The international rules defining buyer and seller responsibilities in trade — who pays freight, insurance, and risk at each point.
How to apply incoterms
- Choose Incoterms deliberately per shipment
- Align them with your cost model
- Document them in every contract
The #1 mistake to avoid
Letting the supplier choose terms that shift cost to you.
The metric that matters
Frequently asked questions
What is incoterms?
The international rules defining buyer and seller responsibilities in trade — who pays freight, insurance, and risk at each point.
Why does incoterms matter for my business?
Because it directly affects how well your business performs — get it wrong and it costs you in measurable ways. Done right, it becomes a competitive advantage.
How do I apply incoterms?
Start with the practical steps: Choose Incoterms deliberately per shipment; Align them with your cost model; Document them in every contract. The key is to start small, measure, and expand what works.
What is the most common mistake with incoterms?
Letting the supplier choose terms that shift cost to you.
IDAP Trade Division
This glossary entry is maintained by the IDAP Trade division — specialists who deliver this capability on demand to businesses worldwide.