Supplier quotes often look similar on price, but the real differences hide in delivery terms. Two suppliers quoting the same product may use different Incoterms, shifting thousands of dollars in freight, duties, and risk between buyer and supplier. Without asking the right questions, a lower quote can become a more expensive order once responsibilities are sorted out. This guide walks through the Incoterms questions that matter at the quotation stage, so buyers can compare offers with a clear working method and a visible record.

Confirm the Exact Incoterm Quoted

The first question a buyer should ask is which Incoterm the supplier used in their quote. A supplier may write FOB, EXW, or DAP without specifying the version year, and the differences between editions can change obligations. Confirming the exact term and the published year removes ambiguity before any comparison begins.

Once the term is confirmed, the buyer should check whether the supplier applied it consistently across all line items. Mixing terms within one quote, such as FOB for one product and EXW for another, makes side-by-side evaluation difficult. A single, clearly stated term per quote keeps the comparison fair and the record clean.

• Ask for the full Incoterm name and the version year (for example, FOB Shanghai 2020)
• Request that one term apply to all items in the quote
• Flag any quote that omits the term entirely

Identify the Named Place of Delivery

Every Incoterm includes a named place, and that place defines where risk and costs shift. A quote listed as FOB Shanghai means something different from FOB Ningbo, because the supplier's inland haul and terminal fees change. Buyers should record the exact named place and confirm it matches the supplier's shipping location.

The named place also affects documentation. Some terms require the supplier to handle export clearance, while others leave that to the buyer. Knowing where the handover happens helps the buyer plan customs, freight, and insurance steps before cargo moves.

• Write down the full named place exactly as quoted
• Verify the place matches the supplier's actual loading or delivery location
• Note whether the place is a port, airport, terminal, or inland address

Compare Who Pays for Main Transportation

Under most Incoterms, the party responsible for the main carriage pays for it, but the split varies. In FOB, the buyer books and pays for ocean freight, while in FCA or DAP, the supplier may arrange and charge for transport. Buyers should ask who books the main shipment and who pays the freight invoice.

Freight costs can swing widely between quotes, so the buyer should request a breakdown of transportation charges. A supplier who includes freight in the product price may look competitive, but only if the total cost stays below a buyer-arranged shipment. Comparing who pays what keeps the total landed cost visible.

• Ask who arranges and pays for the main carriage
• Request a separate line for freight charges when possible
• Compare total transportation cost, more than the product price

Clarify Risk Transfer Points

Risk transfer determines when loss or damage shifts from supplier to buyer, and it usually happens at a specific point in the journey. In EXW, risk passes when the goods are made available at the supplier's premises, while in FOB it passes when the cargo is loaded onto the vessel. Buyers should confirm the exact moment risk transfers for each quote.

Knowing the risk point affects insurance and claims handling. If a buyer arranges transport under FOB, they may need cargo insurance from the port onward. If the supplier handles delivery under DAP, the buyer should understand what protection, if any, covers the goods until the named place.

• Confirm the exact event that triggers risk transfer
• Ask what insurance coverage, if any, applies before and after that point
• Document the risk transfer point in the comparison sheet

Review Export and Import Responsibilities

Some Incoterms require the supplier to handle export clearance, while others leave it to the buyer. Under EXW, the buyer typically manages export and import procedures, which can delay shipments if the buyer is unprepared. Buyers should ask who files export documents and who pays any export fees or taxes.

Import clearance and duties usually fall on the buyer under most terms, but the buyer should confirm where and how customs entry happens. A supplier offering DDP may include duties and taxes, but the buyer should verify the calculation and the destination country's import rules before accepting that responsibility.

• Ask who handles export clearance and pays export fees
• Confirm who manages import clearance and pays duties or taxes
• Request details on any customs documentation the supplier provides

Document the Comparison for Decision Making

After gathering answers, the buyer should record each supplier's term, place, cost responsibilities, and risk points in a single comparison sheet. This sheet becomes the working method for evaluating quotes and the visible record for later decisions. Including a column for each supplier and a row for each question keeps the data organized.

The comparison sheet should also capture follow-up items, such as missing documentation or unclear cost breakdowns. When a supplier's answer changes during negotiation, the buyer should update the sheet and note the date. A clear record reduces misunderstandings and supports the next sourcing decision with evidence rather than memory.

• Create a comparison sheet with one row per Incoterms question
• Add a column for each supplier and a notes column for follow-ups
• Update the sheet whenever a supplier revises their terms or costs

Build a comparison sheet with one row per Incoterms question and one column per supplier before accepting any quote.