Amazon MOQ Calculator
Calculate the optimal Minimum Order Quantity for your Amazon FBA business. Balance inventory costs, storage fees, and supplier pricing to maximize profits.
MOQ Calculator
Sales Information
Cost Information
Storage Information
How MOQ is Calculated
The Economic Order Quantity (EOQ) is the optimal order quantity that minimizes total inventory costs. This calculator uses the classic EOQ formula to help you determine the best MOQ for your business.
EOQ = β[(2DS) / H]
Where:
- D = Annual demand (units)
- S = Ordering cost per order ($)
- H = Holding cost per unit per year ($)
Additional formulas used:
- Reorder Point = (Daily Sales Γ Lead Time) + Safety Stock
- Safety Stock = Monthly Sales (30 days)
Real Example: MOQ Calculation
Let's calculate EOQ for a product with these parameters:
- Monthly Sales: 300 units
- Ordering Cost: $300 per order (shipping)
- Monthly Storage Fee: $0.50 per unit
- Lead Time: 30 days
Step 1: Annual Demand = 300 Γ 12 = 3,600 units
Step 2: Annual Holding Cost = $0.50 Γ 12 = $6.00 per unit
Step 3: EOQ = β[(2 Γ 3,600 Γ $300) / $6.00] = β[2,160,000 / 6] = β360,000 = 600 units
Step 4: Safety Stock = 300 units
Step 5: Reorder Point = (10 Γ 30) + 300 = 600 units
Result: Order 600 units at a time, and reorder when inventory reaches 600 units.
Key Factors That Impact MOQ
Several variables significantly affect your optimal order quantity and should be carefully considered when making purchasing decisions:
- Sales Volume: Higher sales mean larger optimal orders. When demand is strong and consistent, ordering in larger quantities reduces per-unit costs and ensures you don't run out of stock during peak periods.
- Ordering Costs: Higher shipping costs favor larger orders. If your supplier charges significant shipping fees or minimum order fees, placing fewer but larger orders can substantially reduce overall costs.
- Storage Costs: Higher storage fees favor smaller orders. Amazon FBA storage fees can eat into profits, especially for slow-moving items. Keeping inventory levels lean helps minimize these ongoing costs.
- Lead Time: Longer lead times require more safety stock. If your supplier takes 60 days to deliver versus 15 days, you'll need significantly more safety stock to cover the gap and prevent stockouts.
What This Calculator Doesn't Include
This tool calculates EOQ based on standard assumptions. You should also consider:
- Supplier MOQ: Your supplier may require minimum order quantities
- Seasonality: Demand may fluctuate throughout the year
- Stockout Costs: Lost sales from running out of inventory
- Discounts: Volume discounts may make larger orders cheaper
Understanding MOQ for Amazon
Minimum Order Quantity (MOQ) is the minimum number of units you must order from a supplier. Finding the right MOQ balances ordering costs, storage costs, and the risk of stockouts.
Economic Order Quantity (EOQ)
EOQ is the ideal order quantity that minimizes total inventory costs, including ordering costs, holding costs, and storage costs.
FAQ
Data Sources & Policy References
Always verify with your suppliers for specific MOQ requirements and pricing.
Disclaimer: This calculator provides estimates for educational purposes. Actual inventory management should consider market fluctuations, seasonality, and supply chain risks.