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What Does DDP Mean? Delivered Duty Paid Shipping Explained
February 2023, 02

Delivered duty paid (DDP) shipping is a type of delivery where the seller takes responsibility for all risk and fees of shipping goods until they reach their destination. Mainly used for international shipping, DDP is a common shipping method developed by the International Chamber of Commerce which helps to standardize shipping options throughout the world.

What is delivered duty paid (DDP) shipping?

Delivered duty paid (DDP) shipping is a delivery agreement between buyers and sellers that places the risks and responsibilities of transportation on the seller until the buyer receives them. With DDP, buyers are not liable for the actual shipping costs, making them more likely to purchase products without fear of being scammed or having to pay high taxes. DDP shipping is used to protect the buyer, as well as hold the sender responsible until the customer receives their product.

Why is DDP used?

Here are the top reasons sellers choose to use DDP shipping.

1.   To protect the buyer

DDP shipments help the buyers not get swindled.   Since the seller’s responsibilities assume all the risk and cost of shipping products, it’s in their best interest to make sure customers actually receive what they ordered.   The time and cost associated with DDP shipping are too big of a burden for scammers to even consider using it.

2.   To ensure safe delivery to the place of destination for international trade

So much can go wrong when exporters ship packages halfway around the world.   Every country has its own laws regarding transport, import duties and shipping fees.   DDP makes the seller become diligent on only sending packages on the best and safest routes.

3.   To ensure safe delivery by sea or air freight

Depending on the type of product and where it’s sold, safe delivery by air or sea can be difficult.   DDP is essentially a shipping agreement that ensures sellers don’t take the money and run. .

4.   To hold sellers responsible for international fees

If a buyer has to pay customs fees, there’s a chance the sale won’t happen because they don’t know the cost of these fees.   With sellers and shippers paying international fees, DDP allows for a smoother purchasing experience because the buyer doesn’t have to worry about paying the fees. 

By Joe

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