Is there any merit in forming buying groups ( a group of importers who by small quantities of goods of the same/different goods and ship them together) to combat the limitations of MOQ (Minimum Order Quantity)?


Looking for the best answer!

Dunno Sampanviking. Sure hope you're right.

Still waiting on answer from Admin to our question ....

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How about giving us a satellite forum somewhere in this good house to pull the co-op buyers together for each big order?

We'll cut a deal with you where we buy from only Gold and Trust Pass suppliers. I calculate you could sell 1,000 extra Gold and Trust p each year riding on the back of our co-op. That's worth a cool few million per year to you in return for a bit of Alibaba cyberspace.

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Memo to Admin ... the co-op idea was Rizzob's. So he cops the blame for that.

Replying to [Admin]:

Yes, it is really worthy forming buying groups since

a) they can consolidate their each of their requirements and can order to a supplier in which case the question of minimum order quantity will not arise, thereby the supplier can easily produce the reqred goods and supply. in this way the buying group is helping the supplier to meet his expenses like wastage, higher cost of manufacturing involved etc.... of a small order manufacturing programme..

b) secondly the buying group is also benefitted because they receive the goods whatever quantity they require, and at the same time, a lot of saving in the shipping, transporting costs because of the total consolidated buying.

Replying to [Admin]
yes it is
Size up the competition. If you're one of the small fry, there is one way to get on equal terms with the bigger players form a buying group.

Replying to [Admin]:Good idea. Like any other group venture a mutual agreement must be reached. Trust seems to always be the big issue when it comes to trade.

I think an agreement should be written up and signed by all members of the group. Each group member should then in their own interest deposit a copy with a (notary public) e.g justice of the peace, lawyer etc - of their choice. Once products are received the documents should be signed a second time by all acknowledging receipt.

Once the agreement spells out what each member is accountable for, what actions will be taken in given situations etc... it should make it easier to manage.


Further a bank account could be opened for the transaction with the bank being given the details re each persons deposit amount. I believe the bank can be authorized to only allow each party to retreive what they deposited. Should the total amount not be on account when the transaction is being completed by the seller, then all the buyers loose out.

Replying to [Admin]:Don't blame it all on Robbie,
He and I was talking about it before this post come to life. I think Two River have some thing to do with it too.

Lady and Gent. could we pull ourselve together and get this happen.

I'm all for it. Let see how many more we can get to joint in.

Replying to [Admin]:Not worth Boss.
1) Bcaz different buyers buy goods on different price. Second there is a secrecy of performing actions.
2) How will shipping be handled. As consignee will be 1
notify party will be 1 otherwise, & Shipping company will take it as lcl cargo for different consignees.
3) How about paying to Suppliers?
Lot of Draw backs in that and if 1 buyer and 4 buyers buying from same supplier for same country than they will also never prefer to ship goods together or make 1 group to arrange order or shipment..

Replying to [Admin]: As a suggestion - perhaps the companies wanting to purchase together could form a seperate bulk buying entity, with all the companies as partnerships and a minimum amount be paid into an account to secure a place in the bulk buying company. This would make the partnerships legal and give each company an equal stake in the outcome of the purchases etc. A contract would have to be drawn up stipulating the split of products and costs etc. The bulk buying company could perhaps add on a 2% handling fee for the admin involved to keep all the facts and figures straight. This is a difficult one as there is still an element of risk and a minimum of trust would be required of the partners. Could work, but would have to be well organised and legally binding on all the members.

There must be a merit who deals with combatting the MOQ (minimum order quantity). This system can be used if the main customer's demanded quantity is less than the MOQ. The shipper can then submit the shipment to the forwarder in order to load it fully in the container with some other goods from other shippers. Another choice is that the shipper can load the goods together with other customer's goods from the same port of destination. MOQ has been haunting most customers as they have to follow the rules and situation of the shippers. Every shipper must have the MOQ because of the efficiency of the production. In conclusion, the merit for buying groups is worth forming as it also can open the job opportunity to new empoyees.

Replying to [Admin]:yes.it enpowers the buyers in group to negotiate price reduction,.and it reduces costs generally for both buyers in group and the seller also.

Replying to [Admin]: This would allow for the smaller companies with minimal cash to enter the import market . The sea freight cost would be greatly reduced allowing the small importer to yield higer profits. The manufacture would be able to increase their output per run by offering overruns to the smaller companies. I vote yes to this question.