 |
| DDP & DDU Shipping in Ecommerce |
When it comes to ecommerce, you need to familiarise yourself with all the concepts and terminology so that you can improve your business, satisfy your customers and improve your bottom line. In today’s day and age, many people have opened online stores but do not know the best way to run them which could be holding them back. One area where many ecommerce store owners struggle is international shipments and the difference between DDU and DDP - read on to find out everything that you need to know.
What is DDU & DDP?
DDU stands for Delivery Duty Unpaid and means that the receiver (customer) of the package will be contacted by customs once the shipment has arrived at customs to settle any charges after which the package will be released and delivered to the customer. As you might guess, DDP stands for Delivery Duty Paid and means that the sender is responsible for paying duties but often these duties will be included in the price so that the customer pays at the same time that they place their order.Charges
These charges are in place because every country has their own rules, regulations and taxes for the importation of goods and it is important to be aware of these as an ecommerce store owner when you ship parcels internationally. If you decide to use DDU for your store, it is essential that you communicate to the customer that there will be duties to pay once the shipment arrives at customs and failure to do this could negatively affect your customer experience and brand reputation.Using DDP
Generally, it is best to opt for DDP so that there are no nasty surprises and for convenience. DDP shipments will cost more upfront and many couriers will process the payment to customs on your behalf for an additional fee, but these usually work out to be much cheaper than DDU brokerage fees which will help to save money and also means that there is not the extra stage of customs having to contact the customer to collect an additional fee. Additionally, there is less chance that the customer will abandon the order at customs which would see you lose the sale and have to pay if you want the product returned.It may seem like a small detail, but there is a huge difference between DDU and DDP when it comes to ecommerce and choosing the right option could have a big impact on the success of your business. Generally, DDP is the way to go as it is more straightforward, it ensures that there are no unexpected fees and will provide a simple delivery experience for customers.
