If you're buying wholesale clothing from China, one question comes up before almost every order: "What do the shipping terms mean?" You'll see abbreviations like FOB, EXW, CIF and DDP on quotes and invoices — and they decide something far more important than how your goods travel. They decide who pays for shipping, who owns the risk, and who clears customs.
Get this wrong, and a price that looked cheap can end up costing you hundreds more in hidden freight and duty. This guide explains the four most common terms in plain language, with a real example for each.
A Quick Comparison First
| Term | What it means | Who arranges main shipping? | Who pays freight & insurance? | Best for |
|---|
| EXW | Ex Works — goods picked up at factory | Buyer | Buyer | Experienced importers with their own freight forwarder |
| FOB | Free On Board — seller loads goods onto the ship | Buyer (after loading) | Buyer | Most first‑time importers (most common) |
| CIF | Cost, Insurance & Freight — seller ships to destination port | Seller | Seller | Buyers who want one simple quote |
| DDP | Delivered Duty Paid — seller delivers to your door, duties included | Seller | Seller | Small orders / buyers who want zero logistics hassle |
What Is FOB? (Free On Board)
FOB is the most common term in clothing wholesale, and usually the best starting point for first‑time importers.
Under FOB:
The seller (EBuyone) is responsible for getting your goods to the port and loaded onto the vessel.
From that moment on, you own the goods and pay for the ocean/air freight, insurance, import duties, and delivery to your warehouse.
Real example: You order 1,000 t‑shirts at a unit price of "FOB Xiamen $2.50". That $2.50 covers the product plus getting it onto the ship in Xiamen. Freight from Xiamen to your port, plus customs and final delivery, is on you.
What Is EXW? (Ex Works)
EXW is the simplest term — and the one where the buyer takes on the most responsibility.
Under EXW, the seller's only job is to have your goods ready at the factory or warehouse. You (or your forwarder) collect the goods, handle export clearance, arrange the entire shipment, and pay for everything.
When to choose EXW: Only if you already have a trusted freight forwarder and want maximum control. For most buyers, it adds complexity without saving much.
What Is CIF? (Cost, Insurance & Freight)
Under CIF, the seller pays for the goods, the freight, and basic insurance up to your destination port. You still handle import duties, customs clearance at destination, and final delivery from the port to your door.
When to choose CIF: When you want one simple number and don't want to arrange ocean freight yourself. Note: CIF insurance is often basic — it covers total loss, not every type of damage.
What Is DDP? (Delivered Duty Paid)
DDP is the most buyer‑friendly and most hassle‑free option — and usually the most expensive. Under DDP, the seller takes care of everything: freight, insurance, export and import duties, and delivery right to your address.
When to choose DDP: Small orders, samples, or buyers who don't want to deal with any logistics. The convenience is priced in.
Which Term Should You Choose?
| Your situation | Recommended term |
|---|
| First‑time importer, want a simple clear price | FOB |
| You have a freight forwarder and full control | EXW |
| You want one quote without arranging freight | CIF |
| Small order, want zero logistics hassle | DDP |
A note on lead time vs. transit time: Shipping terms decide the transit portion only. At EBuyone, ready stock ships in 3 days and OEM/ODM custom orders have a production lead time of 7–15 days — transit time is then added on top, depending on the term and destination.
Frequently Asked Questions
Q: Which shipping term is best for a first‑time importer?
A: FOB is the safest starting point. The unit price is clear, you choose your own forwarder, and you're not overpaying for bundled services.
Q: Who pays customs duties under DDP?
A: The seller does. That's the whole point of DDP — duties and delivery to your door are included in the price.
Q: Is FOB cheaper than CIF?
A: Not necessarily. FOB shows a lower unit price but leaves freight and insurance to you. Compare the total landed cost, not just the sticker price.
Q: Can EBuyone help me arrange shipping?
A: Yes. Tell us your destination and order size, and we'll recommend the best term and provide freight estimates. We can often quote FOB, CIF, or DDP so you can compare.
Still Have Questions?
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