19/03/2025
How One U.S. Retailer Cut 70% of Inventory Costs with an MOQ 10 Strategy
Inventory management can make or break a retail business, especially in a fast-changing and competitive market. Recently, a U.S. retailer completely overhauled their approach to inventory by adopting an MOQ 10 (Minimum Order Quantity) strategy—and the results were astonishing: a 70% reduction in inventory costs.
Here’s how they did it:
1️⃣ Shift from Large Bulk Orders (MOQ 100): Previously, the retailer would place orders of at least 100 units per product, which often led to overstocking items that didn’t perform well. This tied up cash flow and drove up storage costs in the company’s shop warehouse.
2️⃣ Test with MOQ 10 for Market Validation: The company began ordering only 10 units per product when introducing new items. This allowed them to test customer preferences across various product styles, categories, and even experimental trends.
3️⃣ Leverage Data-Driven Reordering: By closely monitoring sales performance and gathering direct customer feedback, they identified products that their audience truly loved. Based on this data, they strategically placed larger orders only for high-performing items, reducing stock levels on low-demand products.
4️⃣ Decrease Storage Costs: With fewer unsold goods, the company freed up valuable warehouse space, resulting in significant cost savings.
🏆 The Results:
In just a few months, this retailer minimized overstock risks, aligned inventory with customer demand, cut 70% of storage costs, and improved cash flow—all by embracing MOQ 10 as a core strategy.
👉 Takeaway: Retailers, especially small and medium-sized businesses, can achieve significant cost savings and agility by adopting a low-MOQ strategy. Testing the market before committing to large orders can help you stay customer-focused, reduce waste, and drive profitability.
📌 Discussion: Are you using a similar strategy to manage inventory in your business? What challenges have you faced balancing buyer needs and stock costs? Let me know in the comments below!
