Which incoterm is suitable for FBA?
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Use an incoterm which will create no billing to Amazon – you will pay for all the fees including delivery. The DDP (Delivered Duties Paid) incoterm is the most common, and will be the one suggested – it also costs more than average. With this term, the shipper (you) will pay for the entirety of freight travel, duties payment, and customs clearance.
A better option, one that we recommend using, is to ask for EXW (Ex-Works) or FOB (Free on Board) incoterms. These incoterms allow you to take responsibility for payment and still find the best price. Amazon will not be billed (which is what they require), and the shipper saves by using a better priced incoterm.
Remember, Amazon will not act as an Importer of Record for any shipper. This means the shipper is responsible for following international and US shipping rules and regulations. The shipper will always be responsible for any costs and risks that come with shipping.