When purchasing with Chinese suppliers, having your price or shipping terms correct can be crucial. Common shipping methods like FOB, CNF, CIF, and EXW, which one is the best for your situation??
Before getting into that, you have to understand that there is no ONE best pricing or shipping option to use. It all depends on what you’re ordering, how big your order is, what shipping method you plan to use, etc. So, it’s not all white and black.
Should you use FOB pricing with your supplier? It really depends on your order size and weight. If you will use sea freight, then yes, FOB is the way to go. If you will use air freight then, again, FOB is the way to go (only this time it will be to an airport instead).
If, however, your order is small and you will use a courier delivery service, you should not use FOB. In this case, use EXW instead.
By courier shipping, like DHL, FedEx, EMS, TNT, and others. Delivery from China via courier usually just takes 4-15 business days varying on the country. But you have to know that courier shipments are very expensive so they are more suitable for small items (and sample orders).
If you have decided that courier shipping is the way to go, you should ask your supplier for the EXW price AND ask them to get a courier shipping quote for you.
If you choose CNF or CIF shipping method, a much better alternative is to use a freight forwarding agent for your shipments from China. These companies take care of EVERYTHING and will deliver the goods to your door without you having to mess around with the customs clearance procedure.
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