Shoppers push back on DDP fees when the duty and tax line appears late in checkout, looks high next to the product price, or reads like a vague estimate. The fee itself is rarely the real problem. Paying duties at checkout is still far better for the shopper than a carrier bill on delivery. The fix is to show the landed cost earlier, explain it clearly, or build it into the price so there is no separate line to object to.
Calculate duties and taxes as soon as the shopper enters a destination, so the total does not change at the last click. See Managing your checkout.
Show shipping, duty, taxes and fees as separate lines. Shopify Plus merchants can add the Cost Breakout checkout extension.
With Localized Market Pricing, shoppers see one all in price in their own currency, with shipping, duty, tax and fees already included. There is no extra line to push back on.
Use a guaranteed landed cost rather than an estimate, so the amount at checkout is the amount the shopper pays. Learn how our Landed Cost Engine works.
For priority markets, use conversion optimization rules to adjust what the shopper pays for shipping and landed cost.
A short line such as "Duties and taxes included. Nothing to pay on delivery." near the price answers the question before it is asked.
Without DDP, the order ships DDU and the carrier collects duties and taxes from your customer on delivery, often with its own handling fee on top. Shoppers who refuse to pay leave you with a returned parcel and a lost customer. DDP moves that cost to checkout, where you can explain it, include it or adjust it.
Check the HS code, country of origin and declared value on the product first. A wrong classification can apply a higher duty rate. Also remember that many markets charge import tax on the goods plus shipping.
Both work. All in pricing usually feels simplest to shoppers. A separate breakdown works well when your domestic price is well known and you want to show why the total differs.
The shopper sees one final amount and knows nothing more will be collected on delivery. That removes the fear of paying twice.
Questions about your checkout setup? Contact your FlavorCloud account manager.