Should You Choose EXW? A Quick Buyer’s Guide

1. What Does EXW Mean in Shipping?

EXW (Ex Works) means the seller makes the goods available at their premises (factory, warehouse, etc.), and the buyer is responsible for everything after that — from pick-up to export customs clearance, international shipping, import clearance, and final delivery.

In short: Seller gets the goods ready. Buyer does everything else.

Example: You buy massage guns from a supplier in Shenzhen under EXW terms. They will have the goods packed and ready at their warehouse. You (or your agent) need to handle pick-up, China customs clearance, shipping, insurance, and delivery to your destination.

2. What Is EXW Price?

The EXW price includes:

  • Product cost
  • Local packaging
  • Possibly some basic handling costs

It does not include:

  • Export duties or taxes
  • Customs clearance fees
  • Inland transportation
  • Sea/air freight or insurance

That’s why EXW prices are usually the lowest among all trade terms — but that doesn’t mean it’s always the best choice.

3. When to Use EXW?

EXW is a good choice when:

  • You have a strong logistics team or freight forwarder in the seller’s country
  • You’re buying small trial orders or samples
  • You want more control over the shipping process

It’s not ideal when:

  • You’re unfamiliar with the local export process
  • You don’t have a reliable agent to handle pick-up and clearance
  • You want the seller to take on more responsibility

4. EXW vs. Other Common Trade Terms

Here’s a quick comparison to help you understand how EXW stacks up against other popular Incoterms:

  • FOB is often preferred when buyers want the seller to handle export paperwork.
  • CIF is useful when you want the seller to handle shipping and insurance.
  • DDP is best when you want a door-to-door solution.
  • EXW gives you the most control — but also the most responsibility.

5. Common Mistakes to Avoid with EXW

  • Assuming the seller will help with export customs. Under EXW, they don’t have to.
  • Not confirming pick-up readiness. Make sure you communicate clearly with the seller about when and where the goods will be ready.
  • Overlooking costs like export declaration, trucking, or terminal handling. These can add up quickly if you’re not prepared.

Is EXW Right for You?

Ask yourself:

  • Do I have a trusted freight forwarder?
  • Am I okay taking full responsibility from factory to my warehouse?
  • Do I want a cheaper product price and handle logistics myself?

If the answer is yes — EXW might be a good fit. If not, consider using FOB or CIF for a smoother experience.

Final Thoughts

EXW is simple, but it comes with big responsibilities. It’s perfect for experienced importers or those working with strong logistics partners. But if you’re new or want a more hands-off experience, start with something like DDP, FOB or CIF.

Still unsure? We’re happy to help!

We specialize in helping global buyers with one-stop sourcing solutions — from product selection, customization, factory coordination, and quality inspection to arranging efficient and cost-effective shipping.

If you have any questions about EXW or need guidance on choosing the most suitable shipping terms, feel free to contact us anytime. SourcingXpro is committed to making your trade journey easier and more reliable.