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What is our minimum order quantity for OEM\/ODM manufacturing ?

This question is often asked by entrepreneurs who intend to start a new product or a whole new brand, and it is quite understandable. Even a serious market study cannot predict your sales volume with the utmost accuracy. That is why we write this article about our minimum order quantity (most commonly called MOQ).


You are willing to develop a new product, and you would like to reduce the risks and test the market responsiveness with a lower quantity of goods. We are aware of it, and we will do our best to help you achieve this goal by offering you lower MOQs than the majority of cosmetics manufacturers in Asia.


For essential oils, our MOQ is 3 kilograms. For most of other products such as shampoo, shower gel, hand cream, body lotion, soap… our MOQs are only between 50 and 100 kilograms. These quantities are mainly suitable for orders in bulk or for semi-finished products. However, when it comes to OEM/ODM production, it’s not that simple, here is how it works:


As a cosmetics factory, we only produce… cosmetics. For packaging we partnered up with several manufacturers specializing in plastics, glass, or other materials to make containers of the highest quality. Our partners also have their own MOQs and most of them are much more than necessary to achieve a small order based on our own MOQ. So how can we deal with this issue?


1- Packaging with adhesive label


Particularly suitable if your order quantity is very low, if your sales estimate is uncertain, or if you do not intend to sell a product on a long-term basis. Your packaging will be a mass produced (but always high-quality) bottle/jar/tube on which we will stick your own customized label.


This allows you to order with us with a lower commitment. However, it will increase the unit cost of each product as it does not allow you to achieve economies of scale on containers. Also, label printing and pasting will add to the cost of production, and will slightly slow down the whole process. A lot of cosmetics brands still use this option for their products.


2- Fully-customized packaging


Suitable for long-term plans. The commitment to your project is higher. Your packaging will be unique, fully customized and printed with your own design if you reach the manufacturer’s MOQ (often 5000 to 10000 pieces). You will get the highest quality packaging with economies of scale and shorter manufacturing time. The unit cost of each product will be lower.


Now you wonder how to benefit from these advantages with a small order?


Let’s imagine that you plan to market Aloe Vera gel with your own brand. You want to order 50 kilograms from us (corresponding to 1000 tubes – each tube contains 50 grams of gel). You reached our MOQ for this product, good!


However, our partners’ MOQ for a fully-customized tube is 10000 pieces. We can order this quantity from one of them. We will use 1000 tubes for the first production batch and we will store the 9000 remaining ones inside our factory until you use them all. This solution will slightly increase the amount of the first invoice, but it will lower the overall cost and will make things much easier for the next productions.


For more information, do no hesitate to contact us via our contact form or one of our messaging apps.

BAINILAN

Over 15 years of experience in herbal cosmetics development and manufacturing

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