Free shipping

In B2B cross-border trade, 'Free Shipping' is rarely truly free; it is typically factored into the unit price (CIF or DDP terms). Buyers should request a price breakdown comparing EXW (Ex-Works) and CIF (Cost, Insurance, and Freight) to determine the actual logistics cost. Ensure the supplier specifies the shipping mode (Sea, Air, or Express) and the estimated transit time, as 'free' options may utilize slower, consolidated shipping methods to save costs.

Even if shipping is included, the buyer or supplier must ensure all Commercial Invoices, Packing Lists, and Certificates of Origin are accurate to avoid customs delays. For U.S. markets, verify ISF (Importer Security Filing) responsibilities. For EU markets, ensure VAT and EORI numbers are correctly handled. Always confirm if the 'Free Shipping' includes Customs Clearance and Duties (DDP) or only delivery to the port (CIF/CFR).

Suppliers usually offer free shipping only when the Minimum Order Quantity (MOQ) reaches a threshold where the profit margin covers the freight. For small parcels, suppliers may use e-Packet or postal services, while bulk orders may require LCL (Less than Container Load). Buyers should calculate the Total Cost of Ownership (TCO) to see if increasing the order volume to trigger 'Free Shipping' actually reduces the landed cost per unit.

The primary risk is hidden costs at the destination port, such as terminal handling charges (THC) or storage fees, if the supplier only paid for freight to the port (CIF). Another risk is lack of insurance; buyers should verify if the shipment is covered by Marine Insurance (at least 110% of the CIF value). Always use Made-in-China.com's Secured Trading Service to ensure funds are only released after proof of shipment is provided.

Buyers should leverage long-term procurement forecasts to negotiate annual shipping rebates. If the supplier's 'Free Shipping' quote is too high, suggest using a third-party freight forwarder to compare rates. On Made-in-China.com, look for Audited Suppliers who have verified logistics capabilities and can provide real-time tracking numbers immediately after dispatch.

Clearly define the Transfer of Risk in the contract. Under DDP terms, the supplier is responsible until the goods reach your warehouse. Always perform a pre-shipment inspection (PSI) and take photos/videos upon arrival. If damage occurs, file a claim within 7 days and ensure all communication is kept within the official platform messaging system for evidence in case of mediation.