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The acronym FOB stands for 'free on board'. It refers to freight costs of shipping deliveries in business, and denotes the point between the seller and buyer where the goods do or do not have the freight charges paid for. For example, if a Los Angeles popcorn company buys popcorn from Alaska, and the Alaska seller declares the purchase to be FOB Alaska, or FOB their own warehouse, this means the buyer must pay the freight from Alaska to California. If the seller states the popcorn purchase is FOB Los Angeles, or FOB 'your door', then the Alaska seller pays the freight to that logistics point.
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