FOB, OEM, ODM, MOQ & More: A Glossary of Sourcing Terms Every Bangladesh Exporter Should Know
A plain-language glossary of the pricing, manufacturing, and compliance terms international buyers use every day — so nothing in a buyer's email or tech pack catches you off guard.
A buyer's first email often arrives full of shorthand — "looking for FOB pricing, OEM only, MOQ 500 pcs, need BSCI" — and how fluently you respond signals whether you're an experienced exporter or a factory still learning the ropes. None of these terms are complicated once explained, but getting one wrong in a reply can cost you credibility before the conversation even starts.
Pricing & Trade Terms
The price includes production and delivery to the port of export, loaded onto the vessel. The buyer takes over cost and risk from that point — the most common pricing basis buyers request first.
The price includes shipping and insurance all the way to the buyer's destination port. Higher quote than FOB, but useful when a buyer wants a landed-cost comparison without arranging their own freight.
The buyer collects goods directly from your factory and handles all transport themselves. The lowest quote of the three, since you carry none of the shipping arrangement or cost.
The smallest quantity you're willing to produce per style or order. Buyers ask for this early to judge whether your factory fits their typical order size — stating it clearly avoids wasted back-and-forth.
Manufacturing Relationship Terms
You manufacture a product exactly to the buyer's own design and specifications. The most common arrangement for brand-label garment and footwear production.
You offer your own in-house designs that a buyer can select and rebrand under their own label — useful if your factory has design capability beyond pure execution.
You manufacture and sell under your own brand name directly. Less common in B2B export sourcing, but relevant if you're building a direct-to-retail presence alongside private-label work.
A detailed spec document covering measurements, materials, construction, and trims for a specific style — the reference a factory uses to quote and produce accurately. A buyer sending a tech pack for review is a strong qualified-lead signal.
Compliance & Quality Terms
A widely recognized social compliance audit covering labor conditions, working hours, and worker safety — one of the most commonly requested certifications by European buyers.
A certification focused on lawful, humane, and ethical manufacturing, common in US buyer requirements — often requested alongside or as an alternative to BSCI.
The inspection process — in-line during production or final before shipment — that verifies goods meet the agreed spec before a buyer accepts the order.
The time from order confirmation to shipment-ready goods. Buyers weigh this heavily against your capacity claims — an unrealistic lead time promise damages trust fast if it isn't met.
Frequently Asked Questions
FOB covers your costs up to loading the goods onto the export vessel; the buyer arranges and pays for shipping from there. CIF includes shipping and insurance to the buyer's destination port, so your quote is higher but the buyer has less to arrange themselves. Most initial buyer inquiries ask for FOB pricing.
It's smart to state your own MOQ clearly rather than only reacting to what the buyer requests — it filters out mismatched inquiries early and signals you understand standard sourcing practice.
OEM is by far the more common arrangement — most international brands bring their own designs and specifications and expect the factory to execute them precisely. ODM capability (offering your own designs) can be a differentiator if you have in-house design talent, but it's the exception rather than the rule.
Not necessarily both — which one matters depends on your target market and buyer base. European buyers more commonly request BSCI; US buyers more commonly request WRAP. If you're targeting both markets, having both strengthens your position, but many factories start with whichever their primary market requires.
It damages the relationship fast, often permanently — a missed lead time on a first order is one of the most common reasons buyers don't come back for a second one. It's better to quote a realistic, slightly conservative lead time than an optimistic one you might not hit.
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