Incoterms (short for International Commercial Terms) are simple, globally-accepted three-letter rules that spell out who pays, who takes the risk, and who handles what paperwork in an international shipment. These rules keep things clear and they come printed on every commercial invoice to avoid surprises.
Why Swotzy Customers Should Care
Think of Incoterms as the GPS for global shipping. They:
- Clearly define costs, risks, and responsibilities,
- Help avoid delays and extra fees,
- Bring confidence when shipping cross-border.
By using the right Incoterm, you protect both your wallet and your reputation. 😎
The Top 3 Most Popular Incoterms
| Incoterm | Sellers responsibilities and tasks | To whom risks transfers |
| EXW – Ex Works (piegāde no rūpnīcas) | Buyer assumes almost all costs and risk throughout the shipping process. Seller’s only job is making sure the buyer can access the goods. Once the buyer has access, it’s all down to them (including loading the goods). | Risk transfers from seller to buyer: At the seller’s warehouse, offices or wherever the goods are being collected from. |
| DAP – Delivered At Place | Seller covers the costs and risk of transporting goods to an agreed address. Goods are classed as delivered when they’re at the address and ready to be unloaded. *If the buyer does not settle in time, the import obligations can be transferred to the shipper (Fedex and UPS). | Risk transfers from seller to buyer: When goods are ready for unloading at the agreed address. |
| DDP – Delivered Duty Paid | Seller takes almost all responsibility throughout the shipping process. They cover all costs and risk of transporting goods to the agreed address. Seller also makes sure goods are ready for unloading, fulfils export and import responsibilities and pays any duties. | Risk transfers from seller to buyer: When goods are ready for unloading at the agreed address. |
Choose the Right One for You 📦
- Map out your supply chain – Who’s best at handling transport, insurance, and customs?
- Reduce hand-offs – Fewer parties mean fewer surprises.
- Mind the paperwork – If customs are tricky, lean on DAP or DDP.
- Set expectations early – Agree on the Incoterm before quoting a price.
- Lean on Swotzy – Got questions? Our support team is here to guide you to the best fit.
Final Thoughts 🎉
Incoterms aren’t just legal jargon—they’re your shipping GPS. Choosing the right term helps you:
- Lock in costs and risks,
- Protect your margins,
- Keep customers smiling.
Let Swotzy handle the logistics, so you can focus on what you do best—growing your business. Ready to ship smarter? Let's go! 📦💨
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