It will certainly help you to reassure international customers and provide them with a smooth, stress-free buying experience.īut, what are the other advantages of DDP? Let’s take a look… Lower risk ![]() The advantages of delivery duty paidĪs we’ve just seen, there are plenty of good reasons why DDP is used. In other words, DDP makes buying something from an international eCommerce store a much smoother and pleasant experience. Not only are extra charges a sting, but the fact that a customer has to make a trip to a post office or depot, and also experience a delay in receiving their item makes the whole experience a sour one.ĭDP ensures the types of things we’ve just described don’t happen. What they don’t want is to have to go to the post office and pay an exorbitantly expensive customs fee or import duty. They want to be able to click ‘add to basket’ and have it arrive at their doorstep sometime later. Say someone wants a coat that they’ve spotted online. It provides a smooth buying experienceįrom a consumer’s perspective, the less they have to do, the better. If the item does turn up damaged, then it’s the sellers responsibility to rectify the situation. It’s up to the seller to ensure that the item they are shipping – be it by air or sea – arrives in perfect condition. ![]() If you’re a consumer and you’re thinking about ordering something from another country, you may be a little worried if it will actually reach you in one piece or not. Because DDP is an internationally-recognised form of shipping agreement, your customers will be confident that they’ll actually receive the item(s) they’ve ordered. Using DDP also provides your overseas customers with reassurance. It protects your customersĭDP shipments ensure that the people buying your goods in other countries won’t suddenly find themselves with some nasty surprises (like having to pay a customs charge on top of what they’ve already paid for the item). But, there are many good reasons why it does get used. Why is DDP used?Īs you’ve just read, there’s quite a lot for a seller to do under the terms of DDP. Take responsibility for VAT charges and any costs associated with delays etc.īecause of the additional work that is associated with DDP shipments compared to other types of shipment, it’s mainly used for higher-value items and goods (typically £25 or higher).Take responsibility for arranging all shipping as well as the costs associated with export clearance and customs documentation.Take all responsibility for the shipping of a good until it reaches the agreed-upon destination.you or the freight company that you choose) takes responsibility for all of the fees and risks associated with shipping an item.ĭDP is what’s known as an ‘Incoterm’, which is a pre-defined commercial term which was developed by the International Chamber of Commerce in order to help standardise shipping options when you’re shipping something from one country to another. Delivered duty paid (also referred to as delivery duty paid), is a type of shipping whereby the seller (i.e. Let’s begin by defining what DDP actually is. ![]() But perhaps you’re wondering what exactly it is? And, why is it used? If you want the answers to those questions and more, then keep reading… Delivered duty paid definition The seller is responsible for all costs and risk until the goods are unloaded.If you’re an eCommerce business that’s starting to explore the option of offering international shipping, then you may have come across the concept of delivery duty paid (DDP). In countries with complex or bureaucratic import clearance procedures a seller with local knowledge may prefer to take on these responsibilities. These last requirements can be problematic for the seller. The buyer is free of any risk or cost until the goods are unloaded from the vehicle at the named place of destination, usually the buyer’s place of business.ĭDP is the only Incoterms rule that places responsibility for import clearance and payment of taxes and/or import duty on the seller. The seller is not obligated to insure the goods for pre-carriage or main carriage. The seller must pay both export and import formalities, fees, duties and taxes. ![]() Under the Delivered Duty Paid (DDP) Incoterm rules, the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. Incoterms DDP: Delivered Duty Paid Named Place Required: Place of Destination
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