In the world of eCommerce, inventory is typically a store’s most valuable asset. You want to have enough so that you can meet demand, but not so much that you can’t sell all of it. Whether you’re a manufacturer, wholesaler, supplier, or retailer, you can apply various store restrictions for your customers to increase profit margin.
As a WooCommerce store owner, you may be tempted to say “yes” to every customer who wants to purchase from you. Just imagine, even the suppliers would be very happy to provide you with the exact product quantity your company requires.
I mean more orders, more sales, more profit, right?
Well, Not exactly!
The scenario of placing orders with vendors is way more complicated, and not all sales are beneficial to your business. However, in the digital retail world, Minimum and maximum quantity restrictions help store owners to increase profit margins. Let’s see how Min Max Quantities for WooCommerce help.
What is Minimum Order Quantity & Maximum Order Quantity?
In the WooCommerce business, bulk order is important. The higher your ability to manage your customers’ orders, the greater your profit.
Applying minimum and maximum order quantity restrictions Min Max Quantities for WooCommerce has several outcomes. Before attempting to implement these restrictions, let’s know the output of using minimum and maximum order quantity output they will bring to your WooCommerce business.
1. WooCommerce Minimum Order Quantity
The minimum order quantity is the least amount of a product that a vendor will allow a customer to purchase. Selling a single quantity of an individual product to a single customer may be profitable, but a minimum order quantity is required to meet the target profit margin.
It’s most commonly used by a manufacturer or supplier in the context of a production run in WooCommerce, though a vendor can set a minimum order quantity for different types of orders. By securing a minimum bulk order, minimum order quantity helps to accelerate profit margins in WooCommerce businesses.
2. WooCommerce Maximum Order Quantity
Maximum order quantity means setting up the upper limit of products your customers can buy. Setting maximum order quantity restrictions allows vendors to reach more customers with their available products.
Store owners must cover payment processing and execution costs such as labor, shipping, administrative, and other overhead costs when running a WooCommerce business. If the maximum quantity is exceeded, the costs of overstocking products will rise.
Additionally, it increases the possibility that the products will lose value because they may deteriorate or become outdated.
So, a WooCommerce store owner should understand when to use minimum and maximum order quantities for WooCommerce business.
Now the question is how to increase your profit margin and how you can implement product and order restriction rules in your WooCommerce store. Don’t worry, WooCommerce Min Max Quantities can take care of your headache as it has all the advanced features your WooCommerce business needs.
The benefit of Minimum Order Quantity
Vendors can use Minimum Order Quantity to get rid of more inventory quickly and increase sales volume. Applying minimum order quantity restrictions to your WooCommerce store is critical. Here’s why:
- Inventory Management Made Easier.
- Reduce Your Inventory Costs.
- Increase Profit Margin.
1. Inventory Management Made Easier
Minimum Order Quantity guides a vendor about the minimum quantity of any product that a company requires.
Choosing the appropriate minimum order quantity is crucial for efficiently managing your inventory. Here are some factors to consider when determining the appropriate minimum order quantity.
- Estimate the product’s demand.
- Determine the inventory cost.
- Increase the minimum order quantity for low-cost products.
- Decrease the minimum order quantity for expensive products.
2. Reduce Your Inventory Costs
Dealing with a wide range of products requires a huge stock or storage area for vendors. Inventory costs will rise if products are kept in the warehouse for an extended period of time.
Set a minimum order quantity for products to ensure that your stock gets cleared faster. This ensures that your customer purchases a minimum amount of the product. Even if you lose some small buyers, you can save money on inventory and prevent yourself from relying on excess inventory.
3. Increase Profit Margin
A WooCommerce store owner can easily manage order sizes by applying minimum order quantity restrictions. This results in a higher profit margin. Here’s how:
- Set the minimum order quantity to clear your slow-moving inventory. This will save money on inventory.
- Set the minimum order quantity to the best possible amount to ensure a satisfactory profit on each order.
- Set the minimum order quantity when your raw materials or processing costs are extremely high.
The benefit of Maximum Order Quantity
Running a WooCommerce business is becoming increasingly competitive in recent years. Setting maximum order quantity restrictions allows vendors to reach more customers with the products they have available. Here’s why:
- Avoid Inventory Shortage Issues.
- Always Keep Products in Inventory.
- Increase Your Customer Base.
1. Avoid Inventory Shortage Issues
A shortage of inventory is one of the extreme aspects of the supply chain cycle. A lack of inventory backfires you from meeting customer demands.
Use maximum order quantity restrictions on products that are in high demand. You can easily estimate the amount of inventory you need to keep in stock once you know the customer’s maximum order limit.
Apply maximum order quantity restrictions to avoid exceedingly large order quantities.
2. Always Keep Products in Inventory
Set a maximum order quantity to ensure that you always have products in inventory. Consider the following factors before imposing a maximum order quantity restriction on a product:
When selling discounted products, set maximum quantity restrictions. This way, you can prevent customers from purchasing a large quantity of discounted products.
Find out what your fast-moving products are. Set maximum order quantity restrictions on these products to ensure that you never run out of products.
Set maximum order quantity restrictions on a specific product if you want to reach more customers at once.
3. Increase Your Customer Base
Some products have the potential to generate market demand. However, in order to meet the demand for that specific product, production may require time, and stock may be limited.
However, you want to maintain the flow and reach more customers with the available stock.
In this case, limiting the maximum order quantity can solve the problem. It allows you to reach the greatest number of customers at once with your available products while avoiding the fear of running out of stock.
How to Apply Min Max Rule with WooCommerce Min Max Quantities
Let’s say you’re running an online business on the WordPress eCommerce platform or WooCommerce. Now, you can simply get WooCommerce Min Max Quantities from WordPress.org (free version) or you can go to pluginever.com to buy the premium version for your store. You can also take help from our documentation page for better understanding.
You don’t have to be technically skilled to use this plugin for your store. Using multiple rules, you can set minimum and maximum quantity rules as well as price requirements for different product types like product variations, product categories, product prices, and orders. Customers are unable to purchase items unless they meet the minimum/maximum criteria.
Applying various business strategies is necessary for vendors. One of these is the minimum and maximum order strategy. This facilitates vendors in maintaining their business strategies over time, which benefits vendors in every possible way.
Minimum and maximum order quantity restrictions serve different functions in the wholesale business, but both aim to maximize profit margins and ensure proper inventory management. The challenge now is determining your Min/Max limit and how easily you will limit bulk quantity ordering from your WooCommerce store.
This is how you can increase your store’s profit margin with the Min Max Quantities for WooCommerce plugin.