Incoterms for Bag Import: FOB, EXW, CIF, DDP Explained

Published: August 24, 2026 | 8 min read

Incoterms define who pays and bears risk in international shipping. For bag imports, FOB (free on board) is most common — buyer pays ocean freight and insurance from the port; EXW (ex-works) puts all logistics on the buyer; CIF adds freight+insurance to the seller's quote; DDP (delivered duty paid) is door-to-door including duties. This guide helps wholesalers pick the right term.

The Sourcing Map

Type	FOB Cost	Retail	Use
Term	Seller pays to	Buyer pays	Risk moves at
EXW	Factory gate	Everything	Factory gate
FOB	Port load	Ocean+import	Ship rails
CIF	Port+sea ins	Import duties	Destination port
DDP	Door + duties	Nothing	Buyer door

Pair this with the landed-cost and import-handbags guides for a complete wholesale import playbook.

Materials & Construction

Freight quote Compare FOB vs CIF.
Insurance 110% cargo value.
Customs broker For import clearance.

MOQ and Pricing

Any MOQ Term independent of MOQ.
FOB standard Most factories quote FOB.
DDP option Ask for door price.

Margin check in the tote buyers guide; crossbody best sellers cover popular bulk merch.

Quality Control

Packing list Matches PO.
Incoterm on PI Clear in contract.
AQL 2.5 Pre-shipment.

Inspect at AQL 2.5 standards before shipment.

Where to Sell & First Order

New importers Term education.
Amazon sellers DDP simplifies.
Distributors FOB + own freight.

Get a Sourcing Catalog & Quote

Get an FOB quote in 24h.

Frequently Asked Questions

Which incoterm is best for bag import?

FOB is standard and gives buyers freight control; DDP is simplest (door-to-door, duties included) but pricier.

What is the difference between FOB and CIF?

Under FOB the buyer arranges and pays ocean freight; under CIF the seller includes freight and insurance in the quote.

Is EXW a good deal?

EXW looks cheap but the buyer handles all export/domestic logistics from the factory gate — often not cheapest overall.