Managing MOQs: A Strategy Guide for New Jewelry Retailers

Minimum Order Quantities (MOQs) are standard practice in wholesale manufacturing. While they can be a hurdle for new or small retailers, they are necessary for the manufacturer to cover the fixed costs of setting up production. The key to success is developing a smart strategy for navigating them. Strategy 1: The Product Tier Approach Instead…

Minimum Order Quantities (MOQs) are standard practice in wholesale manufacturing. While they can be a hurdle for new or small retailers, they are necessary for the manufacturer to cover the fixed costs of setting up production. The key to success is developing a smart strategy for navigating them.

Strategy 1: The Product Tier Approach

Instead of meeting the MOQ for every single SKU, categorize your products by risk and demand:

  • Tier 1 (Core Items): High-demand, low-risk items (e.g., simple silver studs, best-selling necklaces). Meet the full MOQ for these to benefit from the lowest unit cost.
  • Tier 2 (Trend/Test Items): Mid-risk, seasonal pieces. Negotiate a lower MOQ or source these through the ODM catalog, where MOQs are naturally lower than OEM.

Strategy 2: Focus on Catalog Items First

Manufacturers generally impose stricter MOQs on custom (OEM) orders because they must create brand-new molds exclusively for your product. For their existing catalog (ODM), the molds are already made and costs are amortized, allowing them to offer much more accommodating MOQs.

JewelryODM, a specialized 925 silver manufacturer and wholesaler, helps small retailers and independent designers tackle this challenge. By offering an extensive selection of pre-designed, high-quality silver pieces through their ODM service, they provide the opportunity to access professional, mass-produced inventory at lower MOQs, which is crucial for new brands looking to lower inventory risk and quickly expand their product offerings before committing to large-scale custom production.

Strategy 3: The Combined Order Tactic

If you need multiple variations of the same base product (e.g., the same ring design in four sizes), try to negotiate with your supplier to have the MOQ apply to the total order quantity rather than per variation. This is a common and fair compromise that benefits both parties.