A minimum order quantity (MOQ) is the minimum amount of product that a manufacturer will produce, or a supplier will deliver. Many factors go into setting an MOQ, but the main goal is always to protect the interests of both, the buyer and the seller. For buyers, MOQs ensure that they are getting a good deal on a large enough quantity of product to meet their needs. For suppliers, MOQs help to cover the costs of production and ensure that they are making a profit on each sale. In the cosmetic industry, minimum order quantities can vary widely depending on the type of product and the manufacturer. For example, a high quality supplier of makeup might have a MOQ of 5000 lipsticks in order to make enough money to cover the cost of packaging and ingredients. The buyer gets a superior quality product and a lower price per unit at the same time.
When you are starting a new business, it is important to be mindful of the dangers of ordering small minimum quantities of cosmetics. While it may be tempting to save money by ordering smaller quantities, there are several dangers associated with doing so. Let’s take a closer look at some of those dangers.
Why low MOQs can be a Problem for your Brand
1. Low MOQ comes with poor quality
Unfortunately, all too often, when ordering small minimum quantities of cosmetics, the quality of the product is poor. This is because professional machines cannot produce such small amounts, and high quality raw ingredients for beauty products are only available in larger bulk. As a result, you may end up with a subpar product that does not meet your standards or the standards of your customers. Furthermore, as renowned cosmetic contract manufacturers are not interested in small amounts, you might end up with an inferior manufacturer and product. This can be a major issue, as customers will not be happy with a low-quality product, and it could damage your business’s reputation.
2. High price per unit
Another downside of cosmetics with very small MOQs is that they often have a high price per unit. This is because the ingredients and manufacturing process are only available in larger quantities. So, if you want a smaller quantity of cosmetics, the price will be higher to reflect that. Additionally, the costs for samples and shipment are often high, and you may not be able to get certificates from laboratory testing to approve ingredients due to government regulations. These high costs can eat into your margins and make it difficult to turn a profit. However, if you still want to start with a rather small amount at any costs, you should consider using an already existing white label solution.
3. Poor service and support
Ordering small minimum quantities of cosmetics can also lead to poor service. This is because suppliers more than likely won’t have time to focus on your account if you’re not ordering large quantities. The suppliers are more likely to help people who are ordering large quantities. As a result, you may not have someone available to answer your questions or address any concerns you have in a timely manner.
4. High costs for samples and shipment
In addition, you can expect to pay high costs for samples and shipment when you’re working with a company that has a small MOQ for cosmetics. This is because they need to recoup their costs somehow, and they will often charge more for these services than suppliers with larger MOQs. Be careful with those who want you to pay a high fee (<100$) for samples. This can be a red flag, as it may indicate that this is part of their business and is not interested in working with you. If you want to know more about red flags and what to watch out for when searching for the perfect manufacturer for your business, refer to this guideline.
5. No certificates from laboratory testing
Finally, another downside of working with a company that has a very small MOQ for cosmetics is that you might not be able to get any certificates from laboratory testing to approve ingredients due to government regulations. This can be a real problem if you’re trying to sell your products in certain markets. Buying these certifications afterwords can cost a lot of money, everything from 500$ up to 5000$ for one new product. So make sure you get everything you need from the manufacturer in the first place!
Conclusion: Why you should rethink ordering small MOQs
Overall, you should be careful with choosing cosmetics that have very low minimum order quantities. Cosmetic companies often have different MOQs for the same product. It’s important to be aware of the minimum quantity you’ll need to order to get the product you want. Sometimes, it’s worth working with a supplier who has a higher MOQ if the quality of the product and packaging are better. While it may save you money upfront, there are several dangers associated with doing so that can end up costing you more in the long run. From poor quality products to high prices and bad service, it’s simply not worth it to cut corners when starting your brand. Do your research and order from trusted sources so that you can be sure you’re getting the best possible product for your needs.
Finding a good cosmetics supplier for your brand can be difficult. It’s important to do your research and find a company you can trust. At SBLC Cosmetics, we pride ourselves on having long-term partnerships with the best manufacturers all over the world. We take care of everything for you, from sourcing to shipping. So you can focus on what’s important — making your business thrive.
