If you've browsed wholesale suppliers, you've almost certainly seen the abbreviation EXW on a quote. It stands for Ex Works — the most common shipping term for wholesale orders worldwide. Understanding EXW before you commit saves time, headaches, and unexpected freight bills.
What EXW means, in one sentence
Under an EXW agreement, the seller makes the goods available at their premises, and the buyer is responsible for every logistics step from that point forward — loading, transport, export paperwork, customs clearance at destination, and final delivery.
EXW is one of the eleven Incoterms 2020 rules published by the International Chamber of Commerce. The rules standardize responsibility between buyer and seller so contracts don't have to re-litigate the basics.
Who pays for what
| Cost | Seller pays | Buyer pays |
|---|---|---|
| Manufacture, pack, label | ✓ | |
| Make goods available at warehouse | ✓ | |
| Load onto buyer's vehicle | ✓ | |
| Export paperwork | ✓ | |
| Freight to destination country | ✓ | |
| Import duties & customs | ✓ | |
| Final-mile delivery | ✓ |
When risk transfers
Under EXW, risk of loss or damage passes to the buyer the moment the goods are collected from the seller's premises. If the truck the buyer hired crashes on the way to the port, that's the buyer's problem (and why most buyers insure the shipment).
This contrasts with terms like DDP (Delivered Duty Paid), where the seller handles everything all the way to the buyer's door. DDP is convenient for the buyer but far more expensive — the seller prices in freight, insurance, duty, and risk.
When EXW is the right choice
- You have a freight forwarder. Buyers with an established logistics provider almost always get better freight rates than the seller would, so EXW is cheaper overall.
- You want control. Your forwarder routes the goods however you prefer — consolidation with other shipments, specific carriers, specific ports.
- You're buying from multiple suppliers in the same region. Your forwarder can consolidate EXW pickups into one ocean container, which dramatically lowers per-unit freight cost.
When EXW is not the right choice
- You've never handled international freight. First-time importers are usually better off with FOB or CIF terms that include at least partial seller-side handling.
- Small orders. On orders under a pallet, the overhead of arranging your own pickup can exceed the savings. Courier-based DAP or DDP terms may cost less in total.
- Time-sensitive goods. Under EXW, every delay in your logistics pipeline is your delay. If the goods need to hit a deadline, factor in extra buffer.
AJ Tech's wholesale terms
All AJ Tech wholesale orders ship EXW Dallas, Texas (Incoterms 2020). We make the goods available at our Dallas facility, and your carrier or freight forwarder handles pickup, export, and final delivery. Full terms are in our Wholesale (B2B) Policy. To start a wholesale relationship, complete the Wholesale Client Onboarding form — our B2B team responds within two business days.