What is Delivery Duty Paid (DDP)? Learn the Advantage of DDP
Author: John Wylie
Delivery Duty Paid (DDP) means that the e-Commerce merchant pays all value-added tax (VAT), duties, and customs clearance associated with an international shipment, passing that cost on to the e-Commerce customer upfront. These merchants can transparently communicate these additional costs to the customer at checkout, where they can then collect payment.
The Advantage of Delivery Duty Paid
DDP solves many of the problems e-Commerce merchants and customers face with international shipping.
First, DDP navigates customs clearances upfront and does not require fees to be paid by the customer to customs, reducing lag time and streamlining the shipping process.
Second, DDP leverages parcel carriers versus postal services. Carriers typically expedite shipping based on a variety of factors in partnership with the e-Commerce merchant, reducing delivery times and placing more control in the hands of the e-Commerce merchant.
Third, most e-Commerce brands need visibility and transparency in the shipping process, especially with higher-value products. DDP ensures a transparent, trackable process for the U.S. brand and the international customer via technology integrations from the cart level through to the parcel carrier. Additionally, DDP provides customers’ flexibility with delivery options. Consumers can have flexibility regarding delivery attempts and delivery location, making for a more convenient process.
Lastly, since the buyer can see the total landed cost (all duties, taxes, and associated fees) in the shopping cart, there are no surprise fees waiting for them once the parcel arrives in-country. The merchant can calculate value-added tax (VAT) based on the destination country’s regulatory requirements via their technology integration, and customers will not have to worry about any unexpected calls from customs. This process drastically reduces cart abandonment and returns while boosting customer satisfaction.
In short, DDP provides faster transit times and more accurate delivery estimates while enhancing the customer’s overall experience. Via en-route tracking, the e-Commerce merchant and customer can both see the location and status of the package, through the destination gateway, customs clearance, and final mile delivery.
Where GEODIS MyParcel Can Help
GEODIS MyParcel makes it easy for U.S. domestic e-Commerce brands to go global. Our small parcel shipping service currently ships to 27 European countries, Great Britain, and Canada with guaranteed delivery in 4-6 days. How do we do this? By leveraging our parcel expertise, e-Commerce experience, deep understanding of global customs clearance processes, and integrated technology.
Now that you understand the advantage of DDP, we can help you strike the balance between speed of delivery and total landed cost. We offer an end-to-end global transportation network and a fully integrated digital platform to make DDP a breeze for you and your customers. You can rely on our many years of e-Commerce experience to implement. Learn more about what GEODIS MyParcel can bring to your e-Commerce business today by contacting us today.