Ex Works (EXW) Shipping Explained: The 2025 Guide for U.S. & EU Importers
EXW shipping—short for Ex Works Incoterms—is one of the most commonly used terms in international trade. It defines a shipping arrangement where the seller makes goods available at their factory, and the buyer covers all transportation costs and risks.
If you’ve ever seen an EXW price on Alibaba or wondered about the difference between EXW vs FOB, this guide explains everything: what Ex Works means, who pays for what, and how to manage EXW shipments safely when importing from China.
What Does Ex Works (EXW) Mean in Shipping?
Ex Works (EXW) means that the seller fulfills their responsibility once the goods are packaged and ready for pickup at their premises—typically a factory or warehouse.
From that moment, the buyer assumes full responsibility for every step of the journey:
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Loading the goods onto the first truck
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Arranging export clearance
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Booking main freight (sea or air)
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Paying insurance, import duties, and final delivery fees
EXW is one of the 11 Incoterms published by the International Chamber of Commerce (ICC) and represents the lowest seller obligation and highest buyer responsibility in global trade.
What Does an EXW Price Mean on Alibaba or Supplier Quotes?
An EXW price only includes the product itself—packed and ready for pickup. Everything else is your responsibility.
| Cost Component | Paid by Seller | Paid by Buyer |
|---|---|---|
| Product cost and packaging | ✅ | |
| Factory loading | ✅ | |
| Inland trucking | ✅ | |
| Export customs clearance | ✅ | |
| International freight (sea/air) | ✅ | |
| Insurance | ✅ | |
| Import duties and taxes | ✅ | |
| Final delivery | ✅ |
When you see “EXW Shenzhen” or “EXW Yiwu” on a quote, it means the supplier’s price ends at the factory gate. The buyer must arrange everything from pickup to customs clearance in both countries.
Zbao Insight: Always confirm whether your supplier includes loading fees in the EXW price. Some factories charge extra to place goods onto the truck.
Who Pays Shipping Under EXW Terms?
Under Ex Works, the buyer pays all shipping costs—from the first truck at the factory to the final delivery at your warehouse.
That includes:
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Loading charges
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Inland trucking
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Export clearance and documentation
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Main freight (sea or air)
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Insurance
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Destination port handling fees
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Import customs duties and VAT
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Final delivery or courier to your warehouse
This makes EXW cost-effective only when you have a reliable logistics partner in China who can handle these services on your behalf.
Advantages and Disadvantages of EXW Shipping
| Advantages | Disadvantages |
|---|---|
| Full control over your logistics chain | Buyer assumes all costs and risks |
| Ideal for consolidating goods from multiple suppliers | Complex documentation and customs processes |
| Protects supplier identity (white-label sourcing) | Factories may not have export licenses |
| Often cheapest supplier quote | Hidden inland costs if not budgeted properly |
| Flexible for experienced importers | Not suitable for beginners without local support |
Zbao Tip: If your supplier doesn’t have an export license, your forwarder must handle customs filing under their own export authority. Otherwise, your shipment could be held at customs in China.
EXW vs FOB — What’s the Difference?
The main difference between EXW and FOB lies in where responsibility transfers from the seller to the buyer.
| Term | Transfer Point | Export Clearance | Buyer’s Workload | Best Use Case |
|---|---|---|---|---|
| EXW (Ex Works) | Seller’s factory | Buyer | High | Multi-supplier consolidation |
| FOB (Free on Board) | Port of loading | Seller | Moderate | Single large shipment exports |
Under FOB, the seller handles transportation to the port and export clearance. Under EXW, the buyer must handle everything starting from the factory gate.
Learn more in our FOB Incoterms Guide.
When Should You Use EXW Shipping?
You should consider EXW when:
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You’re buying from multiple factories and want to consolidate goods before shipping.
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Your supplier lacks export rights, and you rely on a freight forwarder for export clearance.
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You want maximum control over your carrier, cost, and schedule.
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You’re an experienced importer or Amazon FBA seller with a trusted forwarder.
Real Example:
One of our U.S. clients purchased goods from five Yiwu factories under EXW terms. Zbao Logistics consolidated all goods, managed export customs, and shipped DDP to Amazon ONT8. The total shipping cost dropped by 22% compared to separate pickups.
How Zbao Logistics Makes EXW Shipping Simple
As a certified Amazon SPN and FMC-licensed NVOCC, Zbao Logistics provides full-service support for EXW shipments from China to the USA and Europe.
Here’s how we simplify your operations:
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Local Factory Pickup – We collect goods from any Chinese factory (Shenzhen, Ningbo, Yiwu, Guangzhou, Shanghai).
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Export Clearance Management – Even if your supplier cannot export, we file all required documentation under our license.
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Consolidation & Optimization – We combine multiple suppliers’ goods into one LCL/FCL shipment to save cost.
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Transparent Pricing – One all-in quotation from pickup to final delivery—no hidden fees.
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Real-Time Tracking – Monitor your shipment via our online logistics portal 24/7.
(Learn more in our China to USA Freight Forwarding Guide or our Amazon FBA Shipping Service.)
Practical Tips for Managing EXW Shipments from China
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Verify Export Ability: Check if your supplier can legally export goods.
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Request Detailed Measurements: Always get weight and dimension sheets for shipping accuracy.
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Plan for Hidden Costs: Include inland trucking, export customs, and loading in your budget.
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Compare EXW vs DDP: Sometimes DDP offers a safer, all-inclusive cost for new importers.
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Partner with an Expert: A forwarder like Zbao Logistics can manage every step on your behalf.
FAQs About EXW Shipping
1. What does EXW mean in shipping?
EXW (Ex Works) means the seller makes goods available at their factory, and the buyer covers all transport, customs, and delivery costs.
2. Who pays for shipping under EXW?
The buyer pays for all transportation—from pickup at the factory to delivery at the destination warehouse.
3. Does EXW include export or import customs?
No. Under EXW, the buyer is responsible for both export and import customs clearance.
4. What’s better, EXW or FOB?
FOB is usually easier for new importers because the seller handles export procedures. EXW gives more control but requires local logistics expertise.
5. Can Zbao Logistics handle EXW shipments for me?
Yes. We provide factory pickup, export documentation, sea or air freight, customs clearance, and delivery to your door or Amazon FBA warehouse.
Conclusion
EXW shipping gives importers total control—but also total responsibility. For experienced U.S. and European buyers, it’s an efficient way to manage costs and maintain transparency.
With Zbao Logistics, you don’t have to face EXW’s complexity alone. Our on-ground teams in China handle pickup, export, freight, and customs so you can focus on your business—not logistics problems.
Ready to streamline your next EXW shipment from China?
Contact Zbao Logistics today for a free consultation and quotation.
