Shipping terms refer to the specific conditions and agreements that outline the responsibilities of buyers and sellers during the transportation of goods. These terms clarify who pays for shipping costs, when ownership of the goods transfers, and who is responsible for any damages or losses that may occur during transit. Common shipping terms include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works). Understanding shipping terms is crucial for both businesses and consumers to avoid misunderstandings and disputes. They help ensure that all parties are aware of their obligations and can plan accordingly. Clear shipping terms can also impact the overall cost and efficiency of the shipping process.