EXW vs FOB vs landed cost for plastic packaging.
A factory unit price and a delivered cost answer different questions. Normalize the product and shipping scope before choosing a supplier.
The decision in plain English.
EXW generally places pickup and export movement with the buyer from the factory. FOB generally includes delivery and export handling to the named origin port under the agreed scope. Landed cost extends the comparison through freight, insurance when used, import charges and delivery to the buyer's location. The named place, Incoterms version and written inclusions must be stated.
Build the comparison in layers
Responsibility depends on the written contract. Use this as a worksheet structure, not as a substitute for your freight forwarder's or customs broker's advice.
| Cost layer | Questions to ask | Common omission risk |
|---|---|---|
| Product and export packing | Are the bottle, closure, decoration, assembly, cartons and dividers included? | Quotes may cover different component or packing scopes |
| Origin movement | Who handles factory pickup, export documents, origin terminal and port delivery? | EXW and FOB totals are often compared without adding the missing origin work |
| International freight | What mode, route, shipment size, validity period and insurance assumption are used? | A temporary freight estimate can be mistaken for a fixed delivered price |
| U.S. import and delivery | Who is importer of record, and who pays duty, broker, port, examination and final delivery charges? | Duty and destination charges may not be included in a supplier's freight estimate |
Start with an identical packaging assembly.
Before discussing freight, confirm that each supplier is pricing the same bottle, resin, weight, closure, decoration, assembly and export packing. Carton quantity, dividers, protective bags and pallet requirements affect both product cost and freight volume.
Record the quotation date, currency, quantity and validity period. Resin, component and freight assumptions can change, so a landed-cost worksheet needs a date and source for every estimate.
EXW or FOB is incomplete without a location.
The quotation should state the named factory or origin port and the Incoterms version being used. Ask the supplier and freight forwarder to identify exactly which pickup, document, terminal and loading charges are included.
Do not assume two FOB quotes contain identical local charges. The practical comparison is the total amount for the same responsibility boundary, supported by written line items.
Send the package you are trying to source.
Start with a photo, drawing or current component plus the approximate quantity. We will identify the missing specifications before factory pricing.
Carton dimensions can change the winning quote.
Plastic packaging is often light relative to its volume. Freight planning therefore needs carton dimensions, gross weight, units per carton, total cartons and palletization assumptions. A small difference in bottle nesting or carton quantity can materially change shipment volume.
Ask for both the estimated first-order shipment and the repeat-order pattern. Air samples, a partial shipment and a full ocean shipment should not be blended into one unit-cost assumption.
Use a broker for the final landed estimate.
Provide the product description, material, intended use, country of origin and proposed classification to a qualified customs broker. The broker can help confirm duty treatment, entry requirements and the fees that belong in the estimate.
Keep duties, broker fees, port or examination charges, domestic delivery and contingency visible as separate lines. BottleMarkets can coordinate factory and packing data, but customs classification and final import responsibility should be confirmed by the buyer and its appointed professionals.
What to request for a landed-cost comparison
Use the same worksheet for every candidate supplier.
- Complete component and decoration scope
- Units per carton, carton dimensions and gross weight
- Named EXW or FOB location and Incoterms version
- Origin charges and export-document responsibility
- Freight mode, route, quote validity and destination ZIP code
- Broker-confirmed duty and destination cost assumptions
Compare a package the factory can actually make.
BottleMarkets helps U.S. buyers organize the specification, coordinate samples and request production pricing from qualified manufacturing partners.