Incoterms Used in the Freight Forwarding Business

When purchasing goods from your supplier it is important to know what terms you are getting into. Incoterms are used to describe where the responsibility is transferred from the manufacturer on to the buyer.

AMZ Transport Usually works EXW*, and in some instances FCA** or FOB***. You can see the full overview below.

Shipping Incoterms 2017
*EXW means that the supplier is responsible for manufacturing the goods and leaving the products at a specified site(Typically their own warehouse)

**FCA means that the supplier is responsible for bringing the goods to a specific destination, agreed upon between the manufacturer and the Buyer, and for paying export and customs duty.

***FOB is a term mainly used in the context of ocean freight. As opposed to an FCA agreement, an FOB agreement means that the supplier is also responsible for loading the goods on the boat at the closest port. However as most shipments to Amazon are mainly consolidated in Shenzhen we usually recommend and EXW agreement.