Ex Works (EXW) is an Incoterm under which the seller fulfills its obligation simply by making the goods available at its own premises, such as a factory, warehouse, or store. From that point the buyer takes on all costs and all risk, including loading the goods, arranging transport, handling export and import customs, and covering insurance. Of all the Incoterms, EXW places the maximum obligation on the buyer and the minimum on the seller.
How it works
The seller packages the goods and notifies the buyer that they are ready for collection at an agreed location. The buyer, or a freight forwarder acting for them, arranges pickup, export clearance, freight, duties, and delivery. Risk transfers to the buyer the moment the goods are placed at their disposal, even before loading. In practice, many sellers still help load the truck as a courtesy, but under a strict reading of EXW they are not required to, and any damage during loading is the buyer’s responsibility.
Why it matters
EXW gives the seller a clean, predictable position: one price, at their door, with no logistics to manage. That simplicity is why merchants new to exporting often quote EXW. The trade-off is that the buyer must be comfortable managing international shipping and customs, which not every buyer is. For cross-border deals, sellers sometimes shift to FCA or another term to smooth the customer experience.
Example
A US Shopify merchant quotes a pallet of goods to a European distributor at 5,000 USD Ex Works Ohio. The distributor books the carrier, clears US export and EU import, and pays freight and duty on top of the 5,000 USD.
When you build B2B quotes on Shopify, stating the Incoterm and named place on the quote itself keeps pricing unambiguous. See the B2B quoting glossary for related terms like FOB, CIF, and DDP.