Understanding DDU and DDP in ShipHero

The Basics of B2B Shipping

Manufacturers and wholesale providers typically ship using Delivered Duty Unpaid (DDU), based on how their products are classified and valued. Express carriers have simplified this by building direct relationships with regular buyers, making customs clearance more predictable.

The Typical Business to Consumer Shipper

B2C sellers serve a wider, more varied customer base ordering a broad range of products with no predictable schedule. Unlike B2B, each shipment is unique and volumes are high, making customs clearance significantly more complex.

The Amazon Effect

Amazon Prime has set the expectation that orders arrive quickly and cheaply — and customers now apply that same standard to international shipments. This puts real pressure on cross-border sellers, since every country has its own rules around product values, quantities, and import restrictions, and those rules change frequently.

Understanding Delivery Duty Unpaid (DDU)

With DDU, the buyer is responsible for all duties and taxes upon delivery. It's the most common B2C shipping method, but shipments often move through customs more slowly, and unexpected charges at delivery can hurt the customer experience.

Understanding Delivery Duty Paid (DDP)

With DDP, the seller covers all duties, taxes, and import costs upfront. The buyer receives their order with no surprise fees, resulting in a faster and more seamless delivery experience.

The trade-off is that sellers absorb these costs. For businesses with a focused product catalog, duties are easier to predict and manage. For sellers with large or varied catalogs, costs become harder to control as country-level regulations change.

The Takeaway

Knowing the import rules for each country you ship to is essential. DDU is generally the better choice for high-value shipments. DDP delivers a superior customer experience but means the seller absorbs duties and taxes — a trade-off worth weighing carefully when expanding internationally.