Labels, hangtags, packaging, Incoterms, duties and freight — the part of the margin that most founders discover only after the first invoice.
Every garment eventually has to be labeled, packed, shipped, cleared through customs, and delivered. That last mile of the supply chain eats margin quietly: a packaging choice made in a fifteen-minute call can cost thousands across a production run, and an Incoterms misunderstanding can land you a surprise duty bill at the port. This pillar is the practical layer of getting finished goods to your customer.
The paperwork that ships with your product
- Main label — content, care, fiber composition. Compliance requirements differ by market (US FTC, EU Textile Regulation, CA Prop 65).
- Hangtag — the brand-facing tag. This is where most sustainable claims live, so it's where your certification paperwork earns its keep.
- Care label — wash, iron, dry symbols. Get these wrong and you absorb the returns.
Incoterms without tears
EXW (ex-works) — you collect the goods at the factory; cheapest per unit, most work for you. FOB (free on board) — factory delivers to the port and pays export formalities; the most common starting point for apparel. DDP (delivered duty paid) — factory handles freight and duties through to your door; highest price, least friction. The per-unit difference between EXW and DDP can be 15-25% of landed cost — know which you're being quoted.
Packaging that doesn't eat your margin
Polybags, hangtag cards, boxes and tissue are line items on the factory quote — and they're negotiable per style. Sustainable alternatives (recycled polybags, paper tape, FSC cards) typically add pennies per unit at bulk, not dollars. The expensive mistake is re-spec'ing packaging after the bulk PO is placed, which triggers re-quoting on the whole run.
Who this pillar is for
Founders approving their first purchase order, ops leads comparing FOB vs DDP quotes, and brands making "plastic-free" packaging claims who want to know what the factory can actually deliver.
In this pillar
3 guides to read
Apparel Labels & Hangtags: The Compliance Basics
Main labels, care labels and hangtags — what each must legally contain by market, and how to spec them so they don't become a re-quote.
Incoterms for Apparel Buyers: EXW, FOB, DDP Explained
The three shipping terms you'll actually be quoted — EXW, FOB and DDP — what each includes, and why the difference can be 15-25% of landed cost.
Sustainable Packaging for Apparel: What the Factory Can Actually Do
Recycled polybags, paper tape, FSC hangtag cards — what's genuinely available at bulk, what adds pennies, and how to avoid re-spec'ing after the PO.
Ready when you are
Talk to our production team
We work with emerging and established apparel brands on ethical, women-led production in India. If you have a tech pack or even just a concept, we can walk you through what's possible.