1. Money
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Two workers on the shipping line at warehouse
Jetta Productions/ Iconica/ Getty Images
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

FOB Destination: Seller pays the freight.

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

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