What is DDP Shipping?

What is DDP Shipping and Why Do eCommerce Businesses Need It?

So a customer has just ordered one of your awesome products. Even better—they’ve ordered a bunch of your awesome products. The thing is, it’s an international order. That may not seem like a problem until your customer is hit with duties and taxes. What was once a simple transaction becomes much more complicated because the intricacies of global eCommerce now come into play. Luckily, these complexities can be easily worked through thanks to the wonders of DDP shipping.

Continue reading  to learn how DDP shipping can help you increase conversion rates, create a better customer experience, minimize costs and risks, and simplify international orders once and for all.

What is DDP Shipping?

DDP is an acronym for Delivered Duty Paid. DDP shipping means that in the buyer-and-seller relationship the seller is responsible for every aspect of the buying process. This would include:

  • Providing and delivering ordered goods
  • Drafting sales contracts and documents
  • Arranging all export packaging
  • Overseeing customs clearance 
  • Fulfilling customs requirements
  • Arranging proof of delivery
  • Paying all associated fees, such as transportation and delivery costs

If you (as an eCommerce business owner) opt for DDP shipping, the customer is charged at checkout for the price of their order, the shipping rate, and any other additional costs that may be incurred during the delivery process. This would require you, the seller, to estimate these fees in advance and factor them into the checkout price.

What’s the Difference Between DDP and DDU?

DDU is an acronym for Delivered Duty Unpaid. Here, the responsibility of shipping costs is split between the buyer and the seller. The seller ensures that the goods are delivered to the country of destination’s customs office and absorbs any costs and risks associated with the shipment until it reaches the country of destination. This means that at checkout the buyer only pays for the cost of their order plus shipping. Once the order reaches customs, the buyer is now responsible for paying any import duties and/or transportation costs before they can successfully receive their package.

While DDU may seem like the simpler route for eCommerce business owners, it’s also a surefire way to upset international buyers by hitting them with unexpected costs and potential delays at customs. If you’re not yet convinced, take a look at the infographic below (also featured on ShipMonk’s DDP fulfillment services hub) and you’ll soon see why DDP is the better way to go.

The Difference in Customer Experience: DDP vs. DDU

What Are the Benefits of DDP Shipping?

#1 Sales

Put yourself in your customers’ shoes. No one wants to be surprised with hidden shipping costs and fees that dramatically increase the price of their original order. In fact, this can turn away your customers and lead them straight into the consoling arms of a store that actually offers the item(s) they’re looking for without added delivery premiums or stress.

The barrier of international duties and fees is just that — a barrier. Once it’s knocked down, shopping at your online store will be like shopping anywhere else… a scenario that appeals to all prospective buyers.

#2 Optimized Checkout Experience

You know what’s also conducive to increased sales? Easy checkouts. In addition to following the Checkout Commandments, clearly stating international duties and fees on your checkout page leaves no room for confusion and helps address cost-related questions before they’re even asked. It also gives off the impression that your store is transparent and knowledgeable, which customers, especially international ones, will appreciate. 

#3 Improved Customer Relationships

Brands that implement a DDP landed cost solution reduce customer support issues by a whopping 60% and see 30% higher conversions. This just makes sense. It’s only natural for customers to be dissatisfied when they’re notified that their package is at the post office or port awaiting additional payments. In some cases a customer may even reject the package altogether, rather than abide by extra fees and hassle. That would cost you (the seller) a financial loss, plus a major headache to your support team because poor customer experience often goes hand-in-hand with angry emails, calls, social media posts, and worst of all, public negative reviews. No eCommerce business owner wants to deal with that, and risk their precious social proof.

#4 A Chance to Compete with the Big Dogs

Amazon, Target, and Gap are just a handful of global brands that employ DDP shipping in their international shipping strategy. By doing the same, you’ll legitimize your business by leveling the playing field and allowing it to stand a chance against the seasoned pros.

#5 It’s Too Easy Not to Use

You don’t have to do all the hard work yourself. Selecting a trustworthy shipping provider will eliminate the hassles and headaches that come with international shipping, as they’ll be able to help calculate the rates and fees of your international orders. Even better, leave it to the experts by partnering with a 3PL fulfillment company like ShipMonk. Between our state-of-the-art technology, and international shipping experience, DDP comes second nature to us, and can for you too!

If your products are available internationally, DDP shipping is a no-brainer when it comes to upgrading your supply chain strategy and taking your customer experience to the next level. No one wants to deal with paying for more than what they’ve ordered, especially in a way that’s often inconvenient and cumbersome. DDP shipping eliminates that problem while also deepening the sense of trust between seller and buyer. That’s a win in our book!

Try DDP ASAP

ShipMonk has helped many thriving businesses scale to the global marketplace. When you work with our 3PL fulfillment company, there’s no additional cost to ship internationally and we provide customs assistance. Our 3PL fulfillment team also helps with paperwork, and all other logistics you shouldn’t have to worry about as you manage your growing global empire. Hence our motto, at ShipMonk we help eCommerce business owners: Stress Less and Grow More!

If you’re ready to get started with a 3PL fulfillment company that gets ship done, we recommend heading over to our DDP Shipping Hub. There you’ll find information that will make implementing DDP shipping a breeze. And, if you have any questions, don’t hesitate to contact us. We’re always happy to help eCommerce business owners take that next step.

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