Buyer guide

EXW, FOB or DDP: which trade term should your activewear order use?

What each term actually transfers, why the published catalogue is EXW, and how we quote DDP once you have chosen your styles.

By Daniel Lee · Co-founder5 min readTerms confirmed for GOSMANO projectsWritten from our published offer and payment terms

Short answer

EXW means you collect from our door and arrange everything after that. FOB means we get the goods to the port and you take over. DDP means we deliver to your address with duty paid. Our catalogue prices are EXW, because freight depends on your address, the mode and the weight. Once you have chosen your styles, we quote DDP on top of that price.

What each term actually moves

The letters are not a price format: they mark the exact point where cost and risk change hands.

Under EXW, the buyer is responsible from the moment goods are ready at the factory — pick-up, export clearance, freight, insurance, duty and the last mile. The quoted price is the lowest of the three because almost none of that is included.

Under FOB, the seller pays to get the goods onto the vessel at the named port, including export clearance. The buyer pays ocean or air freight, insurance, duty and delivery onward. Most experienced importers use this, because a forwarder they already trust handles the part they know best.

Under DDP, the seller carries everything to the buyer's door, duty included. It is the only one of the three that lets a buyer budget without knowing freight rates at all.

Why the published catalogue is EXW

The price list on the [product range](/products) shows one number per style per quantity band. That number cannot include freight, because freight depends on the destination, the mode, and the weight of what you actually ordered.

Two buyers ordering the same leggings pay very different amounts to get them home: one consolidates a container by sea, the other needs air freight before a launch date. Quoting one landed price to both would build the worst case into the price.

We deliberately do **not** fold DDP into the unit price. Doing that would lift every price on the catalogue for buyers who already have a forwarder, and it would hide what you are actually paying for the goods.

What we do instead: you pick the styles and quantities, tell us the delivery address, and we quote the delivered price on top of the EXW figure, with freight shown as its own line. You see both numbers and can decide which route to take.

When DDP is the right call

DDP suits small ready-stock orders where the buyer has no forwarder and no appetite for customs paperwork. You pay more per unit than EXW, but you know the total before you commit.

It also suits testing: an air-shipped stock order tells you whether a style sells without building an import operation.

When FOB is better

If you already have a forwarder, FOB is usually cheaper and gives you more control. You choose the carrier, you control consolidation, and you can combine several suppliers into one shipment instead of paying for each separately.

FOB also scales better: once you move into repeat production, your forwarder's rate stops being a rounding error.

Two things that go wrong

The first is assuming the quoted price includes shipping. It rarely does, and the gap between EXW and delivered can be larger than the per-unit difference between two factories, which is why buyers sometimes pick the wrong supplier on a number that was never comparable.

The second is the last mile. DDP arrangements often break down at delivery, where a residential address, an appointment window or a lift restriction adds cost that nobody quoted.

What to ask before you choose

Ask which term the quote is under, in writing. Ask for freight as a separate line regardless of the term. Ask who clears customs at destination and who pays if the shipment is held. Then compare quotes only between suppliers using the same term.

Our own quotes start from the [request form](/rfq), and the production sequence behind the timing is on [how it works](/how-it-works). Ready-stock orders are paid in full before dispatch; bulk orders use a 30 percent deposit with the 70 percent balance before shipment. Standard production is planned at 20 to 30 days after approvals, so the shipping term is settled well before the goods are ready.

Buyer questions

Is shipping included in your price?

No. Catalogue prices are EXW, so shipping, insurance and duty are quoted separately against your destination. That keeps the product price comparable between buyers in different countries.

Can you quote DDP instead?

Yes. Tell us the styles and quantities you want and the delivery address, and we quote the delivered price on top of the EXW figure, with freight broken out so you can see both.

Who pays the customs duty?

Under EXW and FOB it is the buyer. Under DDP it is the seller, and that cost is already inside the delivered price we quote.

How long does shipping take?

Air freight is planned at 7 to 10 days and sea freight at 20 to 30 days, counted from the day goods leave the factory. Customs clearance at destination is additional and depends on the port.

What are the payment terms?

Ready-stock orders are paid in full before dispatch. Bulk production uses a 30 percent deposit, with the 70 percent balance due before shipment.

Ready to price your own order?

Send your styles, quantities and target market — we will confirm availability, MOQ and shipping before you commit.

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