Ecommerce shipping: How it affects the customer experience and what is the best way to ship DDU vs DDP
October 1, 2021
Purchasing decisions are increasingly dependent on shipping times. So what can you realistically do, and what shipping options should you consider to keep shoppers happy?
Determining shipping options starts with your customer
Whether you're creating a new shipping strategy or revising your current one, it's important to understand a few things before you start choosing shipping options.
Offering too many shipping options can impose a large cognitive burden on the shopper and deter them from buying. People want cheap and fast or, ideally, a combination of the two.
Before looking at what shipping options to offer, you need to understand three things:
Your customers' expectations: what do your customers expect from your brand? Some may understand that you can't offer same-day shipping. But you can meet their expectations by offering next-day shipping, two-day shipping or free local pickup.
What your competitors are doing: Your competitors' shipping strategies won't fully inform yours. However, they can help you better understand the affordable options you can provide.
Your shipping goals: For example, if your competitor offers same-day shipping for an additional fee, you could offer free overnight shipping. The latter takes a little longer, but doesn't cost customers a penny.
DDU vs. DDP shipping?
International shipments have mostly been shipped via duty unpaid delivery (DDU). The alternative to DDU shipment is shipment via duty paid delivery (DDP). The key difference between these terms has to do with the fact that the seller or consumer must be responsible for paying the duties and taxes on an international shipment and its imported product.
In DDU shipping, this shipping method requires the consumer to assume responsibility for the payment of all taxes and duties owed on an item. At the time of delivery, the consumer is contacted by customs officials in the importing country and must pay these fees in order for customs officials to release the shipment for delivery.
DDP, or "Delivered Duty Paid" shipping, places the onus on the shipper to pay duties and taxes up front, and include them in the price of their products or add them to their shipping charges.
While the differences between these terms may seem slight, each method has a significant impact on international business and the customer experience offered to international consumers.
Crossborderit's DDP Experience
Crossborderit (CBIT) is about being transparent. Helping customers at every step of the international supply chain deliver to their customers more efficiently and cost-effectively. Crossborderit (CBIT) is here to help customers have a transparent, single-payment output. This makes customers of freight forwarders and trade brokers more loyal.
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