Describes a circumstance where the seller is responsible for getting the goods prepared at their place of business. On the other hand, the seller isn’t liable for the transport expenses and threats; the buyer is responsible for transport arrangements.

Ex-works (EXW) is a global trade term by which a seller creates a product available at a predetermined place, and the customer must pay for the transportation costs. This is one of the 11 incoterms, A set of standardized global trade terms which are approved, registered and published by the International Chamber of Commerce.

This rule puts a minimum obligation on the seller, who only must make the products available, well packaged, at the specified location, generally the seller’s factory or depot. The customer is responsible for loading the products on a vehicle (though the seller might be better placed to do so ); for export procedures; for onward transportation and all costs arising following collection of the merchandise.

Ex Works (EXW) is an international trade term that is used to describe a type of trade agreement between a buyer and a seller. Under an EXW agreement, the seller is responsible for making the goods available at their place of business, and the buyer is responsible for arranging and paying for the transportation of the goods from the seller’s place of business to the destination.

In the context of Amazon and other online marketplaces, EXW is a common trade agreement that is used when a seller is shipping goods directly to a buyer, rather than using a fulfillment center or other third-party logistics provider. Under an EXW agreement, the seller is responsible for making the goods available for pickup or delivery at their place of business, and the buyer is responsible for arranging and paying for the transportation of the goods from the seller’s place of business to the destination.

There are a few key advantages and disadvantages of using an EXW agreement in the context of Amazon and other online marketplaces. Some of the advantages include:

• Cost savings: One of the main advantages of using an EXW agreement is the potential cost savings. Because the seller is not responsible for arranging and paying for the transportation of the goods, the buyer may be able to negotiate a lower price for the goods. This can be especially beneficial for buyers who are able to arrange their own transportation or who are able to negotiate a favorable rate with a third-party logistics provider.
• Flexibility: Another advantage of using an EXW agreement is the flexibility it offers. Because the seller is not responsible for arranging the transportation of the goods, the buyer has the freedom to choose the transportation method that best meets their needs. This can be especially beneficial for buyers who need to meet specific time or delivery requirements.

There are also a few disadvantages of using an EXW agreement in the context of Amazon and other online marketplaces. Some of the disadvantages include:

• Risk: One of the main disadvantages of using an EXW agreement is the risk that is associated with the transportation of the goods. Because the buyer is responsible for arranging and paying for the transportation of the goods, they are also responsible for any damages or losses that may occur during transportation. This can be a significant risk for buyers who are unable to negotiate favorable terms with a third-party logistics provider or who do not have the resources to adequately insure the goods during transportation.
• Complexity: Another disadvantage of using an EXW agreement is the complexity that can be involved in arranging the transportation of the goods. Because the buyer is responsible for arranging and paying for the transportation of the goods, they may need to coordinate with multiple parties, including the seller, the transportation provider, and any customs or import/export authorities. This can be a time-consuming and complex process that requires a significant amount of effort and expertise.

In summary, Ex Works (EXW) is an international trade term that is used to describe a type of trade agreement between a buyer and a seller. Under an EXW agreement, the seller is responsible for making the goods available at their place of business, and the buyer is responsible for arranging and paying for the transportation of the goods from the seller’s place of business to the destination. There are a few key advantages and disadvantages of using an EXW agreement in the context of Amazon and other online marketplaces, including cost savings and flexibility for the buyer, and risk and complexity for both the buyer and the seller. It is important for

buyers and sellers to carefully consider the advantages and disadvantages of using an EXW agreement when making decisions about the transportation and delivery of goods on Amazon and other online marketplaces.

In some cases, it may be more beneficial for the buyer to use a different trade agreement, such as FOB (Free on Board) or FCA (Free Carrier), which places more of the responsibility for the transportation and delivery of the goods on the seller. Alternatively, the buyer and seller may choose to use a fulfillment center or other third-party logistics provider to handle the transportation and delivery of the goods, which can help to mitigate some of the risks and complexities associated with an EXW agreement.

Ultimately, the decision about which trade agreement to use will depend on the specific needs and circumstances of the buyer and seller, and will be based on a variety of factors, including the cost of the goods, the transportation requirements, and the risks and responsibilities that each party is willing to take on. It is important for buyers and sellers to carefully consider these factors and to choose the trade agreement that best meets their needs and objectives.