Why Should Your E-Commerce Business Implement Delivered Duty Paid?

Why Should Your E-Commerce Business Implement Delivered Duty Paid?

  • Avatar photo by Best Inc.
  • 30/08/2020

Here's a scenario for you to consider: An awesome product was just ordered by one of your customers. Let's say, for the sake of argument in fact, that they've ordered a number of those items. Unfortunately, they are international. Well, that might not seem like a particularly troublesome aspect… or is it? When the consumer gets hit with "duties", they're not going to be happy. Duties can complicate what would have and should have been a simple transaction. But, when you're dealing with international e-commerce, it's just one of the intricacies.

Why Should Your E Commerce Business Implement Delivered Duty Paid

Thanks to DDP, this doesn't have to be a problem. If you are involved in e-commerce, you've likely heard of DDP – delivered duty paid. If not, it's high time you become familiar with it and see that it is a much-needed aspect of businesses that participate in and revolve around e-commerce. Let's take a look at DDP.

DDU Versus DDP

Delivered duty unpaid – DDU – splits responsibility between the buyer and the seller.

The seller:

  • Assumes costs and risks associated with the shipment.
  • Ensures delivery of the goods to the customs office of the destination’s country.

The buyer, at checkout:

  • Pays for shipping.
  • Pays for the cost of their order.
  • Before they can receive their package, once it reaches customs, the responsibility of paying any additional transportation costs or import duties is up to the buyer. Now let's look at DDP.

As already stated, delivered duty paid can be abbreviated DDP. Some people substitute the word "duties" for "duty". But what does it mean? It means that for every buying process aspect, the seller is responsible. Included in this are the following:

  • Paying delivery costs, transportation costs, and all other associated fees.
  • Proof of delivery arrangement.
  • Customs requirements fulfillment.
  • Arranging all export clearance and export packaging.
  • Documents and sales contracts drafting.
  • Providing the product(s).

When this route is chosen, at checkout, the buyer is charged for the following:

  • Shipping
  • The cost of the order
  • Other shipment/delivery-incurring fees

What does that mean for you as a seller? In order to factor them into the final cost, in advance, you're going to have to estimate the fees as accurately as possible.

DDP benefits

Now that you're aware of the differences between DDP and DDU, let's take a closer look at the specific reasons to use delivered duty paid:

  • Rest assured, your competition is using DDP. If you don't, you could be left in the dust.
  • The checkout experience is optimized with DDP.
  • The use of DDP can help increase sales dramatically.
  • Best of all, there is just no reason to avoid the use of DDP when it's so very simple.

That leads us to who you can depend on to assist with your DDP order fulfillment.

Rely on Best Inc. As Your Fulfillment Provider

Whether you ship your products over long distances or short distances, if you're crossing borders or bodies of water, we can be of assistance. Offering a comprehensive selection of shipping options, we are the perfect operations partner. Are you searching for a low cost delivery method? Are you trying to achieve fast delivery times? Maybe a little of both? To manage your transportation needs across borders and oceans, we offer indispensable results.

Contact Best Inc. for quotes and to find out how we can best support your business.