From DDU to DDP
The Evolution
How global trade terms evolved to shift risk from the consumer to the merchant
1888 - 2000s
- Shipping across borders out of the United States originated in 1888. Postmasters in a few Eastern cities provided large boxes for the deposit of newspapers, packages, and other oversized mail. In 1890, such "package boxes" began appearing on city streets nationwide.
EARLY 2010s
- DDP shipping is born. DDP shifts the burden of paying duties and taxes from consumers to merchants.
- Companies like Pitney Bowes and Borderfree are born to power these early DDP experiences.
- Merchants were equipped with ‘estimated’ duties and taxes information – actual costs from customs hit them post delivery.
LATE 2010s
- Guaranteeing all duties, taxes in checkout increased trust with consumers which lifted conversion and global sales growth.
- DDP consolidation network models gave way to orchestration models powered by next-generation, carrier independent cross border companies like FlavorCloud.
- Omnichannel, cross border eCommerce growth accelerates fueling the need for global B2B wholesale solutions.
EARLY 2020s
- A surge in global ecommerce coupled with a COVID-induced need to diversity supply changes accelerated demand for B2B air freight.
- FlavorCloud becomes first-to-market to provide an all-in-one B2B guaranteed DDP shipping solution powered by a multicarrier air freight network.
Today
- Merchants want a single invoice provided by a single partner to handle all DTC and B2B cross border shipping, compliance and risk. For all countries – outbound and returns.
FlavorCloud Powers DTC & B2B
DTC
For DTC e-commerce brands looking to expand their reach internationally, FlavorCloud helps simplify cross-border logistics, offering features that are particularly valuable for direct-to-consumer models.
B2B
Whether it's handling bulk orders, managing multiple destinations, or navigating international regulations, FlavorCloud offers a comprehensive solution to ensure smooth and reliable B2B shipping.
RETURNS
FlavorCloud offers a robust set of tools to help businesses manage the entire returns process with ease. From generating return labels to handling complex customs and duties issues, the platform can ensure smooth logistics.
DDU vs DDP
DDU means the consumer pays for duties and taxes. DDP means the merchant pays for duties and taxes.
Consumer pays
duties & taxes
Delivered duties unpaid (DDU) means the buyer is responsible for paying the duties, taxes, and fees required for the shipment to clear customs. The buyer can refuse the delivery and then the burden is on the seller to return the shipment or have it destroyed in-country.
Buyer only pays for shipping costs at checkout
Unexpected fees due at delivery
Higher risk of customs delays and poor customer experience, contributing to more support tickets
Increased risk of packages being refused or rejected on import, cutting into margins for sellers
Merchant pays
duties & taxes
Delivered duties paid (DDP) means that all duties, taxes, and fees are paid by the merchant and collected at checkout. The seller is responsible for paying transportation costs, handling customs clearance and fees, and ensuring the order is delivered.
Clear and comprehensive pricing at checkout
No hidden or surprise fees at delivery
Faster customs clearance and seamless customer experience
Improved conversion rates at checkout for a smoother, more efficient purchasing experience
Elevate your
business with Guaranteed DDP
business with Guaranteed DDP
Are you ready to provide your international customers with a buying experience that feels as seamless and delightful as domestic?
Access our white glove service to help answer any questions.
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