A lot of people who read my blog are new to Amazon and seek small MOQs for their new Amazon business. But there’s a catch – not all suppliers will say yes.
But some of them will!
In this post, I’ll be sharing how you can increase the likelihood that Chinese suppliers will agree to your smaller than normal order requirements. This way, you can launch your Amazon business with limited funds.
Let’s jump in.
Create a story
This is my 1st recommendation, so I’m leading with it. You need to run with a story in mind. I always propose you tell the truth, but be creative.
The straight up truth is that you:
- Have limited capital and can’t afford 500 units, or;
- Have the capital but don’t want to go ‘all in’ just yet
For that reason, I would recommend that you use some of these templates that I also use.
- If you don’t want to go all-in just yet: “We’re expanding our business currently and are interested in your range. But we’re not entirely sure if our market will like the products that you produce. Would you consider a smaller order quantity?“
- If you’re starting with limited capital: “Currently we’re waiting on additional funding as our business grows. For now, we’re seeking some new test products to add to our range. Would you consider a smaller MOQ?“
- My current winner: “Our main market is the United States. Unfortunately, as you know, the additional customs duties
is now reducing our profits. For this reason, we would need a small MOQ to test this new product launch for our customers.“
Please note that in those examples, I am using normal English that you and I understand. English is my 1st language, as I’m sure it is for you.
Chinese suppliers are likely to struggle to understand everything there, as I’ve used some ‘technical’ words. Most will say yes, but not truly understand what you’re saying.
For that reason, please reword these templates into more simple English. They will still see you as a professional if you approach with English that a 10-year-old could understand, since most factories only have a basic understanding of our language.
Things to avoid
There are things that you will want to avoid. Remember – you’re afraid of being scammed by the Chinese. They are just as cautious about you too. They want to know you’re the real deal. Some of these tips below have helped me in my journey.
Don’t say you have limited money
It’s harder to build a relationship if you flat-out say you’re broke. We’re really trying to hold off on revealing the true reason why we’re wanting a small MOQ. Remember that you’re trying to bend their minimums. These factories already run on tight margins. For that reason – tread slowly and sensitively.
Avoid conflict if they say no
There are literally dozens of other factories that can make your product. What you see on Alibaba is only a small portion of factories out there. Just like the Canton Fair, not all factories exhibit. Some are already at full production capacity, whilst others only have space for smaller clients like us.
Don’t say that you’re new to importing or selling online.
Oh man, this is one of the biggest rookie errors. Talk about one way to get taken advantage of. You’ll want to use your words strategically. Use something like “I’ve worked for many years and really know what high quality is.” See – you have not lied to them. You have worked for many years (in a job) and you know what high quality is (through buying products as a consumer), so you’ll be taken as a real importer.
Avoid straight up asking for a small MOQ for Amazon FBA
Whilst the objective is to eventually ask for a small MOQs for Amazon FBA so you can get started without such a big capital outlay, you’ll need to focus on building rapport first. Visiting the Canton Fair, keeping in constant contact and ordering samples are some good ways to build that relationship first, so they trust you.
Don’t start a PO until you have the smaller MOQ documented with company stamp
This sounds a little technical, but a PO is a Purchase Order. It’s a document where have all your specifics listed for the product for them to create. It’s a reference so if they mess things up, they will be liable, especially if they have the company stamp which is also known as the company chop.
Look at the bigger picture
What you’re really doing with small MOQs is attempting to ask a factory to make a special arrangement with you. You’re someone who they haven’t heard of before, probably doesn’t have a website, no history on Alibaba and can’t prove sales data.
Can you see that the Chinese factories are now skeptical of you? The tables have certainly turned. Most factories are real and many sellers do find their products have been produced with high quality. It’s generally the foreign person not keeping up their end of the deal.
Whilst they might say no, some might say yes! Here’s how:
- Make a firm commitment that you will seek larger ongoing orders
- Engage with them on WeChat and be very responsive to their questions
- Pay for samples, even if you think they’re pricey. It shows you’re serious
- Visit the Canton Fair and speak in person with the actual supplier in booth
I’ve personally found this approach works when engaging with new factories. Even today I still aim to have small MOQs for Amazon. This helps me in my Amazon business through testing and measuring results, before investing further.
Small MOQs are just one aspect
You can certainly start your Amazon journey with a smaller MOQ order to get your feet wet. Even if you have a 6 figure amount in the bank, I’d recommend that you learn the ropes first, before investing more into your Amazon business.
But it’s just one aspect. You’ll have to find the perfect product, the right supplier, ensure there is sales velocity and more. You’re dropping a new product into the world’s largest shopping mall, with your customers being your #1 critic.
Finally, remember to play the long game. Some Amazon sellers have built large businesses through starting at the minimum MOQ or below.
It takes years to really find success and the next 5 years will pass anyway. You might as well make a start with a tester product on Amazon
