1. Money
Send to a Friend via Email
Definition: Shipping term used to indicate who is responsible for paying transportation charges. It is the location where ownership of the merchandise transfers from seller to buyer.
Also Known As: Free On Board, Freight On Board
Examples:

FOB Destination: Seller pays the freight.

FOB Factory: Buyer takes title once shipped and pays transportation costs from factory to store.

Glossary of Retailing Terminology - Index of F Terms

©2014 About.com. All rights reserved.