Incoterms decide who handles what in international shipping — who pays for freight, who clears customs, who bears risk if something goes wrong. For B2B sports goods importers, choosing the wrong term can add 15-25% to your landed cost.
What Is DDP (Delivered Duty Paid)?
DDP means the seller (factory) handles everything — export clearance, international freight, import clearance, duties, and last-mile delivery to your warehouse. You just receive the shipment at your door.
- Best for first-time importers and small order quantities
- Higher per-unit cost due to seller's risk premium
- Fastest setup — no customs paperwork on your end
- Recommended for orders under 500 pieces
What Is FOB (Free On Board)?
FOB means the factory delivers goods to the port and loads them onto the vessel. From that moment, the buyer takes ownership and handles freight, insurance, and import clearance. FOB terms usually specify the port (e.g., 'FOB Karachi').
- Cheapest option for high-volume regular importers
- Buyer chooses their own freight forwarder
- Requires the buyer to have import infrastructure
- Recommended for orders above 1,000 pieces
What Is CIF (Cost, Insurance, Freight)?
CIF is the middle ground — the factory pays for freight and marine insurance to your destination port, but you handle import clearance and inland delivery. CIF is ideal for buyers who want more control than DDP but don't want to arrange freight themselves.
Transit Time Comparison
- USA — Air express: 4-5 days · Ocean FCL: 22-25 days
- UK & EU — Air express: 3-4 days · Ocean FCL: 18-20 days
- Australia & GCC — Air express: 5-6 days · Ocean FCL: 16-18 days
- Canada — Air express: 5-6 days · Ocean FCL: 24-28 days
Which Term Should You Choose?
New importer with a small test order → DDP. Regular importer with 1,000+ pieces per order → FOB. Buyer who wants hands-off freight but controls import → CIF. Most of our clients start on DDP and switch to FOB once volumes stabilize.
“We recommend DDP for the first two orders — it removes all friction and lets you focus on selling. From order three onward, FOB usually saves 15-20%.”
— Rifaty Logistics Desk
Not sure which term fits your situation? Send us your destination city and order volume — we'll send a side-by-side cost comparison for all three terms.