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Q: What are the differences between DDP and FOB. which method is more convenient and less risky for us buyers?

18/12/2025 01:31:09 1    answers in: Other
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A

Hello! Regarding the choice between DDP and FOB, I will summarize it simply and clearly to help you make a decision:
If you choose DDP, you only pay a fixed total price. You don't need to worry about any processes or risks; you just wait for the goods to arrive at your door, check, and sign for them. The budget is fixed, with no hidden costs. You can maximize savings, ensure a fixed total cost, and transfer complexity and risk to the supplier's customer.
If you choose FOB, theoretically, it gives you more control, the potential to find lower shipping costs, and you have a strong and reliable local team or long-term freight forwarder in the destination country that can efficiently handle customs clearance and logistics. The primary goal is to pursue the theoretically lowest total procurement cost. However, you need to bear the risks of sea freight delays and increased costs at the destination port.
It all depends on which aspect you value more. If your primary goal is "peace of mind, certainty, and no surprises," then DDP is a better and more reliable choice.

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