Shipping terms — also called Incoterms — decide who pays for what and who takes responsibility at each stage of the shipment. Choosing the wrong one can cost you time and money. Here is a clear breakdown of the three most common terms.

1. FOB (Free On Board)

What it means: The supplier delivers the goods to the port in China. From that point, you (the buyer) pay for freight, insurance and delivery to your destination.

  • Who pays: You pay for sea freight, insurance, destination charges and delivery
  • Who takes risk: Risk transfers to you once the goods are on board the ship
  • Best for: Experienced importers who have a freight forwarder
  • Cost control: Highest — you control the shipping cost

2. CIF (Cost, Insurance and Freight)

What it means: The supplier pays for freight and insurance to your destination port. You handle customs clearance and final delivery.

  • Who pays: Supplier pays freight and insurance to destination port; you pay customs and delivery
  • Who takes risk: Risk transfers to you once the goods are on board, but supplier arranges freight
  • Best for: Importers without a freight forwarder who still want control over customs
  • Cost control: Medium — you still control destination charges

3. DDP (Delivered Duty Paid)

What it means: The supplier handles everything — freight, insurance, customs, duties and delivery to your door or Amazon warehouse.

  • Who pays: Supplier pays for everything
  • Who takes risk: Supplier takes all risk until delivery
  • Best for: First-time importers, Amazon FBA sellers, small orders
  • Cost control: Lowest — but the most convenient

4. Comparison table

  • FOB — cheapest total cost, most work for you
  • CIF — balanced cost and effort
  • DDP — highest unit cost, least work for you

5. Which one should you choose?

  • New to importing? Start with DDP — simplest, fewest surprises
  • Selling on Amazon FBA? DDP to Amazon warehouse is often easiest
  • Ordering full containers regularly? FOB with your own forwarder saves the most money
  • Middle ground? CIF lets you control customs while the supplier arranges freight

6. Common mistakes to avoid

  • Assuming DDP covers everything — always confirm duties and destination charges
  • Choosing FOB without a freight forwarder — you will be stuck at the port
  • Not insuring the shipment — always insure for at least 110% of value
  • Ignoring port charges — destination fees can add $200–500 per shipment

7. What we support

We ship under EXW, FOB, CIF and DDP, and can deliver directly to Amazon FBA warehouses in the US, UK, Germany, Canada and Australia. Contact us with your destination and we will quote the most cost-effective option.