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Incoterms 2026 for Furniture Importers: EXW, FOB, CIF vs DDP Explained
Why Shipping Terms Decide Your Real Margin
Two importers can buy the same compressed sofa at the same FOB price and land it at very different costs — the difference is Incoterms and the hidden charges nobody quotes. For compressed furniture, where freight per unit is already tiny, choosing the right term can matter more than the product price.
The Four Terms You'll Actually Use
| Term | You Handle | Factory Handles | Risk Transfers |
|---|---|---|---|
| EXW | Everything from factory gate: trucking, export, ocean, customs | Goods ready at factory | At factory gate |
| FOB | Ocean freight, insurance, destination customs | Domestic trucking + export clearance + loading | On board vessel |
| CIF | Destination customs, inland haulage | Freight + insurance to destination port | On board vessel |
| DDP | Almost nothing — delivery to your door | Everything incl. import duty & VAT | At your delivery address |
Real Cost Example (40ft Container, Compressed Sofas, Shanghai→Rotterdam)
| Item | FOB | DDP |
|---|---|---|
| FOB price | $131/unit | $131/unit |
| Ocean freight | +$11 | included |
| Insurance | +$0.50 | included |
| Import duty & VAT | +$9 (your side) | included |
| Inland + customs clearance | +$3 | included |
| Total landed | $154.50 | $162-167 (all-in) |
The DDP premium typically runs 5-8% over the FOB landed cost ($154.50 = FOB + ocean freight + insurance + duty/VAT + clearance) — roughly $162-167 per unit all-in. Worth it for first-time importers who want one predictable number.
Compressed-Furniture-Specific Notes
- Freight is billed on volume weight — compression shrinks the bill 60-75%. Always get the compressed dimensions in the quote.
- Vacuum-sealed units can be refused at destination customs if the film is punctured — check who carries that risk under your term (CIF does not cover it).
- For DDP, make sure the factory has a reliable customs broker at YOUR port — ask for a reference, not a promise.
About the Author
This guide was written by the YiChuHome Editorial Team — a Foshan-based OEM manufacturer exporting vacuum compressed sofas to 20+ countries. Our export desk quotes EXW, FOB, CIF and DDP daily. Published: 2026-08-24 | Category: Logistics & Incoterms | Get a transparent FOB-to-DDP cost breakdown for your market.
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