Why the vocabulary matters
Trade terms are not ceremony; they are the boundary lines of a price. A figure quoted ex-factory includes a different set of obligations than the same figure quoted FOB, and a buyer who assumes otherwise discovers the difference as a surprise invoice at the port. The same is true downstream: a lead time quoted from confirmation means one thing, from sample approval another; a size run described loosely can hide a carton your channel cannot sell. None of this requires a trade degree. It requires that both sides attach the same meaning to a short list of words, which is what this note is for - and why the desk restates every term in writing on each program sheet.
The terms, one by one
- Ex-factory (EXW)
- The price applies at the factory or warehouse door. You arrange and pay for everything onward: inland movement, export clearance, ocean or air freight, import clearance, delivery. The buyer carries the most; the supplier the least.
- FOB (free on board)
- The price covers the goods plus inland movement and export clearance, delivered on board the vessel at the named origin port. Risk passes at the ship's rail; the ocean freight, insurance and import side are yours. In footwear quoting this is a common default, and the named port matters - always check which one.
- Lead time
- The clock from a defined start to a defined finish. The start matters as much as the number: stock programs count from confirmation, and are picked immediately, typically dispatching within days; OEM bulk counts from sample approval, typically about 45-60 days, longer before peak season. A lead time without a start point is not a lead time.
- CTN (carton)
- The shipping carton - on the stock route, 12 pairs per carton, cartons in the range of about 70-77 x 41.5-45.5 x 32.5-34.5 cm, marked with model, color, size run and pieces. Orders are planned and priced in cartons, so carton counts are the arithmetic of every quote.
- Size run
- The distribution of sizes inside a carton. Stock runs step 1-2-3-3-2-1 across the six size steps, over EU 36-45 on most models and 36-41 on some women's and kids' runs. The run is fixed per model on the list and shown per color - confirm it per program, because your channel's demand curve has to live inside it.
- MOQ (minimum order quantity)
- The smallest order a program accepts. Stock minimums are counted in cartons and mixed models are allowed within a carton; OEM minimums are set per style and tooling, because they exist to recover sampling and molds. There is no universal number - only the figure confirmed per program in writing.
- Sample and counter-sample
- The development sample shows the design; the counter-sample shows what the factory proposes to build, and once approved it becomes the golden sample bulk is checked against. OEM sampling typically runs about 15-30 days for development plus counter. On stock there is nothing to sample - the shoes exist, which is the route's whole appeal.
- Spec sheet
- The document that states the program: materials, construction, sizes, grading, packing, labels, marking. Quotes and inspections both point back to it. A program without a spec sheet is a conversation, not an order.
- RFQ (request for quote)
- Your brief in a form a supplier can price: route, styles, colors, size runs, quantity, destination, dates. The desk's request form is exactly this, and a good RFQ gets a quotable answer in one round instead of four.
The same terms, side by side
| Term | Plain meaning | Confirm in writing |
|---|---|---|
| Ex-factory | Price at the supplier's door; buyer carries everything onward | Which door, and who books the collection |
| FOB | Supplier delivers cleared goods on board at the origin port | The named port, and what inland legs are included |
| Lead time | Clock from a defined start to dispatch | The start point: confirmation, or sample approval |
| CTN | Carton; the unit stock is sold and planned in | Pairs per carton, dimensions, marking |
| Size run | Size distribution inside the carton | The exact run per model and color |
| MOQ | Smallest accepted order for the program | Per style and tooling, for your program only |
| Golden sample | Approved counter-sample bulk is checked against | That it exists, is signed off, and is referenced at inspection |
| Spec sheet | Written program: materials, sizes, packing, labels | That the quote and inspection both cite it |
Reading a quote against the terms
With the vocabulary fixed, a quote can be read the way an accountant reads a ledger: line by line, asking which terms each figure assumes. Is the price ex-factory or FOB, and at which port. Does the lead time run from confirmation or approval. How many cartons, at what run, in which marking. Which labels and certificates the program assumes - in the United States, footwear labeling follows the FTC shoe content rules, and children's programs carry the CPSIA regime. A quote that answers these is quotable back to your own finance team; one that does not is a placeholder. The desk's quotes are built to survive that reading, and the reference ranges behind stock dispatch, sampling and bulk are collected on the MOQ and lead time page.
Where buyers lose money on words
The recurring losses are boring ones: an FOB price assumed to include inland delivery at destination; a bulk date assumed to run from deposit when it runs from sample approval; a carton count assumed to be pairs; a size run assumed to be flexible when it is fixed on the list. Each is a one-sentence clarification at RFQ and a one-line clause on the program sheet - and each, skipped, becomes a dispute with no document to point at. The buying sequence that keeps the words straight is walked through in how to source sneakers from China, and the document that pins the program down in sneaker spec sheet. Keep a one-page glossary of your own - the terms as your company uses them - and attach it to every RFQ; suppliers match the vocabulary they are given, and the misunderstandings stop before they start. Bring your terms questions to the request form, or read the wholesale framing first on the wholesale page.