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APC Int’l Shipping: DDP vs. DDU

Diana Zheng
  •  
April 12, 2022

Check out our full interview by clicking here.

Speakers:

Diana Zheng – Head of Marketing

Marc Zazeela – eCommerce Growth Creator – https://www.apc-pli.com/ 

As an eCommerce owner building a good name in the global market, you know there’s no chance of escaping tax and duties. The process is a chore, but with a clear understanding of Delivered Duty Paid (DDP), Delivered Duty Unpaid (DDU), and the tracking process, you can decide which works perfectly for your business setup and your international customers’ convenience.

Let’s dive in with the difference between DDP and DDU with Diana Zheng, our Head of Marketing and Marc Zazeela, the eCommerce Growth Creator for International Shipping and Mailing at APC Postal Logistics.

Who is APC Postal Logistics?

Founded in 2001, APC Postal Logistics is a leading consolidator and distributor of international parcels and mail that provides a full range of shipping and mailing solutions to volume mailers and eCommerce clients. 

Now, the renowned carrier can fully track shipments going to over 185+ countries around the world. 

Tracking: why is it important?

International shipments transfer from multiple carriers and sorting hubs before arriving at the local post office for delivery to the recipient. This makes tracking vital for online stores to succeed in the international market. Not only that, but it also helps build trust between the seller and buyer.

DDP vs. DDU

These two delivery agreements relate to the import fees, duties, and taxes that everyone is subject to. This fee applies to importing products into the country. 

  • DDP – Delivered Duty Paid

This agreement preference is highly recommended for both the online seller and the buyer (recipient). The taxes and duties are paid upfront—therefore, the recipient can have their shipment dropped off upon delivery and the cost is more transparent. No surprise fees to be paid at the door!

DDP is also often lower in cost than DDU since it’s a different carrier. Consider that local post offices charge a service fee for the collection of duties and taxes to the recipient as well. This causes more hurdles for your customer to receive their package, in addition to a higher cost altogether. 

Ultimately, the final mile delivery is not just limited to the local post office. Expect faster delivery times, lower costs, and more transparency for both the buyer and online seller with DDP.

  • DDU – Delivered Duty Unpaid

The local post office is responsible for collecting the duties and taxes upon delivery. The recipient’s shipment cannot be dropped off until these fees are paid. For your buyer, this often implies the need to visit the nearest post office to pay the fees and pick up their package. 

*****

For an in-depth explanation of the topic, watch our latest educational video on Understanding International Shipping with APC Postal Logistics. You may also visit APC’s official website and our Update on International Shipping blog to learn more.

*****

Did you enjoy this conversation with our shipping experts?

Leave us a comment on our YouTube video or send us an email at [email protected] to let us know your thoughts and suggestions for future content!

You may also read up on more relevant shipping terms to further boost your knowledge.

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