Operator glossary
Incoterms for Amazon sellers (EXW, FOB, CIF, DDP)
The three-letter codes deciding where the factory's job ends and yours begins — FOB is the container default, DDP the parcel default, and EXW the trap quoted to look cheap.
Incoterms fix the handoff: EXW (you collect at the factory door — their lowest quote, your maximum scope), FOB (factory delivers loaded on the vessel at the origin port — the standard for container buys from China, keeping freight under your control), CIF (they arrange freight to your port — convenient, opaque, and you still own import clearance), DDP (delivered duty paid to the final door — one price, all inclusions, all opacity).
The seller-side pattern: FOB for FCL volumes (your forwarder, your rates, your visibility), DDP for parcels and LCL where per-kg all-in pricing wins on simplicity. The EXW trap: factories quote it to look cheap, then origin charges surface; the CIF trap: their forwarder's destination fees ambush at the port. Whatever the term, landed-cost-per-unit is the only comparable number.
The numbers
- EXW = factory door; FOB = loaded on vessel (container default); CIF = their freight, your import; DDP = their everything.
- Compare quotes only as landed cost per unit — each term hides different charges.
Related terms