Once a brand approves its capsule formula, the next question is commercial rather than technical: who owns the goods at each stage of the journey, and who pays for what. Incoterms answer exactly that. They define the point where cost, risk, plus paperwork move from the seller to the buyer, which is why two factories quoting the same unit price can deliver very different invoices.
Capsule skincare has an unusual freight profile. Soft capsules are compact, shelf-stable, and light, so air freight often stays viable even on repeat orders. At the same time, the shells are sensitive to sustained heat and humidity, which means the route matters as much as the price. High value density also means freight is rarely the largest line in your landed cost, while duties, clearance, plus last-mile handling can quietly outweigh it.
Our factory fills soft capsules for facial serum oils, eye serums, hair oils, body lotions, creams, and masks, with a choice of 100% plant-based shells or food-grade gelatin. Here is how to read the terms buyers ask about most.
What Each Term Actually TransfersEvery Incoterm is a handover point. Before that point the seller carries the risk; after it, you do.
- FOB: risk moves when goods are loaded on board at the port of departure
- CIF: we also book freight plus insurance to your destination port, yet risk still moves at loading
- DAP: we deliver to your named address, with import duty still yours
- DDP: we clear import, pay duty, then deliver to the named place
Most buyers start here. You appoint the forwarder, see the real freight quote, and keep control of routing plus insurance. It also lets you consolidate capsule shipments with other suppliers. The trade-off is administrative: you need a customs broker at the destination port before the container sails. On a first order, that visibility is usually worth the extra paperwork.
CIF: Convenience With a CaveatCIF looks identical to FOB on an invoice, only with freight folded in, which is precisely where confusion starts. Risk still transfers at the loading port, so if the vessel is damaged you claim on your own policy rather than ours. The cover we arrange is the minimum the term requires. If your fill is temperature-sensitive, upgrade the policy or choose a term that keeps risk with us for longer.
DDP: One Invoice, Less VisibilityDDP is the simplest to budget because duty appears inside the price. It suits small, urgent air shipments where appointing a broker abroad is not worth the effort. It also means you stop seeing the duty rate applied to your goods. Note that no Incoterm shifts regulatory duty. Facility registration, product listing, plus the Responsible Person role stay with your brand whichever term you sign.
Compare Quotes on the Same BasisA quoted unit price means little until you know its Incoterm. Ask every factory for FOB port of departure, then convert each offer to landed cost using your own freight plus duty estimates.
- Ask for the exact handover point, not only the term name
- Request stability plus shipping validation data for warm routes
- Confirm who arranges insurance and at what declared value
- Check whether export documentation fees sit inside the quote
Tell us your destination market, projected order volume, plus target landed cost. We will map formulation options, capsule shell type, carton configuration, plus a shipping plan built around how the goods will actually travel. Single-dose sealing, light protection, no preservatives, precise fill weight, plus hygienic portability come standard across the line.