Understanding shipping terms is crucial for pricing and delivery. The wrong incoterm can add 20% to your costs or cause customs nightmares.
Common Shipping Terms
FOB (Free On Board)
Buyer pays freight from port of loading:
- Seller’s responsibility: Goods loaded on vessel
- Buyer’s responsibility: Freight, insurance, customs
- Best for: Buyers with own freight forwarders
CIF (Cost, Insurance, Freight)
Seller pays to destination port:
- Seller’s responsibility: Freight and insurance to buyer port
- Buyer’s responsibility: Customs and inland delivery
- Best for: New importers wanting simple pricing
DDP (Delivered Duty Paid)
Seller handles everything:
- Seller’s responsibility: All costs including customs
- Buyer’s responsibility: Unloading only
- Best for: Hands-off approach, higher cost
Cost Comparison Example
For a 100kg yoga wear shipment from China to USA:
| Term | Cost | Effort |
|---|---|---|
| FOB | $500 + freight | High |
| CIF | $1,200 | Medium |
| DDP | $1,800 | Low |
Freight Options
Sea Freight
- Transit time: 20-35 days
- Cost: $0.50-2.00 per kg
- Best for: Bulk orders over 100kg
Air Freight
- Transit time: 3-7 days
- Cost: $4.00-8.00 per kg
- Best for: Samples and small orders
Express (DHL/FedEx)
- Transit time: 2-5 days
- Cost: $8.00-15.00 per kg
- Best for: Urgent samples
Tips for Yoga Wear
- Consolidate shipments to reduce per-unit cost
- Ship during off-season (April-May, September-October)
- Use freight forwarders for better rates
- Factor in customs duties (typically 12-16% for apparel)
At Yogaaga, we help brands navigate shipping logistics. We can arrange FOB, CIF, or DDP based on your preferences and connect you with reliable freight forwarders.