Decoding Incoterms for Apparel: Who Pays for Shipping and Insurance?

Decoding Incoterms for Apparel: Who Pays for Shipping and Insurance?

Understanding Decoding Incoterms for Apparel is the most crucial step in managing supply chain costs and risk, directly answering the question of who pays for shipping, insurance, and duties. These standardized International Commercial Terms (Incoterms) define the point at which the responsibility for the goods transfers from the seller (manufacturer) to the buyer (your brand). Selecting the right Incoterm can significantly reduce your Cost of Goods Sold (COGS) and prevent catastrophic financial loss from damaged or lost shipments destined for the UK or US.

Phase 1: Understanding the Foundation of Incoterms