DDU vs. DDP
Win More International Orders at Checkout
DDU leaves your customer to pay import duties at the door. DDP means you collect them at checkout, so the price they see is the price they pay. Which one you use decides whether an international order converts, clears customs, or comes back.
Andrew orders a cotton T-shirt from your store. He lives in Germany. You ship it Delivered Duty Unpaid (DDU).
He pays €42 for the shirt and €8 shipping. €50 total. Duties are never mentioned.
Customs assesses import duty and VAT. The carrier adds its own handling fee on top.
The courier asks Andrew for €13 before handing the parcel over. Nobody told him to expect it.
He pays reluctantly, or refuses. You lose the revenue from this order and you lose a repeat customer.
Same Andrew, same T-shirt, same destination. This time you ship it Delivered Duty Paid (DDP).
He sees €42 for the shirt, €8 shipping and €13 duties and taxes. €63, all in, before he pays.
Duties are already paid and the paperwork was filed ahead. The parcel clears without anyone contacting him.
The courier hands it over. Nothing owed.
The order cost exactly what he agreed to pay. He orders again.
