This article was written by our expert who is surveying the industry and constantly updating the business plan for a wholesale business.
Minimum order value (MOV) is the lowest dollar amount you require per wholesale order to cover costs and protect margins.
In a wholesale business, MOV aligns your pricing, logistics, and cash flow so each order contributes to profit instead of draining resources. Setting MOV with data—not guesswork—keeps your prices competitive while safeguarding unit economics.
If you want to dig deeper and learn more, you can download our business plan for a wholesale business. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our wholesale business financial forecast.
In October 2025, typical MOVs range from $250–$2,000 for consumer categories and $5,000+ for industrial or capital goods, depending on costs, freight breaks, and margin targets. Use the table below to quantify your own baseline before you iterate.
Compute a starting MOV with: MOV = (Pick/Pack/Ship per Order + Overhead Allocation per Order) / Target Gross Margin, then adjust for competitor norms and buyer purchasing power.
| Factor | How to quantify | Typical benchmark (Oct 2025) | Data source idea |
|---|---|---|---|
| Product category & industry | Map SKU unit price, velocity, and perishability | $250–$1,000 (consumer goods), $5k–$25k (industrial) | Market reports; competitor sites |
| Buyer purchasing power | Median prior order value by segment | SMB retailers: $500–$1,500; distributors: $2k–$10k | CRM order history |
| Average current order size | Trailing 90-day median order value | Set MOV ≤ 70–80% of median to avoid friction | ERP/OMS exports |
| Fixed per-order costs | Overhead ÷ monthly order count | $15–$40 per order | Accounting GL |
| Variable per-order costs | Pick/pack/labels + payment fees | $6–$18 per order + 2.5–3.2% payment | 3PL & PSP invoices |
| Freight & logistics | LTL/parcel rate cards; weight breaks | Major breakpoints at 50 lb, 150 lb, 1 pallet | Carrier contracts |
| Target gross margin | (Sales – COGS – handling)/Sales | 20–40% wholesale; 35–50% specialty | P&L targets |
| Channel fees | Marketplace/rep commissions | 8–18% marketplace; 5–12% reps | Platform terms |
| Competitor MOVs | Public pricing pages; outreach | $250–$2,000 in most consumer categories | Benchmark sheet |
| Cash terms | Working capital days outstanding | Net 30–60 established; upfront for new | A/R aging |
What wholesale products are you selling, and in which industry?
Identify the exact product category and industry because MOVs vary widely by unit value, shelf life, and demand velocity.
Consumer categories like apparel, home goods, and cosmetics often sustain MOVs between $250 and $1,000 due to lower unit price and higher SKU mix. Industrial, electronics, or equipment wholesalers typically require $5,000 or more because orders ship on pallets and have higher ticket sizes.
If you carry perishables or regulated items, MOV must also reflect compliance, spoilage risk, and insurance overhead that rise with each shipment.
Track category margins and freight breakpoints by SKU family so your MOV reflects real distribution economics, not a single blended average.
Revisit the category map quarterly to catch seasonality and new listings that alter your average basket value.
Who are your target wholesale customers, and what is their purchasing power?
Segment buyers by format and size so MOV aligns with their realistic budget and replenishment cycles.
Independent retailers may average $500–$1,500 per order, while regional distributors or corporate buyers often place $2,000–$10,000 orders given broader networks and storage capacity.
Use trailing 6–12 months of order data to set segment-specific MOVs (e.g., $600 for boutiques; $2,500 for distributors) that reduce churn without sacrificing profitability.
Collect data on cash terms (e.g., Net 30 eligibility) because stronger credit profiles can support larger MOV tiers.
Document each segment’s average GM% and reorder cadence to avoid MOVs that block healthy repeat purchasing.
What is the average order size placed by your wholesale clients today?
Measure your median order value (MOV*) over the last 90 days before you set any threshold.
If your median order is $900 and the 25th percentile is $520, an initial MOV around $500–$700 preserves accessibility while filtering loss-making micro-orders.
Keep MOV ≤ 70–80% of your median order value to minimize friction for at least 60–70% of buyers while lifting AOV slightly.
Recalculate medians monthly; if median rises, nudge MOV up by 5–10% to preserve unit economics without shocking buyers.
Use separate medians per channel (rep, marketplace, direct portal) to avoid one-size-fits-none thresholds.
What fixed and variable costs are involved in fulfilling a wholesale order?
Break costs into fixed per-order overhead and variable per-order expenses to compute a defensible baseline MOV.
Summarize the latest month’s cost stack before you pick a number; this includes overhead allocation per order plus pick/pack/labels, freight, and payment fees.
| Cost bucket | What to include (wholesale-specific) | Typical range (per order) |
|---|---|---|
| Overhead allocation | Admin payroll, rent, WMS/ERP licenses, insurance spread across monthly orders | $15–$40 |
| Pick & pack | Warehouse labor, cartons, dunnage, inserts, labels | $4–$12 |
| Payment processing | Card/ACH fees, cross-border surcharges, FX | 2.5–3.2% of order value |
| Freight (parcel/LTL) | Base rate + fuel + residential/liftgate if applicable | $18–$120 parcel; $120–$450 LTL (1 pallet) |
| Compliance/Docs | MSDS/INCI sheets, COO, export paperwork, certifications | $3–$15 |
| Returns allowance | Expected cost for damages or buyer error | 0.5–2.0% of sales |
| COGS (by basket) | Wholesale cost of goods for the SKUs shipped | Varies by category |
How do competitors in your market set their minimum order value?
Benchmark at least 8–12 competitors so your MOV fits buyer expectations.
Use public price lists and outreach to map thresholds by industry tier; most consumer-goods wholesalers publish $250–$1,000, while specialty/luxury and industrial categories show materially higher minimums.
| Industry | Observed competitor MOV (Oct 2025) | Notes for positioning |
|---|---|---|
| Apparel & accessories | $500–$1,500 | Often pairs with size runs or minimum units per SKU |
| Cosmetics & wellness | $300–$1,200 | Regulatory & batch dating add handling overhead |
| Home & kitchen | $400–$1,200 | Carton/pallet efficiency drives threshold |
| Food & beverage | $600–$2,500 | Perishability and temperature control increase costs |
| Consumer electronics | $1,000–$3,000 | Higher ASPs and tighter QA steps |
| Industrial/MRO | $5,000–$25,000 | Palletized, often project-based orders |
| Luxury goods | $3,000–$10,000+ | Controlled distribution, fewer SKUs per order |
You’ll find detailed market insights in our wholesale business plan, updated every quarter.
What gross margin do you need for wholesale orders to be profitable?
Set MOV so each order achieves your target gross margin after logistics and fees.
Most wholesale businesses target 20–40% GM; specialty niches and private label often run 35–50% to cover longer terms and higher service levels.
Use this starter: MOV = (Fixed per-order + Variable per-order excluding COGS) / Target GM%; then check that the implied basket still matches buyer behavior.
Example: if fixed+variable (ex-COGS) = $40 and target GM = 30%, your MOV baseline is $133; layer in freight and marketplace fees to avoid under-pricing.
Reconcile margin math monthly with landed-cost updates from suppliers and carriers.
What logistical constraints (shipping and warehousing) influence MOV?
- Freight breaks: set MOV to push orders above weight/zone thresholds where your $/lb drops meaningfully (e.g., 50 lb, 150 lb, full pallet).
- Cartonization: require case-pack multiples to reduce split picks and damage risk.
- Storage and handling: bulky or hazmat items need higher MOV to offset space, permits, and training.
- Service levels: 2-day delivery or cold chain adds per-order surcharges that MOV must cover.
- Export paperwork: international buyers may need higher MOV to absorb customs, insurance, and brokerage.
How does the distribution channel change your order size requirement?
Match MOV to channel economics because fees and conversion patterns vary widely.
Direct B2B portals and field reps can support higher MOVs since you avoid marketplace commissions and can consolidate shipments by route.
Marketplaces and dropship channels often need lower MOVs but higher price floors to absorb 8–18% fees; consider SKU-level minimums instead of a single cart threshold.
For cash-and-carry or showroom sales, use unit or case minimums rather than cart value to speed checkout and protect handling time.
Maintain channel-specific MOV tiers to avoid penalizing efficient routes.
What payment terms and credit conditions are standard in your segment?
Define MOV alongside terms because working capital risk rises when you extend credit.
New buyers often prepay or place a 30–50% deposit; established accounts may get Net 30–60 with early-pay discounts like 2%/10 Net 30.
| Buyer profile | Typical terms (Oct 2025) | How it influences MOV |
|---|---|---|
| New SMB retailer | Prepaid or 50% deposit, balance on ship | Lower credit → higher MOV or smaller opening order |
| Established boutique | Net 30 with 2%/10 | Stable A/R → standard MOV |
| Regional distributor | Net 45–60 | Longer DSO → higher MOV to offset capital cost |
| International buyer | LC/TT; duties and insurance prepaid | Docs/FX risk → higher MOV to absorb admin |
| Marketplace wholesale | Platform-set payout delays | Commission + delay → lower MOV but higher pricing |
| Key accounts | Custom MSAs with rebates | Rebates erode GM → MOV must be higher or protected by volume |
| Seasonal buyers | Net 30; extended dating Q4 | Seasonality risk → MOV floors to reduce small picks |
This is one of the strategies explained in our wholesale business plan.
What sales volume do you need to cover overhead while staying competitive?
Calculate a break-even run-rate and ensure your MOV supports that throughput.
Use: Required Sales Volume = Total Fixed Overhead ÷ Gross Margin %; then test whether your forecast order count at the chosen MOV gets you there by month 3–6.
If your fixed overhead is $30,000/month and target GM is 30%, you must sell $100,000/month; at an average basket of $1,000, you need ~100 orders.
If forecast orders miss that target, either raise MOV, improve GM, or cut overhead so unit economics remain viable.
Track the ratio “orders over 2× MOV” as a leading indicator of healthy adoption.
How would changing your MOV affect customer acquisition and retention?
- Lower MOV increases trial orders and market reach but may raise fulfillment cost per dollar of sales.
- Higher MOV improves pick/pack efficiency and freight utilization but can slow new account conversion.
- Tiering MOVs by segment (e.g., first order vs. reorders) balances trial with efficiency.
- Promotions like “free freight over $X” can nudge baskets without permanently lowering MOV.
- Run A/B windows (e.g., 30 days) and track conversion rate, average basket, and GM after freight.
What MOV balances profitability with market accessibility?
Pick a number that clears your cost baseline and matches buyer reality, then iterate.
A common starting point for consumer-goods wholesale in Oct 2025 is $500–$1,500; for electronics, $1,000–$3,000; for industrial/MRO, $5,000–$25,000, always validated against your own median order value and freight breaks.
Codify the rule: Set MOV at or slightly below the 25th percentile of historical orders if that still meets the margin equation; otherwise, add case-pack or SKU-level minimums to protect productivity.
Publish MOV clearly on your wholesale page and in line sheets to reduce negotiation time and protect consistency across channels.
Reassess quarterly and after carrier or supplier price changes of ±5% or more.
We cover this exact topic in the wholesale business plan.
Practical example: compute your starting MOV (worked example)
Use your latest month’s numbers to calculate a clear, defensible MOV.
Assume: overhead allocation $25/order, pick/pack $7, payment fee 2.9%, average freight $35, target GM 32%.
Baseline per-order cost (ex-COGS) = $25 + $7 + $35 = $67; baseline MOV before fees = $67 / 0.32 = $209; add payment fee gross-up: MOV_final ≈ $209 / (1 − 0.029) = $215.
Now check against competitor norms and your 25th percentile order value; if most buyers already spend $600+, set MOV at $500–$600 to improve efficiency and margin contribution.
Document the calculation in your line sheet so sales reps can explain the policy with confidence.
Channel-specific tactics to hit MOV without hurting conversion
Deploy simple tactics that raise average basket size while keeping the buying experience smooth.
Bundle case-packs, offer free freight thresholds, and show “complete the case” nudges in the cart so orders cross your breakpoints efficiently.
Use SKU-level minimums for low-price items and set tiered MOVs (e.g., $400 for first order, $700 thereafter) to balance acquisition and operations.
Publish a freight matrix by region/weight so buyers can plan pallets; this transparency reduces back-and-forth and increases trust.
Automate quotes for LTL to consolidate multi-SKU orders into fewer, larger shipments.
It’s a key part of what we outline in the wholesale business plan.
FAQs (12 key questions you must answer to set your MOV)
1) What type of wholesale products are being sold and in which industry?
State your exact category because MOV depends on unit price, velocity, and handling complexity.
Consumer goods often sustain MOVs between $250 and $1,000; electronics trend higher, and industrial goods usually exceed $5,000 due to palletization and QA.
Perishables, hazmat, or regulated goods require higher MOVs to absorb compliance and spoilage risks.
Map SKUs into families (fast/slow, bulky/compact) and set family-specific case minimums to protect efficiency.
Recalibrate after assortment changes of ±10% SKUs or after a new logistics constraint appears.
2) Who are the target wholesale customers and what is their typical purchasing power?
Segment buyers into boutiques, chains, distributors, marketplaces, and corporate procurement.
Independents tend to place $500–$1,500 orders; distributors and chains more often place $2,000–$10,000 orders.
Assign MOV tiers by segment to reduce friction while keeping orders profitable.
Use credit checks and reorder history to qualify for higher terms and higher MOV tiers.
Update segments quarterly to reflect seasonality and expansion.
3) What is the average order size currently placed by wholesale clients?
Use the trailing 90-day median and 25th percentile to anchor MOV.
Set MOV at 70–80% of median if that still meets gross-margin math.
Flag exceptions where median differs by channel and create channel-specific MOVs.
Track acceptance rate (orders above MOV ÷ total orders) as your success metric.
Adjust by ±5–10% when acceptance drops below 80% or costs swing ±5%.
4) What are the fixed and variable costs involved in fulfilling a wholesale order?
Calculate per-order overhead and per-order variable costs to produce a numeric MOV baseline.
Refresh these inputs monthly from your accounting and carrier invoices to keep the baseline current.
Apply the formula: MOV = (Fixed + Variable excluding COGS) / Target GM% and then validate against buyer behavior.
Do not ignore payment fees and packaging—they materially change the threshold at lower baskets.
Document assumptions in your pricing policy so teams stay aligned.
5) How do competitors in the same market set their minimum order value?
Benchmark at least 8–12 peers across regions and channels to avoid being an outlier.
Use public price pages, linesheets, and direct outreach; record MOV, case minimums, and free-freight thresholds.
Position your MOV just below the median if you need share, or at median+ if you lead on service levels and fill rate.
Re-benchmark after major cost shifts (fuel surcharges, carrier GRI).
Keep a simple spreadsheet that your sales team can reference live.
6) What is the gross margin required to make wholesale orders profitable?
Target a GM that covers COGS, overhead allocation, logistics, and price support.
Common wholesale GM ranges 20–40%, while specialty/private label often needs 35–50% due to smaller volumes and more services.
Stress-test MOV at GM ±5 pts to see whether profitability survives supplier price or carrier changes.
Where GM is constrained, enforce case-pack minimums or raise MOV to protect contribution margin.
Audit GM by segment so key accounts do not silently erode profit.
7) What logistical constraints, such as shipping and warehousing, influence the minimum order value?
Align MOV with freight breakpoints, cartonization, and handling constraints.
Encourage orders that fill cases or pallets to lower $/lb and damage rates.
Use free-freight thresholds just above your pallet break to nudge orders upward.
Hazmat, cold chain, and export markets merit higher MOVs to absorb special costs.
Publish a clear logistics policy so buyers can plan efficiently.
8) How does the chosen distribution channel affect the order size requirement?
Create channel-specific MOVs to reflect fees and conversion patterns.
Direct B2B can sustain higher MOVs; marketplaces/dropship may need lower MOVs but higher price floors.
Sales reps can bundle assortments to meet higher MOVs without discounting.
For cash-and-carry, enforce unit or case minimums per SKU rather than cart value.
Reconcile channel P&L monthly to validate thresholds.
9) What payment terms and credit conditions are usually expected in this wholesale segment?
Match MOV with credit risk to protect cash flow.
New buyers: upfront/deposit; established buyers: Net 30–60 with possible 2%/10 discounts.
Longer terms increase working-capital cost; consider higher MOV or price floors to compensate.
Use credit insurance or limits for large accounts to cap exposure.
Automate A/R reminders to keep DSO within target.
10) What sales volume is needed to cover operational overhead while maintaining competitive pricing?
Set a monthly revenue target from overhead and GM, then verify MOV supports the required order count.
Example: $30k overhead, 30% GM → $100k sales needed; if basket is $800, you need 125 orders/month (~6 per business day).
If forecast conversion is low at your chosen MOV, lift AOV with bundles/free-freight while preserving the threshold.
Revisit assumptions after peak seasons or major launches.
Keep a rolling 13-week cash forecast tied to order volume.
11) How would adjusting the minimum order value impact customer acquisition and retention?
Test MOV changes in controlled windows and measure conversion, AOV, and profit per order.
Lowering MOV can widen your funnel but may dilute GM per order; raising MOV improves efficiency but risks higher cart abandonment.
Offset lower MOV with tighter case minimums or paid shipping; offset higher MOV with tiered benefits (free freight, priority picks).
Track cohort repeat rates before and after changes to catch hidden churn.
Use win-back offers for accounts affected by higher thresholds.
12) What is the minimum order value that balances profitability with market accessibility?
Start with the formula-driven baseline, then overlay buyer medians and competitor norms.
In Oct 2025, balanced consumer-goods MOVs often land between $500 and $1,500; industrial categories cluster from $5,000 upward.
Choose the lowest MOV that still meets GM and freight math for 80%+ of your orders to avoid margin leakage.
Document exceptions (key accounts, export) to keep policy firm while allowing strategic flexibility.
Review quarterly and after any input cost swing beyond ±5%.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to master wholesale unit economics?
Explore our guides on pricing, margins, and break-even so you can set a smart minimum order value and scale confidently.
Sources
- LitCommerce — Best Wholesale Products to Sell
- Wholesale Suite — B2B Customer Profile
- Wholesale In a Box — Wholesale Minimums
- ConnectPOS — Wholesale Examples
- Shopify — DTC vs Wholesale
- Statistics South Africa — Wholesale Trade Report
- Unleashed — Wholesale Food Distribution Guide
- ShipFusion — Wholesale Distribution Models
- Market Research Future — Wholesale Products Market
- ABMatic — Segmenting Customers by Purchasing Power