Sourcing glossary
FOB
Also known as: Free On Board
An Incoterm under which the seller clears goods for export and loads them on board the vessel at a named port; risk and main freight cost pass to the buyer once the goods are on board.
FOB is always followed by a port of loading, for example FOB Shenzhen or FOB Ningbo. The supplier pays inland transport to that port, export customs clearance and loading. The buyer pays ocean freight, insurance, destination charges and import duties.
FOB is meant for sea and inland waterway shipments. For air freight or containerised cargo handed over at a terminal, FCA is the more accurate term.
See the full comparison in EXW vs FOB vs DDP.
Related terms
Guides that use this term
Trade terms
EXW vs FOB vs DDP: Which Incoterm to Use When Buying from China
EXW, FOB and DDP compared for China imports: who pays each cost, where risk transfers, and which term suits first-time buyers vs experienced importers.
Updated 2026-09-26 · 3 min read
Platforms
Alibaba Trade Assurance: What It Covers and How to Claim
What Alibaba.com Trade Assurance covers and excludes, which payments qualify, refund windows, delivery-delay compensation and how to file a claim.
Updated 2026-09-23 · 5 min read
QC
Defective Goods from China: What to Do When Your Order Arrives Wrong
Defective goods from a Chinese supplier? How to document evidence, use your PO terms, negotiate a fix, file Trade Assurance or insurance claims, and prevent repeats.
Updated 2026-09-21 · 5 min read
Shipping
Shipping from China to Amazon FBA: Rules, Options and Pitfalls
How to ship inventory from China into Amazon FBA in the US: carton and pallet limits, labels, importer of record, DDP forwarders, AGL and prep centers.
Updated 2026-09-20 · 6 min read
Yiwu
Yiwu Sourcing Agent Fees: How Agents Charge and What to Compare
How Yiwu buying agents charge: commission ranges, flat and per-container fees, what is included, hidden markups, red flags and how to compare quotes fairly.
Updated 2026-09-19 · 5 min read
Compliance
How to Calculate Landed Cost When Importing from China
A step-by-step landed cost formula for China imports: product cost, freight, insurance, duty, VAT, fees and delivery, with why US and EU/UK duty bases differ.
Updated 2026-09-17 · 6 min read
Part of Incoterms & Payment.