a term of pricing which shows the mentioned price on documents covers all the costs including the transfer of products on the overseas ship provided or for the customer.

FOB or “Free On Board,” is a term in international commercial law indicating at what point the relative obligations, costs, and risk involved in the shipping of products, shift from the seller to the customer under the Incoterms standard published by the International Chamber of Commerce.

This is a trade term that indicates whether the seller or the customer is responsible for products that are damaged during transport. “FOB shipping point” or “FOB origin” means that the buyer is at risk when the seller ships the merchandise. “FOB destination” means the seller retains the risk of loss until the products get to the purchaser.

Free on Board (FOB) is an Incoterm (International Commercial Terms) used in international trade to define the terms of a sale between a buyer and a seller. It is used to specify the responsibilities of the buyer and the seller in relation to the transportation of goods from the seller’s location to the buyer’s location.

In the context of Amazon, FOB may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. It is typically used when the buyer is responsible for arranging and paying for the transportation of goods from the seller’s location to the buyer’s location.

Under the FOB Incoterm, the seller is responsible for the following:

• Cost: The seller is responsible for paying the cost of the goods, including any taxes or duties that may be due.
• Loading: The seller is responsible for loading the goods onto the transport vehicle at their location.

The buyer is responsible for the following:

• Insurance: The buyer is responsible for purchasing and maintaining insurance on the goods until they are delivered to the buyer’s location. This is meant to protect against any loss or damage to the goods while they are in transit.
• Freight: The buyer is responsible for arranging and paying for the transportation of the goods from the seller’s location to the buyer’s location. This includes any associated costs, such as shipping fees and port charges.
• Unloading: The buyer is responsible for unloading the goods from the transport vehicle when they arrive at their location.
• Clearance: The buyer is responsible for clearing the goods through customs at their location.
• Payment: The buyer is responsible for paying the agreed-upon price for the goods, as well as any additional costs incurred under the FOB Incoterm (such as insurance and freight charges).

There are a few key advantages to using FOB as an Incoterm. One of the main advantages is that it shifts the responsibility for the transportation of goods from the seller to the buyer. This can be especially useful in situations where the buyer has the resources or expertise to handle the transportation of goods themselves.

Another advantage of FOB is that it provides a level of protection for the goods while they are in transit. The buyer is responsible for purchasing and maintaining insurance on the goods, which can provide a level of protection against loss or damage.

There are also a few potential drawbacks to using FOB as an Incoterm. One of the main drawbacks is that it may increase the overall cost of the transaction for the buyer. The buyer is responsible for paying for the transportation of the goods and for purchasing and maintaining insurance on the goods, which can add to the overall cost of the sale. Additionally, the buyer is responsible for unloading the goods and clearing them through customs at their location, which can also incur additional costs.

In summary, Free on Board (FOB) is an Incoterm used in international trade to define the terms of a sale between a buyer and a seller. In the context of Amazon, FOB may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. Under the FOB Incoterm, the seller is responsible for the cost and loading of the goods, while the buyer is responsible for insurance, freight, unloading the goods, and clearing them through customs at their location. There are a few key advantages to using FOB, such as shifting the responsibility for the transportation of goods from the seller to the buyer and providing a level of protection for the goods while they are in transit. However, there are also a few potential drawbacks, such as the possibility of increased costs for the buyer and the potential for additional

responsibilities for the buyer in terms of insurance, freight, unloading, and customs clearance.

It is important for buyers and sellers to carefully consider which Incoterm is most appropriate for their needs when conducting a sale on Amazon or any other platform. Different Incoterms have different terms and responsibilities, and it is important to choose the one that best meets the needs of both parties. It is also important to carefully review and understand the terms and conditions of any Incoterm before agreeing to it in a sale, to ensure that both parties fully understand their responsibilities and obligations under the terms of the sale.

In addition to FOB, there are several other Incoterms that may be used in the context of Amazon or other international trade transactions. Some of the other commonly used Incoterms include CIF (Cost, Insurance, and Freight), CFR (Cost and Freight), EXW (Ex Works), and DDP (Delivered Duty Paid). Each of these Incoterms has its own set of terms and responsibilities, and it is important to carefully consider which one is most appropriate for a particular sale.