What is the meaning of Ex-factory cost?

Ex-factory cost means the selling cost of the products less any price accompanies the delivery of the products to the customer. The delivery costs would incorporate all expenses incurred after the point at which all the things surrenders ownership of the products to the buyer. In short, the buyer is responsible for arranging pick-up of the goods from the factory. So all transport expenses and insurance are generated by the buyer. 

Generally, when we purchase something, the price consists of the costs of delivery. The price includes supplier factors in postage, fright-charges, transport overheads, etc. Where ex-factory does not involve these transportation costs. You get a cheap rate because you have to arrange a way to get your stuff from the factory. 

Benefits of Using Ex-factory terms

1. The buyer can get a clear picture of all the costs collect in the import-export of the goods. 
2. Eliminate any chances of the seller adding extra cost.
3. Save money by getting the customer in house shipping team of a third-party shipping company. 

Disadvantages of using Ex-Factory

1. Takes place that the customer clearance place. 
2. The seller requires to serve perfect details of the product for clearance and if the details are incorrect, the buyer might have to pay extra for finish clearance.