DDP v DDU and Why You Need to Know before Selling Internationally

eCommerce, Cart Checkout, Shipping, Retailers, Value Added Tax, Duty Fees, DDU shipments

For international shipments there are two types of shipping to consider: DDP and DDU. DDP means delivery duties paid and DDU means Delivery Duties Unpaid. In DDP shipments, the seller is responsible for payment of the duties and taxes for delivery to the buyer or customer. Customs brokerage and clearance is charged to the seller as opposed to the buyer when the item is imported in a foreign country.

For DDU shipments the buyer is responsible for the payment of duties and taxes. Customs brokerage and clearance is charged to the buyer by the local country once the item is imported. Generally, the customer is contacted once the order arrives in country and the customer needs to pay these additional fees before the item will be released for delivery.

For international customers the uncertainty of additional fees upon delivery can lead to a frustrating buying experience. If the shipping method doesn’t clearly state during purchase if duties and taxes will be the buyer or seller responsibility there can be surprise fees upon delivery to your international customer. Value Added Tax (VAT) and Duty fees are charged based on the different country’s import/export rules and the type of commodity. These additional fees range from around 20-30% of product value to a much larger fee of around 100% additional cost in some markets like Brazil.

Anyone who’s shipped internationally DDU has felt the reality of these surprise fees upon delivery and their effect on the international customer experience which often results in abandoned packages and irate international customers. The seemingly simple expansion internationally can get a lot more complicated quickly when you’re doing damage control on all your outbound international shipments.

SkyBOX Checkout solves all the typical barriers retailers face when expanding sales overseas including DDP shipping and customs clearance. SkyBOX Checkout provides a full landed cost calculation to 200 + destinations eliminating the surprise fees upon delivery to international customers. SkyBOX Checkout is free to set up and there’s no risk or disruption to your current operations. Contact SkyBOX Checkout to learn more about DDP, DDU and everything else in between to get started successfully selling internationally: www.skyboxcheckout.com; info@skyboxcheckout.com or 786-265-4821.