As an Amazon seller, you will come across different terms such as QTY, MOQ, and other abbreviations that can sometimes be confusing. If you are a new seller, you’ve probably seen the word QTY several times and wondered what does QTY mean on Amazon?
In this blog post, I will explain what QTY means, and other things related to it including MOQ.
Read until the end to learn some tips on how to make the most of MOQ.
What Does QTY Mean on Amazon
QTY is the abbreviation of quantity. In Amazon, it refers to the number of items or products that are currently available in your inventory or stock. When an item has a quantity of one or more, your item will become active on Amazon.
What is Minimum Order Quantity (MOQ)
The term MOQ refers to the Minimum Order Quantity. Inventory is often a business’s most valuable asset in the realm of e-commerce. You want to have enough to meet demand, but not too much that you won’t be able to sell it all.
Buying goods or raw materials isn’t always straightforward. You’ll need to discover a manufacturer that not only sells the correct supplies at the proper pricing, but also one that lets you order the most units possible.
Many manufacturers impose a minimum order quantity (MOQ) to entice customers to buy in bulk so they can be cost-effective and profitable in production.
However, one of the delights of having an internet business is that your optimum unit count or reorder number may not match your manufacturer’s MOQ.
Of course, the suppliers you work with, as well as your production runs, may change over time. Not only in terms of the physical product, but also in terms of cash flow, profitability, and financial health.
Because different companies have varied requirements, there is no one-size-fits-all MOQ number. Of course, having a larger MOQ or paying a higher price per unit is frequently a tradeoff.
How To Make The Most of MOQ
Look for Different Distributors or Suppliers
You can always try to haggle with your manufacturer or suppliers if their MOQ is larger than you’d like. There’s no harm in giving it a shot. If the manufacturer refuses to bend and still insists on a high MOQ, consider working with a trading business or wholesale distributor, that buy in bulk from a manufacturer and resale lesser quantities to others.
Increase the Inventory Turnover Rate
Ordering extra inventory encourages you to have a greater inventory turnover ratio, which means you’re under more pressure to sell your stock faster because you spent more money upfront. This does not imply that you should solely execute flash deals to clear excess inventory, but rather that you should look for new and innovative ways to attract and retain customers.
It’s wise to search elsewhere if the minimum order quantity is too large and you haven’t yet demonstrated your business strategy or product-market fit. Otherwise, you’ll have wasted too much money that you might not be able to recoup, not to mention the cost of warehousing.
Maintain Good Relationships
It’s possible to start with favorable terms from a manufacturer, but it gets easier with time, especially if you develop a positive relationship with them. By maintaining good relationships with your supplier, they might be more accommodating and improve their terms with you over time.
Conclusion
Quantity may seem like a common term, but knowing the importance of Minimum Order Quantity and how to make the most out of it can make or break your success as an Amazon seller. Do you have more questions regarding QTY on Amazon? Ask them in the comments below.