DDU shipping has no processing fees on top of the required duty and thus may seem to be a cheaper shipment option at checkout. But it is the sender’s responsibility to inform the customers that the duties will apply when the goods arrive in customs. Any miscommunication could lead to angry customers.
Most of the time, customers are not even aware they need to pay for duties. It often becomes a surprise when they receive a call from customs requesting payment. In fact, it can negatively affect your customer experience. Even worse, it may become more expensive when customs forward the shipment to an independent customs broker who may add storage, late payment, and brokerage fees. Independent customs brokers have different fee structures; thus, it is nearly impossible to establish what the final cost will be.
DDP shipment may be more expensive upfront since express couriers charge an additional fee to process payments to customs on your behalf. However, the fee may be several times lower than DDU brokerage fees and are also fixed.
Some couriers can even pay additional fees in advance on your behalf, ensuring that the clearing at the customs and delivery happens without the customs having to reach out to your customer and directly collecting the additional fees.
Sometimes, customers may decide to abandon the shipment in customs, especially when they encounter additional fees they never expected. DDP shipping helps curb such incidents since you may lose your product, sale and even pay extra fees if you want the shipment back. Therefore, DDP shipping remains the best for a smoother delivery experience.
