CIF (Cost, Insurance and Freight)
Supplier pays freight and insurance to the destination port; risk still passes at origin.
Definition
CIF (Cost, Insurance and Freight) is an Incoterm where your supplier pays the cost, ocean freight, and minimum insurance to bring goods to the named destination port, yet risk still passes to you when the goods are loaded at the origin port. So the supplier arranges and pays the main sea leg while you carry the in-transit risk and handle import.
How CIF differs from FOB
CIF and FOB share the same risk-transfer point, the goods being loaded at the origin port, but under CIF the supplier also pays freight plus minimum insurance to the destination port. You trade control of the ocean leg for a single, simpler quote.
Why experienced sellers usually prefer FOB over CIF
CIF has a genuinely counterintuitive split: your supplier pays the freight bill, but you carry the in-transit risk, so if the ship sinks you file the claim even though they wrote the freight check. On top of that you lose control over the carrier they book, the insurance is only minimum cover, and you (not the supplier) still clear customs and pay duties at the destination. The practical rule: unless your supplier will only quote CIF, ask for FOB so you control the carrier and the routing to fulfillment.
What CIF means for your landed cost
The CIF price includes freight to the destination port but not duties, destination handling, or delivery to FBA, so it still understates your true landed cost. Break it down before treating a CIF quote as your real per-unit cost.
Related terms
See your real cost past the port
Inventory Hero tracks freight, duty, and handling on top of a CIF price, so your margins reflect the full delivered cost, not just the supplier's quote to the destination port.
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