Ex-works pricing (EXW)

What is Ex-works pricing (EXW) and how does it affect international trade?

Ex-works pricing, abbreviated as EXW, is a term used in international trade and shipping that refers to the price of goods at the seller's location or factory. The price includes the cost of producing the goods but does not include any shipping, handling, or export duties. The buyer is responsible for all costs associated with transporting the goods from the seller's location to the final destination. This includes the cost of shipping, freight, insurance, and any import duties or taxes. For example, if a sneaker reseller in the United States purchases a bulk order of sneakers from a manufacturer in China with EXW pricing, the reseller is responsible for all costs associated with transporting the sneakers from the manufacturer's factory in China to their location in the United States. This includes the cost of freight, shipping, insurance, and any import duties or taxes. In the sneaker resell market, EXW pricing is commonly used when purchasing sneakers from international suppliers or manufacturers. For beginners in the sneaker resell market, it is important to fully understand the implications of EXW pricing and to carefully consider all the associated costs when calculating the total cost of acquiring sneakers. Additionally, it is important to have a clear agreement with the supplier on the terms of the transaction, and to consider the logistics and risks associated with international shipping.