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FOB, CIF, DDP — Which Incoterm Should You Pick?
Buying Guide · · 7 min read · By Martin Chow

FOB, CIF, DDP — Which Incoterm Should You Pick?

A no-nonsense breakdown of the three Incoterms most distributors negotiate, with cost examples from a real 20’GP container of car accessories.

Table of contents (4 sections)

Picking the right Incoterm can swing your landed cost by 8–12%. Here’s the practical guide we walk new buyers through.

FOB (Free On Board)

We deliver to the port and load the container. You arrange ocean freight, insurance, and import. Best if you have a freight forwarder you trust — you keep the margin.

CIF (Cost, Insurance, Freight)

We pay ocean freight + insurance to your destination port. You handle customs and last-mile. Good middle ground.

DDP (Delivered Duty Paid)

We deliver to your warehouse, duties included. Highest unit cost, lowest hassle. Right choice for first-time importers and Amazon FBA shipments.

Real example: 20’GP, 3,000 mounts to Los Angeles

  • FOB Guangzhou: $11.40/pc
  • CIF Los Angeles: $12.10/pc
  • DDP your warehouse: $13.20/pc

If you can manage forwarder + customs broker yourself, FOB saves you $5,400 on this single container. If not, DDP is worth every cent of peace of mind.

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What shipping options are available?
DHL/FedEx/UPS air; sea freight for volume. FOB, CIF, DDP. Amazon FBA direct. See full answer →
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