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What do you mean by F O B?

Updated: 4/28/2022
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13y ago

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Commonly seen in ads back in the days when much stuff was ordered to be sent by rail or truck, FOB stands for either "Free On Board" - meaning the buyer didn't pay for the shipping, or "Freight On Board" which means the buyer did pay for shipping. Confused yet? Most commonly, the term, say for a new Ford car, would be printed in the ad: "$XXX.xx, FOB Detroit". Translation: If it had to be shipped - you paid the shipping.

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