What FOB actually covers
An FOB price covers the goods themselves, packing, and delivery to the export port, loaded onto the vessel. Once the goods are on board, responsibility and further cost pass to the buyer — everything from ocean freight onward is not included in an FOB quote.
What's missing from an FOB number
Ocean freight, marine insurance, destination port charges, customs duties and clearance in your own country, and inland transport from the port to your warehouse all sit outside FOB pricing. Buyers who budget only against the FOB number are routinely surprised by landed cost.
Why FOB is still the right term to negotiate on
FOB pricing is useful precisely because it isolates the factory's cost from freight variables that change by route, season and container availability. Comparing factory quotes on an FOB basis keeps the comparison fair, as long as you separately budget freight and duties.
A rough way to estimate landed cost
A reasonable starting estimate is FOB price plus 15–30% for freight, insurance, duties and destination handling, though the real number depends heavily on your destination country and product category — this is exactly the kind of number worth getting a real quote on rather than assuming.