Lead In
If you’ve ever tried to import skincare from China—serums, masks, creams, or even full private‑label lines—you’ve probably bumped into the same confusing question: Which Incoterm actually saves me money? I remember the first time a new distributor asked me, “Leona, should I choose EXW or FOB? My freight forwarder swears CIF is easier!” And honestly, your shipping term can quietly make or break your entire profit margin.
Quick Answer (Snippet‑Friendly)
FOB typically gives the best balance of cost and control for most skincare importers. DAP is ideal for beginners who want stress‑free delivery, while EXW works only for experienced buyers with local agents. CIF looks convenient but often hides higher fees at the destination port.
Read On
Now let’s break down how each Incoterm actually affects your real landed cost—because once you understand who pays for what (and where risk transfers), you’ll never choose blindly again.
1. EXW (Ex Works): The "You Handle Everything" Option
With EXW, your supplier makes the goods available at their factory — and that’s it.
You handle pickup, export customs, shipping, import duties, and final delivery.
Best for:
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Experienced importers with their own freight network in China.
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Buyers wanting maximum control and transparency.
Pros:
✅ Full control over carrier and route choices.
✅ Potentially lower logistics costs if you have strong freight contacts.
Cons:
⚠️ You take on all export paperwork and risk once goods leave the factory.
⚠️ Unexpected costs (trucking, customs inspection, warehouse fees) can appear fast.
💬 In our OEM experience, we only recommend EXW for clients who already import from China regularly and have a trusted agent.
2. FOB (Free on Board): The Balanced Favorite
FOB means we (the supplier) handle everything up to loading your goods on the ship at the departure port.
You take responsibility once the cargo crosses the ship’s rail.
Best for:
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Medium to large skincare buyers.
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Distributors who work with their own freight forwarder for sea or air shipments.
Pros:
✅ Transparent control after port loading.
✅ Usually the most cost-efficient for total landed cost.
✅ You avoid inflated freight charges often seen with CIF deals.
Cons:
⚠️ You handle ocean freight, insurance, and destination customs clearance.
💡 Most of Amarrie’s wholesale clients choose FOB — it offers clean handover and predictable paperwork.
3. CIF (Cost, Insurance, and Freight): The “Set and Forget” Choice
With CIF, the supplier handles freight and insurance to your destination port — but not customs clearance or inland delivery.
You take over once the goods arrive.
Best for:
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First-time importers who want fewer steps.
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Buyers without access to their own shipping network.
Pros:
✅ Supplier arranges and pays for main transport.
✅ Lower workload during the shipping phase.
Cons:
⚠️ The supplier chooses the carrier, and sometimes freight costs are inflated.
⚠️ Hidden terminal handling and destination fees can add up.
⚠️ Risk technically transfers at the loading port — not arrival.
🧾 CIF can look cheaper on paper, but once destination charges hit, it’s rarely the lowest landed cost.
4. DAP (Delivered at Place): The “Door-to-Door Convenience” Option
DAP is the most convenient — the supplier manages nearly everything, right to your doorstep (excluding import duties and taxes).
You just receive the goods, handle local customs, and pay the duties.
Best for:
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Small to medium skincare businesses.
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Buyers who value time over micromanagement.
Pros:
✅ Simplifies logistics — supplier handles all transport and risk until arrival.
✅ Fewer middlemen and faster delivery.
✅ Predictable total landed cost (if supplier is transparent).
Cons:
⚠️ Slightly higher upfront price per unit.
⚠️ You’ll still need to pay import duties and VAT on arrival.
💬 In our company, we often recommend DAP for salon owners launching their first skincare brand — it saves stress, avoids shipping missteps, and gets you selling faster.
5. How Each Incoterm Impacts Landed Cost
| Term | Supplier Handles | Buyer Handles | Risk Transfer Point | Best For | Typical Cost Impact |
|---|---|---|---|---|---|
| EXW | Product only | All logistics | Supplier’s factory | Experienced importers | Low product cost, high logistics cost |
| FOB | Export & port loading | Freight & customs | Onboard at origin port | Balanced buyers | Best value overall |
| CIF | Freight & insurance | Customs & inland | Onboard at origin port | Beginners | Often inflated freight |
| DAP | Full delivery (excl. taxes) | Import duties | Destination | New buyers | Higher unit price, lower hidden cost |
6. So… Which Incoterm Lowers Total Landed Cost?
In real-world skincare trade, FOB usually wins for total landed cost.
It gives you:
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Fair control over freight pricing.
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Transparent risk handover.
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Fewer “surprise” terminal or handling fees.
But if you’re just starting out — or shipping delicate skincare items like glass serum bottles — DAP might be smarter despite higher upfront pricing, since it prevents costly errors or customs delays.
My Rule of Thumb:
If you have experience → Choose FOB.
If you’re new to importing → Start with DAP.
Avoid CIF unless you fully understand local port fees.
EXW only suits experts with local agents in China.
Final Thoughts
Shipping terms aren’t just fine print — they’re part of your pricing strategy.
Choose the wrong one, and your “cheap” shipment might end up costing 20% more after customs, demurrage, and documentation fees.
Choose wisely, and you gain predictable delivery and profit margins.
At Amarrie, we help our OEM skincare partners choose the most cost-efficient and secure shipping term for their region — whether that’s EXW to Lagos, FOB to Los Angeles, or DAP to Dubai.
👉 If you’re planning your next skincare shipment, let’s talk about which term fits your business best.
We’ve guided hundreds of brands through their first import — and saved them thousands on logistics.