Glossary · Business & Sourcing
What Is FOB Price?
FOB (Free On Board) price is the unit price of goods delivered onto the vessel or aircraft at the named port of shipment, with export clearance included and freight, insurance and import duties excluded. In cosmetics quoting, FOB is the standard baseline that lets buyers compare suppliers on the same footing.
Why it matters when you source
FOB is the number to standardize on when comparing quotes, because it excludes the variables you control — freight mode, insurance and duty. Ask every supplier to quote FOB plus the named port, then model your landed cost yourself.
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