Trade Basics

Incoterms Explained Simply: EXW vs FOB vs CIF vs DDP for Importers

January 19, 2026 · 6 min read

Incoterms decide who pays for what and who carries the risk at each stage of shipping. Choosing the wrong one can add 15-25% hidden costs to your import.

EXW (Ex Works) — "Factory Gate"

You take responsibility from the supplier's door. Cheapest quoted price, but YOU arrange Turkish inland transport, export customs, and everything after. Choose only if you have a freight forwarder in Turkey.

FOB (Free On Board) — Most Popular

Supplier delivers goods loaded on the vessel at a Turkish port (Mersin, Istanbul). You control and pay for sea freight + insurance + everything after. Best balance of control and simplicity — recommended for most buyers.

CIF (Cost, Insurance, Freight)

Supplier pays freight and minimum insurance to YOUR port. Convenient, but suppliers often add margin on freight, and the minimal insurance may not cover you properly. Good for first-time importers.

DDP (Delivered Duty Paid) — "Door to Door"

Supplier handles everything including import duties in your country. Most expensive but zero hassle. Rarely offered for large B2B shipments; common for samples and small parcels.

Quick Decision Guide

• First import ever → CIF or DDP • Regular importer with forwarder → FOB • You have a team/agent in Turkey → EXW • Comparing quotes → always convert everything to landed cost at your warehouse

Pro Tip

When you request quotations on Mall Of Türkiye, specify your preferred Incoterm and destination port — suppliers quote accordingly and comparisons stay apples-to-apples.

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