Sourcing glossary
Incoterms
Also known as: International Commercial Terms
A set of eleven standard trade terms published by the International Chamber of Commerce that define which party pays for each part of a shipment and where risk transfers.
The current edition is Incoterms 2020. Always name the edition and the place in contracts, for example "FOB Ningbo Incoterms 2020". Incoterms do not define price, payment terms or transfer of ownership.
Related terms
Guides that use this term
Trade terms
EXW vs FOB vs DDP: Which Incoterm to Use When Buying from China
EXW, FOB and DDP compared for China imports: who pays each cost, where risk transfers, and which term suits first-time buyers vs experienced importers.
Updated 2026-09-26 · 3 min read
Trade terms
CIF vs FOB: Which Is Better When Importing from China?
CIF vs FOB under Incoterms 2020: who books freight, what CIF insurance really covers, where risk passes, and why CIF can cost more once goods reach your port.
Updated 2026-09-16 · 5 min read
Platforms
1688 vs Alibaba vs Taobao: Which Platform Should You Buy From?
1688, Alibaba.com and Taobao compared for overseas buyers: who each serves, language, MOQ, prices, payment, buyer protection and shipping abroad.
Updated 2026-09-09 · 5 min read
Part of Incoterms & Payment.