Comparing FOB vs EXW for Lingerie Exports China
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So you're thinking about importing lingerie from China — smart move. The market’s booming, with China producing over 60% of the world’s lingerie and generating $28 billion in annual apparel exports (Statista, 2023). But here's the catch: choosing the right shipping term can make or break your profit margin. Let’s break down the real difference between FOB vs EXW — not just textbook definitions, but how they actually impact your bottom line.
What Do FOB and EXW Actually Mean?
EXW (Ex-Works) means you take full control (and risk) the moment goods leave the supplier’s factory. You arrange pickup, handle export customs, pay freight, insurance — everything. It’s like buying a car “as-is” from someone’s driveway.
FOB (Free On Board), usually FOB Shanghai or FOB Guangzhou, means the supplier delivers the goods to the port, clears them for export, and loads them onto the ship. Once that happens? The risk shifts to you. Think of it as a dealer handling paperwork before you drive off the lot.
Which One Saves You More Money?
The answer? It depends on your experience and volume. New importers often assume EXW is cheaper — but that’s a myth. Here’s why:
| Cost Factor | EXW | FOB |
|---|---|---|
| Supplier Responsibility | Factory only | Factory + export clearance |
| Freight Control | You book & pay | You choose forwarder |
| Customs Handling | Your agent | Supplier’s agent |
| Hidden Costs Risk | High (e.g., trucking, docs) | Low |
| Best For | Experienced importers | Beginners & mid-level |
From my 7 years in sourcing lingerie, I’ve seen over 40% of first-time buyers lose money under EXW because they didn’t factor in local hauling or documentation delays.
When Should You Use EXW?
Only if you have:
- A trusted freight forwarder in China
- Strong negotiation power with logistics providers
- Large order volumes (500+ units per SKU)
Otherwise, FOB is your safety net. Plus, most reputable lingerie exporters in China prefer FOB — it reduces disputes and builds trust.
Real-World Example: 1,000 Bras Shipment
Let’s say you’re shipping 1,000 lace bras from Guangzhou to Los Angeles:
- EXW Price: $5/unit = $5,000
- Extra Costs: ~$1,200 (trucking, export docs, port fees)
- Total Landed Cost: ~$6,200
Same order under FOB:
- FOB Price: $5.80/unit = $5,800
- No hidden fees — all-inclusive up to ocean freight loading
Wait — FOB looks more expensive, right? But when you add EXW extras, FOB saves you $400 and headaches.
The Bottom Line
If you're new to importing lingerie from China, skip EXW. Go with FOB. It’s transparent, predictable, and widely used by top brands. Save EXW for when you’ve built supply chain muscle.