EXW, FOB or DDP: choosing a trade term for your first order
What each term means for price, risk and paperwork, in plain English.
EXW puts the work on you
Ex Works is the lowest quoted price, because collection, export clearance and freight are left to the buyer.
FOB is the common middle ground
Under FOB the supplier delivers to the vessel at the port of loading; you arrange the main freight.
Delivered terms are simplest
Under delivered terms the seller handles freight and import formalities to an agreed place. The price is higher, the work on your side much lower.
The cheapest term on paper is not always the cheapest order.
