Why is Delivered Duty Paid (DDP) the best way to ship your products?
January 27, 2022
When it comes to cross-border shipments, the shipping method for handling customs and duties is vital to providing a unique and satisfying customer delivery experience (CDX).
DDP is part of the international rules that define the obligations of buyers and sellers when completing a distance sale. The International Chamber of Commerce established these rules to have a set of standards for international trade.
If you are a buyer, what are your obligations?
- Pay the price as stated in the purchase
- Pick up the goods at the agreed destination
- Notify the seller in good time, if you choose the date and place where you will receive the goods
- Accept the landed order
If you are a seller, what does the DDP Incoterm imply?
- To landed the goods and the commercial invoice
- Obtain export and import licenses
- Carry out all customs formalities and assume their costs
- Pay all expenses related to the merchandise until it arrives at the agreed destination
- Pay the costs of verification operations, as well as absorb the payment of documents issued in the country of importation
DDP vs. DDU shipments
When deciding whether to use DDP or DDU shipping for any international shipment, it is important to consider the cost of each method and focus on their effect on the bottom line.
Shipping such as DDU seems cheaper because it does not include handling and other costs that are in addition to duties and taxes, but it can be quite expensive.
Shipping DDP allows a company to calculate and collect all duty and tax costs up front and post them on your transaction so the customer knows exactly what the total charges are before placing an order or checking out. This largely eliminates consumer frustration that leads to a poor customer landed experience.
By offering a DDP shipping solution, a company creates a unique delivery experience for the customer by eliminating any unpleasant delivery surprises.
How can Crossborderit help me ship my products with DDP?
Crossborderit (CBIT) calculates and collects duties, taxes and all other fees at the time of departure, resulting in an easy flow of packages and satisfied customers willing to buy a seller's product again.
CBIT guarantees payment of applicable duties, taxes and fees in advance, and reduces the total cost of customs fees by eliminating the need for customs collection from the consumer along with any necessary package storage until all fees are paid.
Don't surprise your customers with additional costs for products they already paid for, use DDP shipping and create a true shopping experience for your customers.