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3 Examples of Goods In Transit

 , updated on September 29, 2017
Goods in transit are merchandise or finished goods that have been shipped by a seller but haven't been received yet by the buyer. The following are illustrative examples.

Ecommerce

An ecommerce seller ships merchandise to a customer. The goods remain in the seller's inventory until the customer receives the order. At this point the goods are considered cost of goods sold.

FOB Shipping Point

Shipments between firms may be designated freight on board (FOB) shipping point. This means that ownership transfers to the buyer as soon as the goods are shipped. In this case, goods are considered cost of goods sold by the seller as soon as they depart. The buyer may not recognize goods in inventory until they are received. However, strictly speaking they are in the buyers inventory from the moment they ship.

FOB Destination

Freight on board (FOB) destination are purchase terms that transfer ownership when the buyer receives a shipment. In this case, the goods remain in the seller's inventory until they receive confirmation that the shipment was completed.
Overview: Goods In Transit
Type
Definition
Goods in transit are merchandise or finished goods that have been shipped by a seller but haven't been received yet by the buyer.
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The common types of merchandise.

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A definition of work in process with examples.

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The definition of finished goods with examples.

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The loss of merchandise between point of manufacturer and point of sale.

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