What is FOB?
submitted by Hans Klopek

Nubius

It's a shipping term. It means free on board.

FOB specifies whether the seller or buyer is responsible for transportation costs/risks. The two options are FOB Shipping Point, which means the ownership transfers once the goods leave the seller's location, and FOB Destination means ownership transfers once the goods arrive at the buyer's location.

If there's a shipping disaster and the goods are lost, you need to have agreed on who is responsible beforehand.

thwimmy

FOB stands for free on board. It's a term that tells you who pays for shipping and who is responsible if something gets damaged during transport. FOB shipping point means the buyer takes responsibility once the goods leave the warehouse. FOB destination means the seller keeps responsibility until the goods reach the buyer.