What is FOB price

- Nov 07, 2019-

In foreign business trade, not only camping outdoor garden products, but also all the products selled from China to abroad, we often quote FOB price to our customers. However, what is the FOB price?

FOB, an acronym for Free On Board, is one of the trade terms commonly used in international trade. For F.O.B. transactions, the buyer shall dispatch a vessel to pick up the goods. The risk shall pass from the seller to the buyer when the goods are loaded on the nominated vessel at the port of shipment.

Simply put, if you buy equipment from a foreign country, the seller can only send the equipment to the port in their country, and the rest of the transportation and insurance costs from abroad to China will be covered by you.

, for example, a door garden supplies guest C intends to purchase lohas water bag industrial co., LTD., in accordance with the FOB price as $6 /pc, then this is the price of $6 automatic watering bag contains all kinds of production costs, packaging costs, all the plants trees bag transportation to the specified port, such as ningbo, Shanghai port, for example, before this all costs are borne by the lohas industrial co., LTD.

The rest of the costs from the Chinese port to the port of the country where customer C purchased watering bags for trees, customs clearance, insurance and so on, will be borne by customer C.

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