Shipping & Logistics
Understanding Incoterms for Marketplace Sellers
Incoterms define who pays and who is liable in a shipment. Know the essentials before you ship internationally.
Incoterms Explained
Incoterms are the international rules that define responsibilities between buyer and seller in a shipment — who arranges transport, who pays freight, and who bears risk at each stage.
Common terms to know
- EXW: the buyer collects from your premises, taking most responsibility
- FOB: you deliver to the vessel; buyer takes over thereafter
- CIF / CIP: you arrange and pay freight plus insurance to a destination
- DDP: you deliver and pay duties to the buyer's door
Choosing terms wisely
Your choice affects both price and buyer experience. DDP offers the smoothest buyer experience but transfers duty cost responsibility to you. Model the costs and communicate clearly which terms apply.
Understanding Incoterms lets you price accurately and avoid disputes about who pays what on international orders.
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