What is Incoterms in Retail? Explained

Incoterms, short for International Commercial Terms, are standardized terms defined by the International Chamber of Commerce (ICC). Incoterms outline the responsibilities, risks, and costs associated with the transportation and delivery of goods between a seller and a buyer. These terms, such as FOB (Free On Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works), clarify crucial aspects of the transaction, including the point of delivery, payment obligations, and the transfer of risk. Understanding Incoterms is essential for retailers engaged in global trade to ensure clarity and consistency in international transactions.