In a nutshell: FOB determines the point at which ownership and responsibility for the shipped goods shift from the seller to the buyer.
What Is Free on Board (FOB)?
Free On Board (FOB), is a widely used shipping term in the world of international trade and logistics. It is one of several Intercom shipping types established by the International Trade Administration as rules which define the responsibilities of sellers and buyers in the export transaction.
Understanding FOB can be crucial when importing or exporting goods, including wood door components. FOB determines the point at which ownership and responsibility for the shipped goods shift from the seller to the buyer.
Who pays for Free on Board (FOB) freight?
At its core, FOB shipping specifies two key points:
- FOB Origin: When you see “FOB [Origin],” it means that the ownership and responsibility for the goods transfer from the seller to the buyer as soon as the goods leave the seller’s premises. This implies that the buyer bears the risk and costs associated with transportation from that point onward.
- FOB Destination: Conversely, “FOB [Destination]” indicates that the seller remains responsible for the goods until they reach the buyer’s designated destination. In this scenario, the seller typically includes shipping costs in the overall price.
Why Free on Board (FOB) matters
Understanding FOB is vital because it affects the logistics, costs, and risks associated with shipping.
Free on Board (FOB) Origin
For instance, if you’re the buyer and you’ve agreed to FOB Origin terms, you’ll need to arrange and pay for transportation, insurance, and any potential damage that may occur during transit.
You have the freedom to choose a carrier that aligns with your specific needs, whether it’s for
- Cost savings
- Faster delivery
- Specialized handling or other preferences
This flexibility can be a significant advantage for businesses that are already accustom to arranging freight transportation.
On the flip side, While you have control over the shipping process, you also bear the risks associated with it. If you choose FOB Origin there should be some benefit to you in regard to the cost, speed of delivery or care in handling aspects of the shipping process.
Free on Board (FOB) Destination
If you’ve agreed to FOB Destination terms, the responsibilities of shipping simply flip from the buyer to the seller
- The seller coordinate shipping, potentially leveraging their network for efficient cost and delivery time frame.
- The cost of shipping will be included in the overall purchase price of the product.
- The buyers may have less control over shipping decisions, but the seller is responsible until goods reach the buyer’s destination.
Wrap up Origin vs Destination
It’s essential to negotiate and clearly specify FOB terms in your contracts to avoid misunderstandings and unexpected expenses. There is not a right or wrong option, the most important aspect is to know WHO is responsible for shipping costs.
Which FOB option does S&R Parts.com ship: Origin or Destination?
Free on Board (FOB) Origin
When you place an order on our website, by default it is figured as FOB Origin.
- This means that you, as the buyer, assume ownership and responsibility for the products as soon as they leave our facility in Fargo, North Dakota.
- This assumes, you the buyer, paying for and arranging the shipping. You have the freedom to select the carrier, method, and cost that align with your specific requirements.
Rest assured, we will professionally palletize your order and load it onto the carrier’s truck at our Fargo facility, ensuring the goods are well-prepared for their journey to your destination.
Free on Board (FOB) Destination
If you prefer, we do offer FOB Destination shipping as well. For this options you’ll need to submit a request for a freight quote. Here’s how you do it:
Add a Freight Quote
- On the checkout page, enter your shipping address and contact information
- Select “Add Freight Quote” option (located below the “Credit card/debit card” option)
- We will receive your request and someone from our customer support team will promptly provide you with a customized shipping quote.
- Review the quote and if you choose to proceed, we’ll send you an invoice for your entire order, including shipping costs.
- Once payment is received, your order will move into production and we’ll handle the shipping arrangements to ensure your order reaches its destination securely.
Request a Quote with Freight Estimate
Prefer FOB Destination terms? Let us provide you a freight quote for your order.
If you know which wood door component you need and are ready to place your order then please follow the button below to our Request for Quote page. One of our team members will promptly assist you with your quote request including freight to your destination point.