EXW vs FOB vs DDP: Shipping Terms Explained for Lingerie Buyers

Incoterms define who handles and pays for each part of shipping. The three you will meet most often are EXW, FOB and DDP.

EXW (Ex Works) means the price covers goods at the factory only — you arrange and pay for everything after. FOB (Free On Board) means the factory delivers the goods onto the vessel at the China port, and you cover ocean freight onward.

DDP (Delivered Duty Paid) means the supplier delivers to your door with duties paid — the simplest for new buyers but with more cost built in.

When comparing quotes, always confirm the Incoterm. A low EXW price and a higher DDP price can represent the same total cost once freight and duties are added.