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FOB prices 8 replies,2260 views

#1

I am still confused about the FOB price. For example.. The product states FOB  - $8 - 17 US. But when I get the quote from the supplier, they sell it to me for $40- 50US dollars. What it the point of the FOB price, when the actual price is different. Also, they say it's because of the shipping price. But the problem is I am the one who will be paying the shipping, $48US for DHL. Can someone explain this to me in detail. Thank you.

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#2
Re: FOB prices

What you are being told is nothing to do with FOB price.

 

The range you refer to (USD 8-17) is the range the supplier lists. They provide a range because there could be variations of a product that sell for different prices. For example, a USB flash disk can have different memory which means a different price, so they will put in a range.

 

Unfortunately many Chinese suppliers will use a deceptive practice of showing a lower price range than the real price. This is to attract you to their site. Once you are with them, they tell you the real price. Much like the range you were offered then asked to pay $40-50.

 

They call this approach marketing and trying to differentiate themselves in a competitive market. I call it lieing and dishonest and nothing more than a trap for unsuspectig buyers.

 

Regarding the shipping, if you are sending via DHL is probably best to arrange ex factory pricing rather than FOB. FOB essentially means the supplier is responsible for the goods and all the costs associated getting the goods to the warehouse of a shipping company. Using a courier like DHL is different, so FOB is not really appropriate in your case.

 

On top of this the courier charge is different. Thats for you to either arrange yourself or with the help of the supplier. You are correct in saying that FOB has nothing to do with the cost of sending the goods to you.

 

 

 

#3
Re: FOB prices

Thank you for your advice.

#4
Reply # 1

let me explain ths in simple word.

If you want to ship your orders by courier like dhl(small volume orders), normally, you can ask the seller to quote you exw price.

If you want to ship them by air or by sea, especially by sea for the bigger order), the seller quote you fob price, that means, they will pay some local costs, like trucking cost (from their factoy to the loading port), declaration fee, documents's fee and other related export costs. The seller can also get the tax rebate from the government if they have the export licences.

 

 

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#5
Reply #
BL001 wrote:

I am still confused about the FOB price. For example.. The product states FOB  - $8 - 17 US. But when I get the quote from the supplier, they sell it to me for $40- 50US dollars. What it the point of the FOB price, when the actual price is different. Also, they say it's because of the shipping price. But the problem is I am the one who will be paying the shipping, $48US for DHL. Can someone explain this to me in detail. Thank you.

#6
Re: FOB prices

Hi,

 

I think FOB price is $8-$17. The higher price is including shipping cost. Your supplier don't know what the FOB price is or they missed your description about payment term. Please clarify it to them

 

Thanks

 

 


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#7
Re: FOB prices

You don't know FOB price,because you are not importer.

Oh My God, is it Aliexpress Foums??

#8
Re: FOB prices

FOB price have two types 

 

1 . you get a lower price from the forwarder at your local port  , and the forwarder will offer a higher price to the supplier .it is called balance 

2. you get a higher price from the forwarder at your local port , and the forwarder will offer a lower price to the supplier . it is called balance too .

 

but if you get a very lower price that out of market , you need to check the offer from forwader whether they supply is reasonable , or it is a trap that the customer and supplier are all lost money to the forwarder , he is the big benefits person . 

 

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#9
Reply #

It would be nice to speak with others  who have already imported the products to the states. So when buying say "2v280ah VBS158 Series wide Traction Lead-acid Battery 2v 280ah" we'd know more or less what to expect. Is there such a way to find others who have purchased similar products or the exact same product?

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