what is fob destination

FOB destination is a shipping term that indicates the point at which the title of goods transfers from the seller to the buyer. In FOB destination, the seller retains ownership of the goods and is responsible for replacing damaged or lost goods up until the point of delivery to the buyer. The buyer is not responsible for the goods during transit and is not responsible for paying for shipping costs. The buyer is also able to delay ownership until the goods have been delivered to them, allowing them to do an initial inspection prior to physically accepting the goods to note any damages or concerns. FOB destination is more favorable for a buyer than FOB shipping point.