How Minimum Order Amount Effectively Increases Your Business

How Minimum Order Amount Effectively Increase Your Business

What do you think about setting a minimum order amount or minimum purchase amount? If those amounts are too low, customers will hesitate to place orders because they don’t want their purchases to become empty due to fluctuations in prices. On the other hand, setting an extremely high minimum purchase amount might discourage potential customers from purchasing your products. How should you determine the optimum balance between these two extremes?

There are several things you can do when creating a minimum order amount. For example, you can use discounts or offers. Additionally, you can choose an exclusive deal or promotion that only applies to a specific group of customers. Finally, you can offer free shipping. The key is to create something that appeals to everyone. If you are not sure where to start, check out our article on using email marketing for business growth.

How to use the minimum order amount correctly in your business? 

You presumably follow a set of market rules whether you’re a manufacturer at the beginning of a retail merchant at the conclusion. For instance, a manufacturer would often not provide their products at a lower price to consumers directly compared to their wholesale pricing. However, despite the order quantity, merchants often avoid making significant discounts because doing so reduces their profit margins. Ecommerce proprietors must handle the following as well as adhere to a comparable set of regulations:


Technology must be flexible for the future as well as ready to satisfy demand now. If you offer a pricing structure for established and emerging wholesalers and major retailers, your e-commerce shop may be an operational success.


Selling is simple since an e-commerce shop offers you the chance to digitise your company and serve as a storefront. It can help you optimise your business processes so that all of your customers—whether they are D2C customers or existing wholesale customers—can utilise it. Create a portal for all your customers, not just those who buy from you online. It could take some time for you to persuade everyone to make an online purchase, but it will be pretty beneficial for your business operations.

How can you benefit by setting an optimum minimum order amount? 

  • Setting the optimal MOA helps attract new customers and ensure repeat buyers. For example, retailers of clothing and shoes typically offer free shipping, 20%-50% off coupons, plus other incentives to entice customers to spend more.
  • MOAs can increase conversion rates and encourage impulse buys, especially for seasonal or limited edition goods. Some big names in retail are already taking advantage of this strategy, including Starbucks, Target, Macy’s, and Walmart. They’ve reportedly seen sales jump 30% after introducing MOAs.
  • An effective MOA program can improve brand loyalty among regular customers, encourage them to spread word-of-mouth advertising, and reduce customer complaints. This ultimately benefits your bottom line.
  • A well-designed MOA program can help you build a loyal following by encouraging repeat purchases. It can also help you retain existing customers by offering special promotions and rewards programs.
  • A good MOA program can help boost your company’s reputation as a trusted retailer. You’ll be able to show prospective customers how much value they’re getting when they purchase. 
  • An MOA may help suppliers maintain a more robust, reliable cash flow when product price and order quantities are correctly handled.
  • In some cases, minimum order amounts help control manufacturing costs by allowing production runs to be precisely planned to fulfil demand without going over. This can minimise the cost of materials while reducing the demand for warehousing space.
  •  Suppliers may control their profit margins by employing MOAs properly, ensuring that products are only manufactured when significant profits are behind the order.

The Bottom Line 

The minimum order price is the minimum amount of a product or service that has to be purchased before you receive an order confirmation message from the seller. There are several types of orders depending on the type of transaction (e.g. purchase, subscription). The order amount usually increases when you place multiple orders at once. Does this mean that increasing the MOA helps increase sales?