EXW, FOB and DDP decide who handles each leg of a custom bag shipment, not the price of the bag: EXW ends at our factory door, FOB ends with the goods loaded at the Chinese port, DDP ends at your address with duties paid. For a 100-500 piece first order the choice depends on carton count: around 300 pieces LCL sea on FOB is usually the cost-efficient route, while 100-piece pilots often go by air or courier on DDP. Ask for pieces per carton, carton dimensions and total CBM with every quotation; Elandmake states them for the actual product, with MOQ 300 pieces per style and colorway.
"Should I ask for EXW or FOB?" is one of the most common questions in the first email a new pet brand sends us, usually alongside a request for DDP to a specific city. The honest answer is that the term you pick decides who handles which leg of the journey, and for a first order of 100–500 pieces the right choice depends more on the box count than on the price per bag. This guide explains the three terms as they apply to a custom bag order, then gives a decision table by order size and destination.
What EXW, FOB and DDP Actually Cover for a Bag Order
All three are Incoterms, the standard trade terms published by the International Chamber of Commerce. They define the hand-over point between seller and buyer, not the quality of the goods or the payment schedule.
| Term | Where the factory's responsibility ends | What the buyer arranges | Typical use for bags |
|---|---|---|---|
| EXW (Ex Works) | Goods packed and ready at our factory door in Jinhua | Everything: pickup, export customs, freight, import customs, duties, delivery | Buyers with their own China forwarder consolidating several suppliers |
| FOB (Free On Board) | Goods cleared for export and loaded on the vessel at the named Chinese port | Ocean freight, insurance, import customs, duties, delivery | Most first orders by sea; the buyer's forwarder takes over at the port |
| DDP (Delivered Duty Paid) | Goods delivered to the buyer's address with duties and taxes paid | Nothing beyond receiving the goods | Small first runs by air or courier, or buyers without an import setup |
Two points that trip up first-time importers:
- FOB and EXW prices do not include freight. A lower EXW number is not a cheaper order once pickup and export clearance are added. Compare landed cost, not the quoted term.
- DDP moves risk and paperwork to the factory, and the price reflects that. The DDP figure includes freight at the time of quoting, duties at the current rate for your destination, and a margin for the import handling. It is the easiest term and the least transparent one.
Decide by Box Count, Not by Bag Count
For a custom pet carrier or organizer bag, the freight question is volumetric. A 300-piece order of a soft carrier packed 10 per carton is 30 cartons; the same order of a semi-rigid crate packed 4 per carton is 75 cartons. That difference, not the unit price, decides whether air freight is a sensible option.
| First order | Sea (LCL) | Air freight | Courier (DHL / FedEx / UPS) | Term that usually fits |
|---|---|---|---|---|
| 100 pieces, 1–2 CBM | Possible, but port charges weigh heavily on a small shipment | Often the practical choice | Workable for compact items | DDP or air FOB |
| 300 pieces, 3–6 CBM | Usually the cost-efficient route | Only for a deadline | Rarely | FOB |
| 500 pieces, 6–12 CBM | Standard | Rarely | No | FOB; DDP if you have no import setup |
Two figures decide this table for your own product, and both come from the factory before the quotation is final: pieces per carton and carton dimensions. Ask for them together with the unit price. If a supplier quotes a unit price without packing data, the freight estimate you build on it will be wrong.
Transit times, freight rates and duty rates change with the season and the route. We do not publish them; your forwarder's quote is the number to use.
Where the Cost Moves Between the Three Terms
The bag costs the same to make whichever term you choose. What moves is everything around it.
| Cost item | EXW | FOB | DDP |
|---|---|---|---|
| Export packing and carton | Factory | Factory | Factory |
| Pickup from factory to port | Buyer | Factory | Factory |
| Export customs clearance | Buyer | Factory | Factory |
| Port handling and loading | Buyer | Factory | Factory |
| Main freight (sea or air) | Buyer | Buyer | Factory |
| Insurance | Buyer | Buyer (optional) | Factory |
| Import customs and duties | Buyer | Buyer | Factory |
| Last-mile delivery | Buyer | Buyer | Factory |
For destination markets where the import process is unfamiliar — a distributor's first shipment into Mexico is a common example — the question "which term do you recommend" usually resolves to: FOB if you already have a customs broker, DDP for a small pilot if you do not. Once the pilot has cleared, most buyers move to FOB for the reorder because they can see the freight and duty lines separately.
Data to Request With Every Quotation
A quotation that can be compared across suppliers and terms lists these items, whatever the term:
- unit price and the term it is quoted on (EXW / FOB named port / DDP named address);
- pieces per export carton, carton dimensions and gross weight;
- total cartons and total CBM for the quoted quantity;
- HS code the factory will declare, so your broker can check the duty rate;
- production lead time from written sample approval, and whether the freight window is included;
- validity of the quote, since freight-inclusive terms move with the market.
At Elandmake the standard MOQ is 300 pieces per style and colorway, sampling is generally 3–7 days, and bulk production is generally 15–30 days for light customization or 20–45 days for heavy customization. Standard payment terms are a 30% deposit on order confirmation and 70% balance before shipment; highly customized or complex projects normally use 50% / 50%. Packing data is stated in the quotation for the actual product, not from a generic table. Our MOQ guide covers how the minimum applies per colorway, and our North America import compliance guide covers the documents your broker will ask for at the border.
Planning a first order and not sure which term to ask for? Contact Elandmake with the product reference, quantity, destination city and whether you already work with a forwarder or broker. We will quote on the term that fits and include the packing data so you can check the freight yourself. Reference products for planning: airline-approved pet carrier, pet travel backpack, folding pet crate.
Frequently Asked Questions
Is FOB or EXW cheaper for a custom bag order?
Neither is cheaper by itself. EXW shows a lower number because pickup, export clearance and port charges are left for the buyer to pay separately. Compare the landed cost at your door under each term, using the same packing data.
Can a factory quote DDP to the United States, Canada or the EU?
Yes. A DDP quote includes freight, import duties and delivery at the rates current when the quote is issued, and is valid for the period stated on it. It is the simplest term for a pilot order and the least transparent, because the duty and freight lines are inside one number.
What packing information do I need to estimate freight?
Pieces per carton, carton dimensions, gross weight per carton and total CBM for the quoted quantity. With those four figures a forwarder can price sea, air or courier for the exact shipment.
Does the Incoterm change the payment terms?
No. Payment terms are agreed separately. Elandmake's standard is a 30% deposit on order confirmation and 70% balance before shipment, or 50% / 50% for highly customized projects, whichever term the goods are shipped on.
