Dictionary/Minimum Order Value (MOV)
Minimum Order Value (MOV)
Minimum order value, or MOV, is the lowest order total in money a brand accepts from a retail partner, per order or for a first order.
What it means
Minimum order value, or MOV, is the smallest order a brand will ship, measured in money. It often has two levels: a higher opening order for new partners, and a lower value for reorders. It is related to MOQ, minimum order quantity, which is counted in units.
Why minimum order value matters for lifestyle brands
Every order costs money to pick, pack, ship and invoice. Very small orders can lose money. A MOV also signals commitment. A partner with three products listed is a listing, not a partner.
Set it too high and small shops cannot start. Set it too low and you run many unprofitable orders.
How to set a minimum order value
- Start from your cost to serve one order: handling, freight, admin
- Add the stock depth a partner needs to sell and display the range
- Consider a higher opening MOV and a lower reorder MOV
As a rough guide, many lifestyle brands ask new partners for an opening order around €10,000, varying a lot by category.
Example
A homeware brand sets an opening MOV of €5,000 and a reorder MOV of €800, with free freight above €1,500. Small concept stores can start, and reorders stay worth shipping.
