Here is a quick definition of FOB on wikipedia:
http://en.wikipedia.org/wiki/Free_On_Board
Just to let you know, I am a Distribution manager at one of my company's Major centers. We ship and receive product all day long, and FOB is very important to know - since responsibility of the shipment is concerned, in case it is lost or damaged. I am located in New Orleans, and was here for 16 years before Katrina, and WE had to know the FOB of shipments that we had coming and going right before the storm, since we needed to know WHO was responsible for the value of the goods that were re-routed/lost/damaged during that time of Katrina, since we had shipments in route to us and from us. If it is FOB shipping, then the Buyer is responsible for the package when it leaves our dock. If it is FOB destination, then the seller is responsible until the buyer receives it. This is a big deal, depending on who can and must claim insurance claims and responsibilities for lost/damaged shipments.
From what I see here on AZB, most of the sales I have seen seem to be FOB destination shipments. Therefore, if the Cue/package is lost or damaged, then the seller must file the claim, and be the one responsible for any losses or damages. At least that is how I feel about my shipments, but when it goes to international shipments and higher cost items, that might change depending on how much power I have to file a claim and follow up in a foreign country.
Just to let you know, I ship over 3-4 Hundred UPS ground/Fed EX packages a day, and close to 4-5 LTL shipments a day from my location alone. And I am responsible for claims on all the packages my company sends from our 5 distribution centers located around the country. We use many LTL carriers, and receive claims on damage frequently. And the costs associated with these losses is astounding. Therefore, FOB is very important. Depending on which shipping authority, I either have a lot of work on my desk, or very little.
I hope this helps.
Michael