Foundation · 2 min
What you need to know
What does DDP mean in ecommerce shipping?
DDP means Delivered Duty Paid under Incoterms 2020: the seller bears the stated delivery obligations and handles import clearance and import duties or taxes under the rule.
What does DAP mean?
DAP means Delivered at Place: the seller delivers to the named destination, while the buyer handles import formalities and associated import duty and tax.
DDP vs DAP: what’s the difference?
Under DDP, the seller handles import clearance and import charges; under DAP, the buyer handles them. Both require a named destination and careful confirmation that the chosen party can legally perform its obligations.
Should ecommerce merchants use DDP?
Use DDP only when the merchant can support import registration or representation, classification, landed-cost calculation, carrier process, and reconciliation. Customer convenience does not remove seller complexity.
How does DDP affect checkout pricing?
DDP pricing should include or clearly account for the merchant-paid duty, import tax, brokerage and related delivery costs before order placement. Reconcile estimates with actual import charges.
Why are customers being asked to pay fees at delivery?
The shipment may be DAP or another duty-unpaid arrangement, or the declared value and charges may differ from the checkout expectation. Review the order promise, customs entry and carrier invoice.
A quick store check
Compare one DDP and one DAP checkout and verify the customer sees who pays import charges before purchase.
Foundation · 2 min
Frequently asked questions
Is DDP always better for conversion?
It can reduce surprise, but only if the merchant can lawfully and accurately execute it.
Can DAP be described as free of extra charges?
No. The buyer may owe import duty, tax or handling before delivery.