Trading Glossary

Purchase Order PO

A commercial document issued by the buyer to the seller: the first official offer, listing the products, quantities and agreed prices. In practice it confirms that you buy a given stock from a given supplier.

Proforma Invoice PI

A document issued by the seller that states what a given quantity of goods will cost, on what terms. The buyer usually pays against the PI; the final invoice follows.

Closing a deal

A deal is concluded once the parties have exchanged their company (incorporation) documents and then the PO and PI.

• A supplier who sends a PI is stating that the goods are physically in stock, unless the document says otherwise.
• A customer who sends a PO accepts the supplier's terms and commits to take the stock, whatever happens to the price or the exchange rate. This is a binding contract and a closed transaction.

Small print

Terms printed in small letters on a PI or PO are usually extra binding conditions for the other party. If you sign without crossing them out, you are bound by them.

What to do: cross out the terms you do not accept, sign, and send the document back to your business partner.

Stamp and signature

Both documents should carry the full company details and the signature of an authorised person. Many traders also expect the company stamp; ask your partner up front so the paperwork is not held up.

EXW Ex Works

The seller makes the goods available at its own warehouse. The buyer arranges and pays for everything from there, and carries the risk from pickup.

FCA Free Carrier

The seller hands the goods, cleared for export, to the buyer's carrier at a named place. The usual choice for air freight and courier shipments.

FOB Free On Board

The seller loads the goods on board the vessel at the named port of shipment; from then on the risk is the buyer's. Sea freight only.

CIF Cost, Insurance and Freight

The seller pays freight and insurance to the named port of destination, but the risk passes to the buyer once the goods are on board. For sea freight that is not in containers.

CIP Carriage and Insurance Paid To

Like CIF, but for any mode of transport: air, road, courier or containers. The seller pays carriage and insurance to the named destination.

DAP / DPU / DDP Delivered terms

The seller carries the risk until the goods arrive: at the place (DAP), unloaded (DPU, which replaced DAT in 2020), or with import duties and taxes paid (DDP).

Who is responsible during transport?

The forwarder or courier is responsible for the goods while it has them, but its liability is usually limited by weight, not by value. Who carries the loss between seller and buyer depends on the agreed Incoterm.

What if the stock is stolen?

Whoever carries the risk at that moment (see the Incoterm) makes the claim. With full cargo insurance, the insurer pays the insured value. Without it, the carrier's limited liability may cover only a small part. Insure high-value electronics for their full value and keep the PI, PO and transport documents ready for the claim.

Why the spec matters

A buyer who orders EU spec and receives another spec gets a shorter warranty, a foreign box and maybe the wrong charger or bands, so the stock is harder to sell. If the spec is not on the PI or PO, it is hard to claim.

Is Singapore spec the same as Asia spec?

Usually it is sold as Asia spec, but confirm with the supplier: box language, charger plug and bands can still differ from one Asian market to another.

Can EU spec have a 3-pin charger?

Not usually: EU spec comes with a 2-pin plug. A 3-pin plug (type G) points to UK, Singapore, Hong Kong or Middle East stock. Many new phones ship with no charger at all, so check what the box contains.

Stock categories

• Used and tested: checked and working
• Used and untested: sold as it is
• BER, Beyond Economic Repair: repairing costs more than the device is worth
• Used with grades A, B, C, D
• Refurbished with grades A, B, C, D

Grading systems

Grades and their criteria depend on the country and the company, and every company has its own system. That causes most of the confusion in this market, so always agree on whose grading applies.

Inspection window

New stock carries the manufacturer's warranty. Used stock usually has only about 5 days: the buyer's in-house service centre tests the delivery, separates good units from faulty ones, and the faulty ones go back to the supplier within that time.

The old-school code

Before online platforms, traders worked by an unwritten code. They made big margins and took big losses, but they always kept their word, even when it cost them 20–30k euros on a deal. Today most after-deal disputes come down to the PI and the PO, so put everything in writing.

Three key elements

1. Honesty
2. Hard work
3. Capital

A company that has all three will grow.

Communication

Besides the official documents, keep a written conversation history. WhatsApp and email are the main channels between traders today; save the chats that confirm prices, specs and delivery.

B2B platforms

A B2B platform such as handelot.com helps you find verified partners. A good trader works closely with their account manager to get market news, references and the newest products.