What is the full form of FOB:

FOB represents Free on Board.

Free on Board is also called FOB. It is a term used in shipping the goods from one place to another. FOB or Free on Board is a term mostly used in sales where it is defined that the price which is quoted by the selling company includes the charges of placing the goods on a ship at the particular port mentioned by the buyer. For example: if we buy a good from a particular country, then the seller will have to send us the exact amount which we need to pay. That amount will include various charges. One of these charges will be the shipping charge. Shipping charge is the one which the buyer has to pay for letting the seller place the good on a ship at a particular port mentioned by the buyer. Free on Board is called differently in different places. It is called as freight collect, freight forward etc.

Free on Board is used to indicate that there will be no shipping charge for the goods which are on board of a particular ship. It is mentioned in a particular format: F.O.B. Melbourne.