A shipper may be acting as a distributor or a retailer for a larger company or manufacturer. This manufacturer markets their product through a network of dealers, distributors, or retailers and does not sell direct to the consumer. When purchasing from a business that represents a manufacturer s product, the business may designate terms of FOB Factory. This means the goods will ship directly from the factory not from the distributor, dealer, or retailer. Title of goods passes to buyer once the goods leave the factory dock.
Transportation is arranged by shipper.
Title of goods passes to buyer once the goods leave shipper s dock. Shipper prepays carrier for their service and adds the charge of this service to the buyer s invoice on goods shipped. Transportation is customarily arranged by shipper but can be arranged by buyer. Title of goods passes to buyer once the goods leave shipper s dock. Buyer is responsible for paying freight, and carrier will invoice buyer direct for payment.