Incoterms are commonly used terms of sale, especially in international shipments. There are 11 internationally recognised Incoterms which define the responsibility of the the seller and buyer, specifically with relation to payments incurred for shipments as well as the ownership of the stock in trade.
Rather than explaining the Incoterms and what it means for global marketplaces, here’s an article from Trade.gov which does a great job in explaining the details.
Omnyfy has implemented Incoterms in our RFQ module to support global marketplaces enabling Vendors who respond to RFQ requests to now select the Incoterm relating to the quote, and also to set a fixed shipping price for the quote, which is treated separately to the cost of the products in the quote.
Benefits of this feature
- Vendors can now set a fixed shipping price for the Quote
- Vendors can set the Incoterm specific to their Quote
- Customers view and pay for the shipments as a separate line item
- The Shipping Fee is treated different in Marketplace Commercials Management and can now be transferred to the Vendor or withheld by the Marketplace Owner, depending on who is fulfilling the shipment.
- Enables Marketplace Owners to run marketplaces where they provide fulfilment services to their Vendors.