What is DDP Shipping and Why Do eCommerce Businesses Need It -

Projections show that the global eCommerce logistics market will reach $1.902 trillion by 2030.

All eCommerce businesses need to handle a range of business processes. For example, once a customer
orders, you must ensure a suitable shipping process to send your products to customers quickly and
efficiently.

DDP shipping is one of the options, and depending on the needs of your business, it might be the best
method available. So what is DDP shipping, and should your business use it?

Keep reading to find out.

What Is DDP Shipping?

There are several types of eCommerce shipping, each with different benefits. DDP (Delivery Duty Paid)
shipping is where the seller is responsible for all elements of the buying process.

This includes a range of aspects such as:

Providing and delivering goods
Fulfilling customer requirements
Arranging all packaging
Overseas customs clearance
Arranging proof of delivery
Creating sales documents and contracts
Paying all fees (delivery costs, transportation, etc.)

When an eCommerce business offers DDP shipping, they need to estimate all associated costs in
advance. This is because the seller is charged for them when they purchase a product, so you want to
ensure you’ve factored these costs in.

The Difference Between DDP and DDU

The alternative to shipping DDP is shipping DDU (Delivery Duty Unpaid). For this, the seller is responsible
for some of the associated costs and the buyer for the rest.

As the seller, it’s your job to ensure the order reaches the customs office of the delivery country (for
international orders), and you’re responsible for all costs and risks up to this point.

The customer pays for the cost of the order and the shipping. They’re then responsible for fees at
customs, such as import tax and further transportation costs.

DDU is generally a more accessible option for eCommerce businesses, but it can be detrimental. For
example, customers don’t want to worry about unexpected fees when a product arrives in their country.

There can also be delays at customs which will lower customer satisfaction. This is especially true during
peak shipping season when people may be in more of a rush to get packages, and more items being
shipped can further slow things down.

As an eCommerce business, customer satisfaction is crucial. Because of this, DDP in shipping is often
the better option.

Benefits of DDP Shipping

Many modern businesses opt for DDP shipping. Your business may do the same, and various benefits
come with it.

Sales

Perhaps the most significant benefit of DDP shipping in terms of the customer’s perspective is that it can
significantly increase customer satisfaction.

Hidden fees are one of the worst things that can happen when ordering products online. When this
happens due to using DDU shipping, it will quickly drive most customers away, and they’ll start shopping
with your competitors instead.

By using DDP, you can eliminate the risk of this happening. You can also highlight it on your website to
show your customers they won’t be hit with unexpected charges.

Optimized Checkout Experience

Anything you can do to make the buying experience easier for your customers will lead to more sales. One
thing that can slow the process down is confusion – if customers aren’t sure how much they need to pay
for something, they’ll likely hesitate.

With DDP shipping, you can clearly state all fees upfront. This will prevent confusion, and customers
appreciate transparency, which isn’t as present with DDU shipping.

Improved Customer Relationships

DDP shipping typically leads to higher conversions and fewer customer support issues. This is because
many customers aren’t aware of what DDU shipping means, so they are likely to be upset when they’re hit
with additional charges, and they’ll consider the seller responsible.

Sometimes, customers will be dissatisfied with these extra costs and simply reject the package. For the
seller, this means a financial loss and will probably be followed up with emails or phone calls from the
upset customer. It can also result in negative reviews, likely to turn friends and family away from the
buyer’s brand.

Successful eCommerce fulfillment is much easier with DDP shipping, as customers know exactly what to
expect. Customers are happier, which is a plus for any eCommerce business.

Competing With Big Brands

For a small business, it can be challenging to make progress when trying to compete with large global
brands.

The biggest companies use DDP shipping, so doing the same will help you get closer to their level.
However, you can also use other practices, such as demand forecasting, to help make your business more
productive and get some edge.

Easy to Use

Some business owners worry that the extra responsibility involved with DDP shipping means extra work,
but this isn’t necessarily the case. Working with an external shipping company can result in less work.

ACI Logistix is a small parcel shipping and logistics company. With our help, you can quickly provide fast,
reliable DDP shipping to your customers. This will ensure maximum customer satisfaction without you
having to worry about extra resources being used to deal with the various aspects of shipping.

Help With Shipping and Logistics

DDP shipping is almost always a better solution than DDU shipping as it helps get products to your
customers faster, and they won’t end up being hit with unexpected fees.

ACI Logistix can help with various operations, such as order fulfillment and supply chain management. To
find out more about our services, contact us today

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