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Choosing the right packaging for your cosmetic, skincare, or personal care product is vital. Not only must it effectively safeguard the product's contents, it must also be durable, safe, functional, and appealing in the eyes of potential customers. Whether it's on the shelf of a retail store or en route to being delivered to a home, one of the first direct experiences a customer has with the product is its inner or outer packaging; for this reason, ensuring a positive first impression of this interaction is a wise business move that promotes brand loyalty and repeat customers.
In this in-depth guide, we cover the main factors that beauty brands or small business owners need to keep in mind in order to achieve successful cosmetic packaging. This includes: choosing the right cosmetic container, understanding the different types of packaging material available on the market, health and safety issues, environmental considerations, and finally, shipping and logistics.
Deciding on the kind of packaging that is most suitable for your own cosmetic, skin care, or personal care product depends on several factors:
What kind of packaging material do I want?
Cosmetics may be packed in glass, plastic, metal, paper, shrink wrap, ribbons, and many other creative ways. Each of these carry its own unique features, advantages, and disadvantages, based on the context and specific purpose you may have in mind. A basic requirement here is that the packaging material must be suitable for the type of product you wish to package and not degrade its chemical formulation. For instance, pure essential oils or essential oil blends will typically need a glass dropper bottle, while wrapping paper can be ideal for soaps. You may also have to consider the varying temperatures and shipping conditions that your product may go through; this will be discussed in more detail in later sections.
What are the visual or stylistic factors that I want to incorporate?
As cosmetic and personal care products are designed to beautify or support personal grooming and health, it goes without saying that its packaging must also be attractive. The shape, size, color, labels, and other visual elements should all come cohesively together in order to entice customers. Common cosmetic containers can come in the form of jars or canisters, pet plastic jars wholesale (boston round bottles, bullet-style bottles, rectangular-shaped bottles, spray bottles), airless dispensers, roll-ons, and more. Finishes of containers can vary from clear, frosted, tinted, to completely opaque. NDA offers a full range of cosmetic packaging solutions to suit your style and preferences.
What will the end experience be like for my customers?
The functional experience provided by a product's packaging is as important as its visuals. Thicker formulations, for example, will need to be packaged in a jar instead of a lotion pump bottle for easy dispensing. You may also consider the long-term use of your product. For instance: how easy will it be for a customer to dispense the last bits of your product? Will the printing fade or label disintegrate over time? How will the packaging behave if the product is dropped or mishandled? The solutions to these questions can require some careful planning and testing, and can vary from product to product. For products containing essential oils and bath and shower products, for example, it is recommended that your labels are laminated and/or made of vinyl material to prevent smudging and water deterioration. Providing a seamless user experience can sometimes also be a balancing act; glass, for example, can offer a luxury look but can also break through careless usage. Ordering and testing out a sample is an essential step for any beauty brand. It is also recommended to purchase your container plastic bottle caps or bottle tops at the same time and from the same manufacturer to prevent any potential mismatches.
Innovatively thought-out user experience can easily help you set your brand apart from the competition. Airless dispensers, for example, can offer a particularly seamless dispensing experience due to their unique vacuum pumping features. This can not only mean the customer can easily access and use up remaining bits of product, but the formulation can also last longer due to the decreased exposure to oxygen.
What message will my packaging carry about my brand?
Successful cosmetic packaging ultimately translates into successful marketing and sales. Keep in mind that product packaging can make a powerful brand statement that is also tangible and interactive. If your brand emphasizes sustainability, for example, it is important to invest in eco-friendly packaging that clearly shows that commitment. If your brand is all about luxury skincare and pampering, the packaging must reflect that instead. Poor or inconsistent packaging can undermine a quality product and also hurt the brand image.
Modern cosmetic packaging materials fall into three main camps: plastic, glass, and metal.
Plastic Cosmetic Packaging
Due to its flexibility and cost-effectiveness, plastic remains a widely used material for cosmetics and personal care products. With unrivaled options, there's an endless line of plastic packaging solutions available to fit every taste, style, budget, and formulation.
Resins are a diverse group of substances that form the foundation of every plastic; they can be manipulated through various physical and thermal processes to give rise to different plastic types. These plastic varieties are denoted using numbered symbols in the shape of an arrowed triangle, called the Resin Identification Code (RIC). There are seven RICs, all of which make it easy to recognize and evaluate each plastic's properties and recycling potential.
RIC STANDS FOR PROPERTIES & USE IN COSMETICS1
PETE or PET (Polyethylene terephthalate)PET is extremely popular in cosmetics due to its resistance to damage, low weight, and flexible finishes. It can be made transparent, frosted, or opaque. It is suitable for most cosmetic formulations and allows the elegant showcasing of the color and/or consistency of beauty or skincare products. See our cosmo round bottles.
PET can be recycled once used. All of NDA&#;s PET bottles and jars are also BPA free.
2
HDPE (High-density polyethylene)HDPE plastic is strong and highly durable, and can be reused and recycled. It is suitable for most cosmetic formulations. Clear finishes like with PET are not possible with HDPE, although semi-transparent options are available.
3
PVC or V (Polyvinyl chloride)While PVC is lightweight and able to withstand varying temperatures and conditions, it cannot be easily recycled. It can also cause serious health effects due to the toxins and pollutants it can release during usage and disposal.
4
LDPE (Low-density polyethylene)LDPE is highly flexible, although less firm than HDPE and also shows decreased resistance to temperature variations. It exhibits good chemical compatibility, however, offers clearer finishes, and can be a good option for products that need to withstand squeezing or careful dispensing, such as travel-sized lotions, makeup, and pharmaceutical products or medicine.
LDPE products can be reused but are difficult to recycle.
5
PP (Polypropylene)PP is light, rigid, semi-transparent, and resistant to temperature variations. In addition to cosmetic containers, PP is commonly used to create cosmetic lids, caps, and Caska seals (round discs that seal creams into the container before the top is secured).
PP can be recycled and generally re-used.
6
PS (Polystyrene)Commonly used to make styrofoam products, PS applications in cosmetics are mainly for outer packaging purposes, such as packing fillers or protective cushioning.
PS breaks easily and is designed to be disposable. It can be difficult to recycle.
7
O (Other)This classification relates to miscellaneous resins such as Polycarbonate and Acrylate polymers. The recycling potential and properties will, therefore, vary from type to type.
It is important to note that cosmetic products containing essential oils, if packed in plastic, tend to 'panel' over time. Paneling causes the walls of the plastic container to collapse, creating an unappealing, hollow, and distorted look. To prevent this from happening, ensure that stability tests are conducted before choosing the final plastic packaging for your products. As a rule of thumb, plastic packaging with thicker walls helps prevent paneling.
Metal Cosmetic Packaging
Cosmetic containers made of metal can offer a sleek, elegant, premium look that is also sturdy, non-toxic, and durable. Aluminum is a popular choice as it is easy to handle and very lightweight, making it user-friendly at the hands of customers. For small business owners, it can also be a good budget-friendly option that carries other useful benefits as well. Unlike glass, metal is less fragile and can, therefore, endure tougher transport or storage conditions, which can be favorable for those shipping over long distances. It is also highly recyclable and can easily be melted and reused for novel purposes.
One factor you may want to keep in mind is metal's lack of transparency. Products where it may be useful for buyers to view the container's insides, whether for better sales or enhanced user experience, may be better suited for plastic or glass packaging.
Aluminum bottles are especially convenient for dry or powdered products, as well as sprays and deodorants. Aluminum canisters are ideal for scrubs, creams, candles, salves, butter, and lip or body balms. Plastic lip balm packaging can also be used for lip products.
Glass Cosmetic Packaging
Glass containers can be an excellent choice for luxury or high-end cosmetic products due to their attractive, crystalline appearance. Available in transparent, frosted, or tinted finishes, they are especially suitable for packaging perfumes and fragrances, but are also abundantly used for essential oils, candles, skincare products, personal care products, nail polish, and makeup. One big advantage of glass as a material is its recyclability; it can be continually recycled while still retaining its quality and integrity. This can make glass products even more appealing due to their sustainability. For some consumers, glass is also perceived to be safer than plastic due to concerns over BPA exposure.
Because of its chemical inertness, glass is extremely forgiving for practically any cosmetic or skincare formulation. Pure essential oils, for instance, will interact with plastic and rubber, and so are generally stored in glass bottles. Tinted glass containers, such as cobalt blue or amber, are sometimes preferred due to their added UV protection.
On the flip side, glass containers tend to be more expensive, heavy, and fragile. For obvious safety reasons, they should be avoided for bath and shower products. Their fragility should also be given special consideration during storage and shipping.
There is a great deal of trust placed by consumers on the health and safety of cosmetic products, including its inner and outer packaging. This must translate into a sense of ethical responsibility on the part of the brand owner or manufacturer so that all steps and precautions have been taken to ensure this trust is not broken. To contribute to safety, the chosen packaging vessel must not interfere with the integrity of the cosmetic formulation contained within, and must also stand the test of time as customers interact with the product throughout its lifespan. In addition to this, the vessel must be able to safeguard its contents from contaminants, moisture, dust, sunlight (if required), and other potential sources of mishandling and degradation.
It is also important to realize that safe labeling practices and safe packaging practices go hand in hand. Deceptive advertising or marketing claims, inaccurate labeling or ingredient lists, the exclusion of expiry dates or safety warnings and other useful information can all directly impact the health and safety of consumers and should be carefully considered.
The health, safety, quality, and labeling of cosmetics packaging can be subject to both local or national regulations, including those mandated by the FDA or Health Canada. Cosmetic businesses must, therefore, be vigilant to any guidelines or regulations that are applicable to wherever their products are sold. In the US, for example, manufacturers must adhere to the Federal Food, Drug, and Cosmetic Act (FD&C Act). In Canada, they must adhere to the Consumer Packaging and Labelling Act. Another useful international specification is the ISO :, which can provide a starting point for criteria that must be considered for quality cosmetic packaging.
In addition to abiding by laws and regulations, the avoidance of known toxic or harmful chemicals in packaging is also critical due to increased consumer awareness and education. Not only can certain substances have real, extended health impacts, but such cosmetic products can be perceived as much less desirable. Many consumers, for example, are concerned about Bisphenol A (BPA) exposure in plastics; BPA-free containers are therefore recommended.
The impact of cosmetic packaging on sustainability and the environment has become a hot topic for both businesses and consumers. Many brands have now realized the importance of transitioning to packaging that is not only safe and attractive, but also environmentally friendly. As consumers become increasingly more eco-conscious and demanding, brands that do not embody the spirit of 'green' or 'clean' beauty can be pushed aside in favor of those that do.
From a packaging point of view, factors to be considered here include reusability, recyclability, wastage, carbon footprint and other potential environmental implications, such as toxic build-ups or hazardous elements. Simply using less packaging wherever possible can be extremely useful. The product-to-package ratio can also be maximized to reduce unnecessary usage of packaging or shipping resources. Fortunately, minimalistic packaging that embraces rustic or natural looks are currently on-trend and can promote positive consumer perceptions of beauty brands.
Opting for materials that can be recycled, reused, or biodegradable can be preferable. Glass and aluminum containers are extremely recyclable and therefore ideal options for environmentally-friendly brands. Relative to other plastic choices, PET plastic containers are considered to be much more eco-friendly due to their recyclability and lower carbon footprint. Investing in ECOCERT verified or Fair Trade products can also be useful in strengthening an eco-friendly brand statement. Whether or not sustainability forms an important core of your company's brand identity, it is important that all cosmetic brands take proactive steps towards protecting our ecosystems, conserving natural resources, and contributing to the overall safety and integrity of the environment and human life.
The successful shipping and delivery of products rely on the packaging decisions made at the very start of the process as well as investing in the sturdy and appropriate outer packaging. If not carefully thought through, products can end up broken, damaged, scratched, or dented during transportation, leading to costly compensations and unhappy customers. The size, shape, and weight of your product can initially be considered. A small item, such as a lip balm, can be easily shipped in a bubble mailer or padded envelope, whereas larger items will require an appropriately-sized box with protective filling. Brown paper, tissue paper, packing peanuts, and bubble wrap are commonly-used fillers and protectors used in shipping which help absorb impacts from falls or rough handling.
The material of the product container, as well as the product itself, is also important to take into account. The risk for potential damage or deformations due to transport, shipping, or weather conditions should always be assessed ahead of time, and conducting a test delivery can be an effective way to foresee any complications. Glass products are extremely fragile and must be carefully enclosed in multiple layers of bubble wrap or air pillows, filled with packing peanuts, and may also need to be double boxed if particularly heavy. While aluminum containers are more resistant to breakage, they can easily dent or contort on impact if not protected.
Other products that are particularly vulnerable include liquids and oils, which may leak out during transit, as well as crushable items such as bath bombs and candles. Cream, lotion, or shampoo bottles can be enclosed with layers of waterproof wrapping along with air pillows for extra cushioning. The container lid or cap must already have been tested for leaks and spills. Products like candles and bath bombs are best packed in a hardy box and padded in a way that ensures little to no movement, accompanied by an appropriate warning label.
Lastly, be sure to consider the functional experience and attractiveness of your outer packaging as well. Few things are as exciting as unboxing a long-awaited order or purchase! The creative use of colors, ribbons, or a thoughtful note can go a long way in creating an impactful and memorable first impression.
Explore NDA's packaging solutions for beauty and personal care brands here.
Access information on the US Federal Food, Drug, and Cosmetic Act (FD&C Act) here.
Access information on Canada's Consumer Packaging and Labelling Act here.
Access ISO's (International Organization for Standardization) specification for the packaging and labeling of cosmetic products (ISO :) here.
IMPORTANT: All New Directions Aromatics (NDA) products are for external use only unless otherwise indicated. This information is not intended to diagnose, treat, cure, or prevent any disease, and it should not be used by anyone who is pregnant or under the care of a medical practitioner. Please refer to our policies for further details, and our disclaimer below.All New Directions Aromatics (NDA) products are for external use only unless otherwise indicated. This information is not intended to diagnose, treat, cure, or prevent any disease, and it should not be used by anyone who is pregnant or under the care of a medical practitioner. Please refer to our policies for further details, and our disclaimer below.
Many ecommerce businesses purchase raw materials or finished goods from manufacturers. Ideally, these brands want to purchase just enough inventory to meet demand.
The bad news? Many suppliers institute a minimum order quantity (MOQ). This means that brands must commit to buying a certain amount of stock, because it&#;s more cost-effective for manufacturers to mass-produce items.
Your brand&#;s ideal unit count or reorder quantity may not match your manufacturer&#;s MOQ. However, there are benefits to MOQs &#; and ways to make them work for you.
In this article, we&#;ll give an overview of minimum order quantity, take a look at some vital factors to consider when calculating MOQ requirements, and provide tips on how to make the most of MOQs.
Minimum order quantity is the fewest number of units a business wants to sell to a customer at one time. MOQs are instituted so that the business producing or selling the units can not only cover their costs, but also ensure some profit from the production or sale.
In general, there are two types of MOQs: supplier-set MOQs and brand-set MOQs.
Supplier MOQs are MOQs that suppliers set, and then present to the brands that are considering purchasing from them. Suppliers set these MOQs to make sure that they don&#;t lose money on a production run.
For example, say a supplier makes candles, and a nearby boutique orders 10 candles from them. The supplier must buy the raw materials and pay for the labor to make just the 10 candles, which altogether costs $500. If the supplier sells each candle for $8, they only made $80 &#; which is not nearly enough to offset the $500 production cost, or see any profit.
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However, if the boutique orders a larger amount of candles &#; say, 50 candles &#; the supplier can purchase raw materials in bulk at a much cheaper price. This lowers their production costs to just $200. By selling 50 candles at just $6 apiece, the supplier still nets $300, which is enough to cover production costs and secure some profit for their effort.
Brands can also institute MOQs for end customers, though this is far less common. For instance, a brand may have an MOQ requirement for wholesale or retail partnerships, where they require a minimum of 50 units or $500 worth of product to be purchased together.
While MOQs typically benefit suppliers, they can make it difficult for the brands to balance their inventories.
For instance, a supplier may require an ecommerce brand to purchase 100 units of a particular inventory item &#; but if the brand is still growing, it may not be able to sell through all 100 units. This could leave them with deadstock, and increase their holding costs.
For this reason, merchants working with suppliers that have MOQs will need to take extra care when forecasting demand, find storage solutions that accommodate larger quantities of inventory, or simply find a different supplier.
Even though MOQs can make inventory management more complicated, they do provide some benefits &#; for ecommerce brands and suppliers alike. Here are some of the most common upsides of MOQs.
As mentioned above, instituting MOQs enables suppliers to purchase raw materials in bulk, which is usually more cost-effective. If a supplier&#;s process is already designed for mass-production, they may not even incur much more in the way of labor costs for larger orders than smaller orders.
Some suppliers don&#;t even purchase raw materials until a customer has made their purchase. This lets suppliers avoid spending money to produce inventory that doesn&#;t get sold &#; and since materials and finished goods aren&#;t sitting on shelves until they&#;re sold, the supplier will have lower holding costs.
MOQs help ensure a profit for suppliers on every production run. Suppliers may adjust the prices of goods and MOQs over time to widen or shrink profit margins.
Many suppliers with MOQs choose to pass some of the cost-savings they see onto their customers. Purchasing goods at the supplier&#;s bulk MOQ may give a merchant the best price per unit &#; so depending on the product&#;s shelf life and the amount of demand for the product, buying at the MOQ amount may be the most economical option.
Discussing MOQs with suppliers and negotiating potential solutions or compromises can be difficult, but it is usually worth it. These conversations can strengthen the supplier-customer relationship, which is key to a brand&#;s long-term success.
There is no one right MOQ amount, as many businesses have different requirements. Of course, ecommerce brands and suppliers usually face a tradeoff: they can either set a higher MOQ at a lower price, or pay a higher price per unit for a lower MOQ. While there isn&#;t a go-to formula for calculating minimum order quantity, you can use the steps below as a starting point.
Before a supplier makes any stock, and before a merchant buys any stock, both parties need to know how much stock they plan on selling. Good demand forecasting takes product type, competition, seasonality, and other factors into account to produce an estimate for how many units a merchant or supplier will sell. This data can help inform your next purchase order.
As an ecommerce merchant, you may find that the supplier&#;s minimum order quantity isn&#;t too far off from what you plan to sell through.
For example, say your brand&#;s demand forecast for the upcoming quarter predicts that you&#;ll sell 900 stock units. If your supplier has an MOQ of 1,000 units, this difference is manageable. If the product is small (like a bracelet), 100 units may not take much more room to store &#; and it never hurts to have some safety stock in case demand spikes.
On the other hand, you may find that your supplier&#;s MOQ is much higher than your expected sales. If your supplier&#;s MOQ is 1,000 units, but your brand only expects to sell 400 units, you will need to negotiate with your supplier to find a solution.
Both suppliers and merchants seeking to establish their own MOQs will need to know their break-even point.
The break-even point is the per-unit price that results in no profit or loss for the business. Usually, suppliers and brands determine this price, and then set their MOQs above it to ensure they make a profit.
For instance, if it costs a supplier $0.40 to make a single unit of product, the break-even point would be $0.40. If an ecommerce brand spends $100 to purchase 50 units of inventory from a supplier, the breakeven point would be $2.
Some products are more expensive to store than others (due to size, duration of storage, and special warehousing requirements). It&#;s financially beneficial to ensure such items are not kept in your inventory for too long.
Your inventory holding cost is the true cost of storing all of your products and something you must consider before investing too heavily in inventory. This means that suppliers may want to wait until a purchase is made before purchasing and storing raw materials or finished goods, and merchants may want to think twice before complying with high MOQs.
Having gathered all this information, suppliers and merchants are ready to set an MOQ.
Say that your brand:
If you procure and store the 500 units of inventory you expect to sell, it costs your business $5,000. To cover this investment and secure profit, you&#;ll need to sell each unit for more than $10.
How high you set the price will impact how high your MOQ will be, and vice versa. For example, your brand could charge $12 per unit. At that price, you&#;ll need to sell at least 417 units to make a profit at all &#; any less, and you will have lost money. Setting an MOQ higher than 417 will maximize your profit.
Alternatively, your brand could charge $20 per unit. Because the price per unit is higher, you won&#;t have to sell as many units to make a profit, so your MOQ can be lower. In this specific case, you&#;d have to sell just 251 units to turn a profit, so setting an MOQ of 260 will help you make money from the sale.
MOQ terms may seem awful when you&#;re on the purchasing side, but awesome when you&#;re on the selling side. Many ecommerce businesses work with manufacturers that have minimum order quantity requirements in place, and some brands will be in the position of implementing their own MOQs through wholesale partnerships or minimum spend thresholds.
No matter where you are, here are some tips on how to make the most of MOQs.
If you&#;re getting into wholesale or retail, you can require MOQs for bulk buyers to help ensure retailers pay you a minimum amount. In exchange for a minimum spend, you may choose to offer order volume discounts, where you charge the retailer less per unit in exchange for a higher guaranteed overall spend.
Also, you can adjust the prices to help incentivize higher spend. To do this, you need to set MOQ based on volume or cost. For low-cost items, you need to set a higher MOQ. This ensures you make a profit. For higher-cost items, you can afford to set a lower MOQ. Following this strategy helps you make a profit, no matter if you sell small or large quantities.
Similarly, you can test this strategy for your direct-to-consumer orders by requiring a minimum amount of products to be sold (e.g., 3 bottles of a beverage each priced at $10 to ensure your order value is at least $30) to cover customer acquisition costs and the cost of goods sold.
You can also try this with a free shipping minimum spend threshold, where you require customers to spend a certain amount of money to qualify for free shipping.
&#;With ShipBob&#;s 2-Day Express program, we&#;ve seen a 24% increase in our average order value for qualifying orders placed on our Shopify Plus store.&#;
Noel Churchill, Owner and CEO of Rainbow OPTX
Oftentimes, brands will have more SKUs than they should, and they&#;ll be stuck paying for storage and doling out cash to fulfill MOQs for products that don&#;t sell or drive revenue.
Keeping your SKU count simple and minimal helps with inventory forecasting. The difference between 20 and 40 SKUs can be hard enough to manage, let alone managing up to 400 SKUs. It&#;s easy to overestimate the use of new colors and slight variations in products. A lot of the time for ecommerce store experiences, having more than three options is too much to think about.
Whether you have a ton of SKUs or just a few, it&#;s always important to monitor how they&#;re selling. 3PL partners like ShipBob leverage software that will track your SKU performance for you, so you can always know how quickly SKUs are selling and how much of each SKU you have left.
Ordering excess inventory incentivizes you to have a higher inventory turnover ratio, meaning there&#;s pressure to sell your inventory quicker because you invested more cash upfront.
If you&#;re already bound by a supplier MOQ and end up with surplus inventory, seek out creative strategies like running flash sales, bundling extra SKUs with other products, or including them as free gifts in orders. This will help you deplete inventory while still getting some value out of the extra inventory.
If the minimum order quantity is too high and you haven&#;t proven your business model or product-market fit yet, it&#;s best to look for a different supplier with a lower MOQ (or none at all). Otherwise, you may end up investing too much money in inventory that may not sell &#; all while paying higher warehousing costs.
If your manufacturer has a higher MOQ than you&#;d like, you can always attempt to negotiate with them. There&#;s no harm in trying! If the manufacturer doesn&#;t budge and still requires an MOQ that&#;s too high for you, consider working with a trading company or wholesale distributor, the middlemen who buy in bulk from a manufacturer and resell smaller quantities to others.
&#;ShipBob is the only 3PL that had a startup program that allows me to outsource fulfillment without worrying about monthly order minimums.&#;
Lee Nania, Founder of SubSubmarine
You&#;re allowed to get creative in your conversations with manufacturers and suppliers. Try rephrasing questions or thinking outside the box:
For example, you could ask a manufacturer if they will let you &#;mix and match&#; or order several different products to hit an MOQ, rather than only identical units. You could also ask the manufacturer if they have leftover products from other customers who have canceled orders and thus, don&#;t require them to produce anything from scratch.
It&#;s possible to start with good terms from a manufacturer, but it becomes even easier over time especially when you build a good relationship with them.
Here&#;s how it works:
We&#;re all human and want to succeed. Over everything else, remember:
ShipBob is a leading omnifulfillment platform that fulfills DTC and B2B ecommerce orders for merchants.
ShipBob&#;s software, algorithm, and analytics work together to help you make better data-driven decisions to optimize the supply chain.
ShipBob offers powerful technology with built-in inventory management software features including the ability to set reorder points for individual SKUs. ShipBob also has a free analytics tool that provides advanced data visualizations, inventory forecasting, real-time inventory counts, and more. Get answers to questions like:
&#;ShipBob&#;s analytics tool is really cool. It helps us a lot with planning inventory reorders, seeing when SKUs are going to run out, and we can even set up notifications so that we&#;re alerted when a SKU has less than a certain quantity left. There is a lot of value in their technology.&#;
Oded Harth, CEO & Co-Founder of MDacne
ShipBob has a number of fulfillment centers strategically placed across the United States (and even some abroad). We let you distribute your inventory across multiple warehouses to optimize order delivery times and shipping costs. When a customer places an order, it will be picked, packaged, and shipped from the nearest location. The reduction in shipping costs can help offset the higher spend due to MOQ requirements in some cases.
With ShipBob, online store owners can create and manage wholesale orders entirely from one central dashboard. While ShipBob primarily specializes in DTC fulfillment, its B2B fulfillment capabilities are expanding more over time.
One of the biggest barriers to starting a business is the capital required to get up and running. A minimum order quantity may prevent some businesses from working with a manufacturer altogether, but an MOQ can often be better in the long run for some brands rather than buying a smaller batch of inventory at a higher per-unit cost (especially when you factor in inflation over time, and increased freight cost associated when you&#;re reordering smaller batches of inventory more frequently).
The best MOQ will vary across businesses, and determining the right benchmark requires a lot of research, thoughtful sales planning, and data. Finding an MOQ that works for you can help you scale your business while keeping it profitable.
To learn how ShipBob can help with fulfillment, storage, and inventory management, click the button below to learn if we&#;d be a good mutual fit.
Ecommerce store owners have many questions regarding minimum order quantity requirements, and rightfully so. We&#;ve provided answers below to some common FAQs.
A minimum order is the smallest amount of items a business agrees to sell to a customer. Businesses willing to sell customers a single item at a time would have a minimum order of 1. Other businesses will only allow customers to purchase in larger quantities, and therefore have higher minimum orders.
There is no standard formula for calculating minimum order quantity. To determine the right MOQ for your business, it&#;s worth forecasting demand, doing scenario planning, calculating volume discounts, and inventory carrying costs. You can then decide the lowest quantity that works for your business.
If you are a manufacturer who needs to produce products, then enforcing MOQ terms is important to stabilize your profit margin and make it worthwhile to produce in the first place.
Ecommerce businesses that supply products typically sold in sets, such as kitchenware, should also have minimum order quotas through packaging or bundling to increase average order value, and they could also explore MOQs for wholesale partners.
In the ecommerce supply chain, MOQ is the minimum number of units of a single SKU that a business must purchase from a manufacturer or seller in one production run or purchase order.
Economic order quantity (EOQ) is an equation used to determine the ideal quantity of inventory to stock in your warehouse so that you don&#;t spend too much on storage but also don&#;t run out of products. MOQ is the amount of product a supplier or seller requires a purchaser to buy at one time. An MOQ can cause an ecommerce business to purchase more inventory than they need at one time, causing them to be nowhere near their EOQ.
If your supplier&#;s MOQ is too high for your brand, you can try to negotiate a compromise with said supplier. You may convince them to let you &#;mix and match&#;, ordering several different products to hit an MOQ (rather than only identical units), or to sell you leftover products from canceled orders rather than producing new ones from scratch.
If you and your supplier cannot come to an agreement, consider whether it is more advantageous to deal with the surplus inventory, or to find a different supplier.
Contact us to discuss your requirements of Skincare Plastic Jar. Our experienced sales team can help you identify the options that best suit your needs.