How to Negotiate Minimum Order Quantity MOQ With Chinese Suppliers, Get A Lower MOQ


what’s up guys welcome to sourcing
warriors channel when it comes down to place the first purchase order with the
Chinese supplier especially with Alibaba suppliers the biggest challenge many
Amazon sellers face is to meet the Chinese suppliers requirement for a
minimum order quantity aka I’m OQ because there’s so many people having
issues with moq in sourcing warriors Facebook group we actually had a fun
contest to give moq a different name some people call it my order quantity
some people call it maximum order quantity I thought that was pretty cool
instead of your minimum order quantity how about my maximum order quantity if
you get some cool names for ammo queue please comment below I think it will be
fun to share with everyone so how we can convince the supplier to change their mo
Q to our desired quantity in this video I’m gonna share with you some awesome
tips if you like the contents please don’t forget to Like and subscribe
sourcing warrior’s Channel let’s get started first guys let’s answer two questions
question number one is the mo Q quantity rail and the answer is yes and no some
of the mo Q quantity is completely made-up it’s a subjective number your
supplier asked you to follow in your place of first purchase order some of
the mo Q’s are real because in order for the factory to produce the product not
only they have to buy a minimum quantity of a raw material but they also need to
set the Machine up sometimes the set-up time is very long and it’s very
expensive so if you’re customizing a product they may have to buy an unique
component just to run your order and therefore they need you to buy a minimum
order quantity assume your suppliers mo Q is real now the question number two is
why you as the buyer wanted to buy a quantity less than your suppliers mo q
your primary reason to buy a smaller quantity should be using a smaller
quantity to validate the suppliers production quality if your reason is I
am not sure if this product is going to sell or I don’t have a lot of money
right now well these are valid reasons but if you’re not sure if this product
is going to sell please go back and continue to validate the market research
and make sure that you feel confident to move forward and if you don’t have a lot
of money which I understand but keep in mind after this small quantity PI you
are going to need more money in order to continue to buy more down the road so
regardless of your reasons please don’t ever and never and ever to use the
reason I’m not sure if this product is going to
CEL or i don’t have a lot of money don’t let your supplier sense your weakness
always negotiate from a position of a strength and confidence now you’re
confident going into the negotiation when to negotiate then say you got
quotes you got five suppliers quotes they all have a different price and
different different mo cues it is so tempting to start negotiating right away
but wait please don’t waste time because you don’t even know if their samples are
going to work out yet but in this process now you can plant a
seed you can say something like this just for you now our first purchase
order quantity may be lower or higher than your moq it depends on your product
sample quality after you get the samples you’ve evaluated the samples and you’re
serious about getting into customization stage redesigning the product
customizing the logo different variations and different colors maybe
customize the packaging now you can put your cards on table and start to
negotiate instead of me continue talking let me hop onto my computer show you
some scenarios and show you some negotiation techniques okay guys let’s
say your supplier mlq is 1000 and your desired buying quantity is 300 let’s go
into the negotiations with the suppliers going to be fine
negotiation walked one remember I said previously if your reason’s is I’m not
sure if this product is going to sell or I don’t have a lot of money to start
don’t use those reasons if you’re customizing your product you can say
something like this DeMuth the improvements and customizations were
making we think it’s critical we get the first production run done right for the
first order we have a decided to order 300 pieces to validate your company’s
production quality now give her some space
civic reasons number one we need to make sure XYZ key specs are done right what
are the key specs you should know if you’re customizing your product if you
don’t know go on to Amazon find an item that is close to what you are going to
make and read the negative reviews that should give you some warning signs some
warning signs for your product so use those as a key spec for your supplier to
validate and number two we need to test packaging durability to make sure the
design is sufficient to sustain the potential shipping damage which is true
you do need to test those and number three the small order will also help us
gather market feedback so the next large order next large water is going to done
perfectly those are very valid reasons and those are very fair reasons if your
supplier agree by now that is good for you if you get the answer like this
sorry it cannot make three hundred we will
lose money that is fine they said they will lose money now you’ll go into
negotiation wrong – I’m wrong – they said they are going to lose money what
about you you understand that understand we certainly don’t want you to lose
money especially for the wrong long run that is true because they’re your
business partner if they lose money they cannot support you and specifically not
only they lose money you actually lose more money you’re in this together so
you can see something like this – order a small quantity like this our company
will lose a lot more money because we’re going to pay a lot more on shipping as
you know the air freight alone is going to cost us XYZ dollar that is why we
only want to do this one time just to make sure everything is done right
so you basically put yourself on an equal footing with them they said they
will lose money by running your smaller quantity pie and you tell them not only
they lose money you – you lose more money and you’re in this together as a
partner so if your supplier understand they may give you a smaller
moq right now but if they continue to say something like this I understand but
my boss said we cannot produce at 300 oh now he where she is poling the boss cart
you have to go into the negotiation wrong three so if you’re going into the
negotiation wrong three you can start by being a little bit more playful because
even though the negotiation is very serious you can still build rapport with
the representative from your supplier set because start by saying something
like this your boss still says no should I talk to
your boss directly smelly face and now you can show her
your credibility of selling the product you can say something like this we have
successfully sold many products your company seems to be the most difficult
to work with on moq we are a serious buyer for any
new product launch we have to spend a lot of marketing dollars to promote it
for example half of your 300 units will be given away free now notice this I
said half of your 300 units I’m now saying half of my 300 units or our 300
units and this is like making a commitment for her and secondly we will
spend some money on local photography and packaging which is true and the
third after receiving your first 300 units we’re going to have to spend a lot
more money on advertisement now you begin to be a little bit more place
playful again this beautiful or handsome we plan to sell a lot of your products
you are going to make a lot of money for your boss so this is the key point guys
before this supplier walk away say something like this okay I will talk to
my boss one more time she’s walking away where he’s walking away you got to put
your foot down by saying something like this thank you I hope you don’t lose
your business because of your mo you right now we’re comparing two
suppliers your company is one of them we would love to work with you but we need
to you need to let me know by tomorrow if 300 piece order is okay if not we
won’t waste more time on this basically this is what you’re showing you are
giving her a deadline you are signaling her your willingness to walk away this
is quite powerful guys if you show this 80% of the time your supplier should be
able to give you their compromise to your lower quantity I in this case it’s
300 pieces instead of a thousand however if you’re really facing a challenge you
get this on the wrong 4 and your supplier is saying something like this
sorry my boss still says no because now you
have to really listen listen carefully of their because because that is their
to know their true reason of the reason they cannot work with you to lower their
mo Q if you listen carefully you will be able to score on the final round let’s
go into the final round in the final round I’m gonna share with you five
negotiation tips to really take a home number one if there because is there
setup fee for example they say oh our setup fee is very high how much 200 300
how about I share a little bit with you be flexible working with them understand
they do have a setup fee therefore you’re willing to share with them
because you’re a partner with them and number two is that because there they
have to buy a minimum quantity of a unique component for your customized
product if that is to ask them can you buy smaller quantity for that unique
component and pay a little bit more if you have to so I don’t have to buy the
minimum quantity for the entire product so ask them and
number three is if they really cannot lower the mo hue they said they will
lose money how about offer a slightly high slight
higher price for example if their mo Q price for 1000 piece is five dollars you
can offer maybe I will pay you five thirty five forty five dollar 30 cents
five dollar forty cents for a three hundred quantity by asked them and
number four instead of buying three hundred how about I offered to buy five
hundred pieces still less than your a thousand but I’m trying to compromise
and make it work and number five is you can draft a purchase order and send it
over to them and show your commitment and show that you are serious of working
with them if they still say no you know they can’t but most likely by now you
should be able to store alright guys after you try all these
negotiation techniques I’m pretty sure you’re getting a good chance of getting
what you wanted even if you make a little bit compromise during the
negotiation you know now a lot about your suppliers cost structure their
decision maker and also their negotiation style and the most important
all is that they know that you are a serious buyer you’re a professional
buyer they cannot run you over and take advantage of you I hope this helps guys
if you liked it please remember to Like subscribe and share the content have a
brilliant day I’ll see you soon you

100 thoughts on “How to Negotiate Minimum Order Quantity MOQ With Chinese Suppliers, Get A Lower MOQ

  1. I dont get it. Why half of the 300 units will be given away free? For what reason? Buy one get one free? I dont think it is a good response as u should include this kind of promotion while u r working with the cost and profit of the product.

  2. I feel like I'm getting ripped off. 1st sample shipping cost 25 dhl, one month later 2nd package costs 35$ with fedex. They refuse to ship via EMS which is always cheaper and claim it's more expensive. Help! Am I getting ripped off?

  3. Hi yuping, it's my first time on your page and I love your content already, super helpful for newbie like me 🙈

    Pls can you do a video on sourcing and buying from AliExpress for retailers.
    Looking forward to it, thank you 😘😘

  4. hello, should I order a sample and pay $80 for 1 unit and $100 for air freight? or order 300 units straight up?

  5. I had a problem with one particular company . They ignored me my request and ignored me in general. So I simply wrote an e mail saying so I am to understand u do not wish to do business with my company . After that I got what I got a very fast reply asking how many units I needed . But I decided to let them know that I was going with a different supplier because they basically ignored me for 3 months. I wanted very much to partner with them but I decided to notify them that they had been black listed and I would not do business with them or contact them ever again. There are a lot of good suppliers and a lot of very rude ones as well.

  6. i just found this channel by accident. Im a newbie and really learning a lot on your videos. Thank you so much for this. subbed and binge watching your videos now

  7. It's very good that you show live example. That's how people should explain things, not just talk about something. Thanks!

  8. thank you for the info. that is always i told to suppliers in alibaba telling them i dont have enough money to buy their minimu moq. it works for me i bought a product lower than their moq. thanks for the tips again it surely a weakness. new subscriber.

  9. i thank you for all you teaching, because of you i dare to try but right now i'm at dilemma could you give me some input what to do, i try to import from china supplier and we are still ad sample sending stage. The problem is the items that i want for sample cost around $460 (for me that amount is big) and they want me to wire transfer it. I want to pay using paypal but i'm afraid to offended them. Please help me.

  10. I liked this video as soon I was that elegant and beautiful smile. The best way to talk with an audience 👍 now back to the video and keep it up 🙌

  11. Hello , I have an Alibaba product is it possible to dropship on Shopify I’m currently trying to convince my supplier that with enough sales ill switch to wholesales as they said that’s the only thing they offer

  12. This is superb. I've seen a lot of similar videos from gurus and none share what you do. You precise, concise, clear and actually give direct valuable advise and steps. Please keep it up, you are a breath of fresh air and professional to industry. You will grow big if you keep giving these valuable information.

  13. I like the way you present things, excellent simple easy to understand and I like your sound background. You mentioned validate market research, how do I do that? Thanks

  14. Do suppliers ever apply a premium on their MOQs, ie to compensate for the small size when they have what you call a 'real MOQ'? If so, what is acceptable please?

  15. Suppliers actually send samples with substandard qualities? Wouldn't that defeat the purpose of sending samples since you would conclude that the product is of a low quality and not worth buying again?

  16. A representative pulled the boss card on me before twice .so I offered to buy 400 units instead of 300,, they stood firm and refused. so I told them sorry I wasted your time I will look for another supplier . They pulled the boss card a forth time but I think by showing them I was going to walk away it showed them I was serious and they gave in. I hate to negotiate I always have ,, but most the time the representatives are very helpful . I love your channel thanks for giving info on things that can be very confusing at times .

  17. Absolutely brilliant the most in-depth and detailed negotiation strategy. Straight to the point and precise examples of how to win over the supplier.

  18. I’m new to Amazon FBA and currently incorporating my company in Hong Kong. I have a question. How does the seller pay for the tariffs? Does the seller pay the tariffs together when buying from the supplier?

  19. my wife ordered products from china on 1688 website. some of the products are under quality compared to what was on the picture. i really appreciate the emergence of the video as it is clear, concise and expository. I now have an idea on how to search for quality products.
    QUESTION: how do one reconcile negotiated price between my agent and the supplier?

  20. Thanks. Good job.
    I have a question: Do you speak Mandarin (Chinese)? Is there anyone or business that can translate so I can communicate clearly with suppliers? They don't always understand what I'm saying..

  21. Another great and unique video, this alone can saves a lot of money and efforts, thank you so much for providing high quality content, you are amazing 🙂

  22. I think Yuping has better negotiation skills than certain individuals who have their names on big fat books on the subject.

  23. My regards to you Mrs. Yuping for your clear explanation. And., of all …..a simple trick and tricky….he he

  24. I’m a foster and I want to start selling on amazon but I don’t know how and scared to death because I don’t have much money. As a foster mommy I want to ask you to foster me ; help me with steps. I feel like I can’t give my foster babies my best yet because of money. Pls help me?

  25. Hello! currently I am talking to a manufactuerer. I would like to redesign the product slightly. Do i first get the MOQ, and Price per Unit, then Sample then I talk about costumization? is that how the process goes? or do I first talk about my redesign, design it and then get the sample?

  26. I'm in the middle of this right now and since finding your channel now I'm.wuesrioning if they are even a direct supplier as the are "manufacturing AND …:

  27. hi, can you make a video on how to makes sure that I don't send them the money and they scam me like how can I find a trusted way to make the purchase?
    thanks a lot and great video

  28. As always your videos are very valuable, very informative and straight to the point. unlike other videos. thank you so much.

  29. Hi, and thanks for being so detailed. I am wondering your thoughts on sample products and if your negotiations factored samples in and if so do you start that process after you get the samples? And how would you go about asking for samples and what not to say? Thanks

  30. If someone tried to motivate me by saying "You are going to make alot of money for your boss" I would just walk out of that negotation, but that's just me.

  31. I'm struggling to find just one supplier who can send me sportswear samples according to my own design and logos! I mean come on Alibaba, you can do better!

  32. I have been researching ecomm for a few months now. I've watched several of the "guru's"…that in the end…want you to buy their "course" for $1500 and STILL…DON'T EXPLAIN … WHO, WHAT, WHY & HOW!!

  33. Hello everyone , how are you. I'm Mahbub from Bangladesh. I'm a garment manufacturer and exporter. there is all kind of garment product here. specially denim/twill pant produce for men's, ladies and kids from my mini garment factory. anybody if you want to import garment from Bangladesh i hope i can do it. please contact with my email or mobile (01719439979).

  34. why should i do this crap? what suppliers want? to trust them because of what?? im a customer for them or a dick sucker?

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