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How to choose between FOB, CIF and DDP

Wrong trade terms are often caused by mistaking the retail store for the importer. Figure out who you're talking to before deciding who's responsible for shipping, insurance, and customs clearance.

Object type determines terminology

ObjectMore common appeals
Independent retail storesSmall items are delivered to the store, caring about door-to-door cost and timeliness.
WholesalersYou may need a warehouse address, and we will discuss shipping only after the batch is made.
Importersare more familiar with FOB/CIF and ports.

Separate channels when search to avoid quoting retail stores with FOB terms that only those with port experience can understand.

Ask the freight forwarder before writing a quote

DDP includes tax to the door, and the cost changes with the country of destination; FOB leaves the follow-up to the buyer. Based on your freight forwarder's executable plan, don't promise "all tax included" in the development letter. For the quotation format, see Quotation.

Term definitions are subject to the International Chamber of Commerce Incoterms and contracts. This page only explains how to match the customer acquisition target.

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