FOB is an international shipping term that defines exactly when ownership and risk transfers from supplier to buyer. Learn how FOB pricing works and why it's critical for Amazon sellers importing goods.
FOB (Free on Board) is an internationally recognized shipping term, part of the Incoterms framework published by the International Chamber of Commerce. Under FOB terms, the seller is responsible for all costs and risks associated with getting goods to the origin port and loading them onto the vessel. Once the goods are on board the ship, full responsibility—including freight, insurance, and risk of loss—transfers to the buyer.
Most Amazon sellers sourcing from China or other overseas manufacturers negotiate on FOB terms. Understanding FOB is essential for accurately calculating your landed cost—the total you spend to get one unit to an Amazon fulfillment center. Miscalculating landed cost is one of the most common and costly mistakes new importers make, often wiping out expected margins before a single sale is made.
Always clarify whether a supplier quote is EXW or FOB before comparing prices across vendors. FOB gives you a more accurate cost baseline and lets you shop for competitive freight rates independently. Pair FOB sourcing with a reliable freight forwarder who understands Amazon's FBA inbound requirements—incorrect labeling or packing specs can cause delays and unexpected fees.
