What does FOB mean?

OK guys and girls, A supplier mentioned FOB China on all orders.

I looked up google but still dont get it just yet.

What exactly is the process when dealing with FOB China? Does this mean that the seller is willing to pay for postage and packaging???


Cheers

freight on board that means that u gotta pay for shipping

Hi thanks for the reply, I know what it stands for but hw does it work??

SINCE YOU OPT FOR FOB TERM, THE SHIPMENT BECOMES YOUR RESPONSIBILTY ( IN CASE YOU CLARIFY WITH PRODUCER THAT YOU WILL BE USING YOUR SHIPPING LINE

You have to be careful here. In international trade parlance, saying just 'FOB' means the sender pays the shipping to destination, or at least to the destination port. This is the original use of the term.

If the phrase is 'FOB Timbuktu,' then the sender pays the shipping to Timbuktu.

The shipper can say 'FOB our yard,' which is a misuse of the term, but it would mean that they don't pay shipping cost at all.