Table of Content
Introduction
Every India sourcing quote has three letters attached to the price: EXW, FOB, or DDP. Buyers often treat this as a shipping detail and move straight to the number that matters – the unit price. That’s the mistake. The Incoterm decides who owns the risk, the paperwork, and the cost between the factory floor and your warehouse. Get it wrong and the “cheaper” quote ends up costing more.
EXW looks cheapest on paper - and rarely is
Under Ex Works, the supplier’s responsibility ends the moment goods leave their factory gate. Loading, local transport, export clearance, ocean freight, insurance, and import duties all become your job. First-time buyers routinely underestimate these add-on costs by 15–20%, and if there’s a documentation error at origin, you’re the one fixing it from another country.
FOB is where most experienced buyers land
Free On Board means the supplier handles everything until your goods are loaded onto the vessel at the Indian port. From there, freight and destination costs are yours. It’s a fair split – you get transparent production pricing and control over your own freight forwarder, without being responsible for anything happening inside India.
DDP sounds easiest - and that's exactly the risk
Delivered Duty Paid means the supplier arranges everything, including customs clearance and duty payment at your end, and delivers to your door. It’s convenient. It also means you lose visibility into what duty was actually declared and paid, and you’re entirely dependent on a freight partner chosen by your supplier – one with no incentive to find you the best rate.
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The real takeaway
The Incoterm isn’t fine print – it’s a risk allocation decision disguised as a shipping term. Before your next PO, ask for the same order quoted under all three terms, side by side. The gap between them will tell you more about your real landed cost than the unit price ever will.
We quote every new buyer under more than one Incoterm by default, specifically so this comparison isn’t something they have to think to ask for.
Get a Landed Cost Comparison, Not Just a Quote
Azoonis breaks down EXW, FOB, and DDP pricing for every order so you know exactly what you’re paying for – and what you’re not.
