Since importing from China could be an intricate practice, many distributors seek a reliable way of comparing FOB and EXW in China. That because they want to make sure that the goods they bought will hit the land in one piece!
We, at the DDPCH, want to help the traders to experience the best transaction processes. So, here’s our guide on how to compare FOB and EXW in China to get the best deal.
What Do They Stand for?
FOB is the acronym for Free on Board or, as some suggest, Freight on Board. That’s while the term EXW stands for Ex-work, which is a transferring technique some traders use when exporting products from PRC to their country.
Ex-Work Adds Up to Your To-Do List
When you sign a transportation contract under the Ex-work conditions, you’re in charge of the cargo from the moment that it gets out of the factory. So, when the supplier claims that the properties are ready to ship, you must pick them up and handle the rest.
That means you’re going to be responsible for bringing the cargo to a warehouse, pack it properly, deliver it to an airport or seaport (depending on the transportation method which could be air freight or sea freight). And finally, it’s you who have to take care of the exportation paperwork.
Based on this information, if comparing FOB and EXW in China is still a concern, have these in your mind:
- Using EXW techniques cheapens the final price.
- However, it adds to the overall work that you must take care of.
FOB Keeps the Seller in Charge
Eurostat believes “the FOB (free on board) value of exports and imports of goods is the value of the goods at the exporter’s customs frontier.”
However, to put it in human language, during this process, the supplier/seller is responsible for the cargo. So, they need to take care of the packing, the transfer, storing (if necessary), and delivering the merchandise.
When comparing FOB and EXW in China, keep this information about Free on Board in your mind:
- The supplier can deliver the cargo for a fair price since they work with the top shipping agencies in their area.
- You don’t have to find a reliable warehouse to store the consignments, as the supplier will handle this part as well.
- However, the FOB prices can differ since the dealers work with various forwarders, and it affects the charges.
We Are Good at Comparing FOB and EXW in China
Most traders who’re a part of Fulfilment by Amazon in China want to know FOB and EXW are worth it or not.
But it’s hard to say. The best method of comparing FOB and EXW is defined after analyzing the cargo. And we are the expert of such analysis.
So, if you want to determine the best shipment technique, contact us right away and let our professionals lend a hand with your needs.