Categories: Magento

FOB or “Free on Board” is a shipping term used to indicate the receiving party is responsible for the shipping charges. Often the buyer is typically responsible for the charges, but if the terms of the agreement state FOB; the seller pays for the transportation. The transportation charges are laid out in the terms agreement between the buyer and the seller under the “FOB shipping point” and “FOB destination” in the United States and Canada. The term differentiates when the title of the goods is passed from the buyer to the seller.
The terms are specified as follows:

  • FOB Shipping Point – The title of the goods is passed to the buyer at the shipping point.
  • FOB Destination – The title of the goods is passed when the buyer gets to the destination.

On the Magento®eCommerce platform, online businesses have the option to state whether FOB is required or made available to the consumer.

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Definition of "FOB" by Chat GPT: FOB stands for "Free On Board" or "Freight On Board" and refers to a shipping term that determines who is responsible for the transportation and delivery of goods from the seller to the buyer. When a shipment is FOB, the seller is responsible for the goods until they are loaded onto the transportation vehicle, at which point ownership and responsibility transfer to the buyer.
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