Begin with the cost you are trying to compare

The supplier price is not the landed cost. Landed cost includes the product, freight, insurance where relevant, duties and taxes, customs handling, consolidation and delivery to the final destination.

DDP, FOB and EXW place responsibility at different points in that chain. Comparing the labels without comparing the included costs can create a false saving.

Use one worked-cost template

Run the same template for every quote. If a supplier cannot explain what is included in DDP, ask for a cost breakdown rather than treating the delivered price as automatically safer.

  • Product cost at the actual quantity and packaging level.
  • Export handling, freight and insurance.
  • Duty rate and the value used for customs assessment.
  • Brokerage, port or airport fees and destination handling.
  • Final-mile delivery, appointment fees and any returns reserve.
  • Inspection, repacking, labels and financing costs.

Choose based on control and risk

DDP is convenient because the seller handles much of the route, but the buyer should still understand the declared value, destination charges and delivery scope. FOB or EXW can offer more control, but the buyer must have a workable customs and freight plan.

For a first small order, predictability often matters more than the lowest theoretical freight rate. A slightly higher all-in quote with clear exceptions can be the better commercial choice.

Key takeaway: Compare incoterms as service scopes, not magic discounts. The right option is the one whose total cost and responsibility map are understood by both sides.

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