Ex works EXW is a term used by Amazon sellers and other global sellers who choose to have the financial responsibility for package delivery and shipping placed on the customer. Under the EXW agreement, a seller finances and delivers the order to the customer's door. The cost of shipping is then borne by the buyer.
The main benefits of using the EXW shipping option are that the seller does not have to deal with any packaging or logistics, and buyers can save money by paying for delivery instead of buying items online and having them shipped.
When a seller selects the EXW shipping option, it is important to ensure that all of the necessary details are included in the listing. These include specifying a delivery location and date, as well as including contact information for both buyer and seller.
If any of these details change after an order has been placed, buyers need to be notified immediately so that they can adjust their shipping arrangements. Sellers who have questions about using the EXW shipping option on Amazon or any other global marketplace, please reach out to your seller account team using the Seller Central dashboard.
There are a wide variety of benefits for Amazon sellers who choose Ex works shipping. The following are examples.
1. Reduced freight costs - Shipping costs can be exponentially high. Having the customer pay for shipping can drastically reduce costs for sellers.
2. Increased production efficiency - Placing the responsibility of shipping on the customer gives sellers more free time to increase production efficiency and spend less time on buying shipping.
3. Elimination of customs and duties - Buyers are responsible for paying all associated shipping and transport costs. This includes - customs, duties, packaging fees, freight fees and all other associated costs agreed upon between the buyer and seller.
There may be some disadvantages for sellers who choose Ex Works shipping. The following are examples.
1. Increased customer wait times - If the buyer does not receive the product within the specified timeframe, they may contact Amazon to ask for a replacement or a refund. This can increase customer wait times and lead to decreased sales volumes.
2. Risk of lost packages - When using Ex works shipping, it is important that both buyers and sellers are aware of any changes in delivery date or location as these could lead to a package being left at an incorrect address or lost in transit altogether.
Sellers can browse the available products and choose the one they would like to sell. They will then enter in the required information, such as product description, price, shipping time, and payment method details. After completing this step, they will need to create a listing ad and await sales inquiries from buyers.
The terms and conditions for the customer to assume responsibility for transport and shipping costs are included in seller product listings. Buyers and sellers can communicate about shipping costs and requirements using Seller Central.
Amazon doesn't limit the use of Ex works shipping to medium and large businesses. Ex works can be used by small businesses or individual sellers.
If the seller needs to make any changes to their shipping details after submitting their ex works order, they should contact Amazon and request a modification. After making these modifications, sellers will need to resubmit their original ex works order in order for it to be approved. Overall, ex works shipping is a convenient and affordable way for buyers and sellers to transact business. However, there are some risks involved that must be taken into account when setting up an order. If you're looking to use ex works shipping, be sure to review the guidelines provided above before beginning your listing ad.