyers. We pride ourselves on making high-MOQ parts more accessible with this custom offering.

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