Incoterms — International Commercial Terms — answer one question: at which point does the cost and risk of the cargo move from the seller to you? Three terms cover the vast majority of first orders, and choosing between them is less about saving money than about matching the term to the control you want over your own freight.
The three terms, in practice
| Term | Seller handles | You handle | Fits |
|---|---|---|---|
| FOB | Factory to loading at the origin port (here: Ningbo), including export clearance | Ocean freight, insurance, destination clearance, inland delivery | Buyers with their own forwarder; the most common term for sea orders |
| CIF | Everything in FOB, plus ocean freight and cargo insurance to your port | Destination clearance and delivery from your port | Buyers who want the main shipment booked for them, at a visible price |
| DDP | Everything, door to door, duties included | Receiving the goods | First orders, small quantities and express/air shipments |
Risk transfer is the part people miss
The two terms that confuse buyers are FOB and CIF, because the freight payment and the risk transfer happen at different points. Under both, the cargo's risk transfers to you when it is loaded on the vessel at the origin port — CIF only moves who pays the freight, not who carries the risk once the container is on the water. In practice that means: under CIF you still want cargo insurance in place (the seller arranges a minimum cover, but your goods are worth your own decision on cover level), and under DDP the seller carries everything to your door, which is exactly why it is the cleanest term for a first order.
From Ningbo, three speeds
Our primary export port is Ningbo-Zhoushan, two hours from Jinhua. Sea freight is the economical default for full or partial containers; air and express cover samples, urgent restocks and smaller DDP orders. The part that changes the math for most buyers is consolidation: orders from several Jinhua factories — say drinkware from Yongkang and bags from Yiwu — are gathered and shipped as one container or one express pallet, so you pay one freight bill instead of seven.
Payment, alongside the term
Freight terms and payment terms are separate decisions. We support T/T, L/C, PayPal and credit card, in USD, EUR and GBP. Whichever term you pick, the split between deposit and balance is written into the order confirmation before production starts — no verbal terms, no surprises at the loading dock.
Tell us your destination, we will quote all three
For your first order we will give you FOB, CIF and DDP side by side for your route, so the choice is a number you can check — not a word a supplier used.
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