What is the term for when the vendor pays the transportation charge until merchandise reaches the retailer?

The term for when the vendor pays the transportation charges until the merchandise reaches the retailer is "FOB Destination." This means that the seller is responsible for all costs associated with transporting the goods to the buyer's location. The seller retains ownership and full risk of the merchandise until it arrives at the specified destination, which provides the retailer with the assurance that they will not incur freight costs during the transportation of the goods. This can be advantageous for retailers as it minimizes their upfront expenses related to shipping.

In contrast, the other terms refer to different shipping responsibilities. For instance, "FOB Shipping Point" indicates that the buyer assumes responsibility for freight costs once the merchandise leaves the seller’s premises. "FOB Factory" generally suggests that ownership transfers at the factory, placing transport liabilities on the buyer from that point. "FOB Warehouse" typically refers to goods being transferred at a warehouse location, which also involves specific agreements about transportation costs and responsibilities. Understanding these distinctions is crucial for managing shipping logistics and costs effectively in buying and merchandising operations.