DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) is an Incoterm where the seller assumes maximum responsibility for a shipment, covering all costs and risks associated with delivering goods to the buyer's specified destination. This includes transportation, insurance, export/import clearance, and all duties and taxes. Under DDP terms, the buyer's only responsibility is to unload the goods at the final destination, making it the most seller-friendly delivery arrangement.

Why it matters for e-commerce brands

For Shopify and DTC brands selling internationally, offering DDP shipping creates a seamless customer experience by eliminating unexpected customs fees and delivery delays at the border. This transparency in final pricing reduces cart abandonment and customer complaints, as buyers know the exact total cost upfront. DDP is particularly valuable for brands expanding into markets like the EU or UK, where customs duties can significantly impact customer satisfaction and repeat purchase rates.

Example

A Shopify store based in California sells premium skincare products to customers in Germany. By using DDP shipping, the brand calculates and displays the full delivered price including €15 in VAT and €8 in customs duties at checkout. The store partners with a logistics provider who handles customs clearance in Germany, pays all fees on behalf of the customer, and delivers directly to the customer's door in Berlin. The customer receives their package without any surprise charges or customs delays, resulting in a smooth delivery experience and positive reviews.

Related terms

• DAP (Delivered at Place)
• Incoterms
• Customs duties
• Landed cost
• Import taxes and VAT