Seller pays for everything in the FOB destination
Posted: Wed Feb 12, 2025 6:08 am
FOB regulates legal jurisdiction
The terms and conditions of FOB do not regulate the legal jurisdiction for disagreements. However, if it does, then it should be mentioned separately in the agreement.
FOB destination is not favorable for sellers
It would seem unfair that the FOB shipping point puts all the risk majorly on the buyer. However, it can hamper the seller’s reputation as well, which can, in turn, reduce their sales if the product is damaged in transit. Although it slovenia phone number list lowers the shipping cost for the buyers, they still don’t agree with it in many scenarios, specifically in the case of fragile orders, as the risk of damage is very high.
Well, the payment terms differ from contract to contract. In general, in FOB destinations, sellers pay relatively more, but they can negotiate the terms and include shipping costs in the price. Furthermore, the buyer might indirectly have to pay for the freight and insurance expenses.
Why Work With A 3PL Provider?
FOB shipping and related incoterms are clearly defined terms that play an important role in international trade. These terms define responsibilities and costs to buyers and sellers and protect the interests of both parties.
The terms and conditions of FOB do not regulate the legal jurisdiction for disagreements. However, if it does, then it should be mentioned separately in the agreement.
FOB destination is not favorable for sellers
It would seem unfair that the FOB shipping point puts all the risk majorly on the buyer. However, it can hamper the seller’s reputation as well, which can, in turn, reduce their sales if the product is damaged in transit. Although it slovenia phone number list lowers the shipping cost for the buyers, they still don’t agree with it in many scenarios, specifically in the case of fragile orders, as the risk of damage is very high.
Well, the payment terms differ from contract to contract. In general, in FOB destinations, sellers pay relatively more, but they can negotiate the terms and include shipping costs in the price. Furthermore, the buyer might indirectly have to pay for the freight and insurance expenses.
Why Work With A 3PL Provider?
FOB shipping and related incoterms are clearly defined terms that play an important role in international trade. These terms define responsibilities and costs to buyers and sellers and protect the interests of both parties.