DDP Shipping for Shopify Merchants

Show your international customers the full price — duties, taxes, and shipping — at checkout with Delivered Duty Paid. Stop surprise customs charges and abandoned carts.

What is Delivered Duty Paid (DDP)?

Delivered Duty Paid (DDP) is an international trade term (Incoterm) published by the International Chamber of Commerce. Under DDP, the seller assumes full responsibility for all costs and risks until the goods are delivered to the buyer's address — including export packaging, international freight, import customs clearance, import duties, VAT or GST, and last-mile delivery.

The buyer's only obligation is to receive the delivery. They pay one price at checkout — the price they saw when they placed their order — and nothing more. No surprise customs charges, no carrier fees at the door, no refused deliveries.

For Shopify merchants, offering DDP shipping is the single most effective way to improve international conversion rates. When customers see the full landed cost upfront, they can make an informed purchase decision without worrying about hidden fees.

Full landed cost at checkout

Duties, taxes, and shipping calculated before your customer buys.

No surprise customs charges

Customers see the complete price upfront — fewer abandoned carts.

Live carrier rates

Real-time shipping rates from UPS, FedEx, and DHL.

AI HS classification

Automatically classify your products with the correct HS codes.

DDP vs DDU: What's the Difference?

DDP (Delivered Duty Paid)

  • Seller pays all duties, taxes, and customs fees
  • Customer sees the total price at checkout
  • No surprise charges at delivery
  • Faster customs clearance (duties pre-paid)
  • Lower cart abandonment and return rates

DDU / DAP (Delivered Duty Unpaid)

  • Buyer pays duties and taxes on arrival
  • Customer may face unexpected fees after ordering
  • Carrier demands payment before releasing package
  • Higher cart abandonment and dispute rates
  • More refused deliveries and returns

What's Included in a DDP Price?

A DDP price at checkout includes four components:

  1. Product value — what the customer paid for the goods
  2. Shipping cost — carrier rate based on weight, dimensions, and destination
  3. Import duty — calculated from the product's HS code and the destination country's tariff schedule
  4. VAT or GST — applied to the product value plus shipping plus duty

Example: A $60 ceramic mug (HS code 6912.00) shipped to the UK with $15 shipping:

  • Product value: $60.00
  • Shipping: $15.00
  • UK duty rate (ceramics): 0%
  • UK VAT (20%): ($60 + $15) × 20% = $15.00
  • Total DDP price: $90.00

The customer sees $90. They pay $90. Nothing else is ever charged.

Why DDP Reduces Cart Abandonment

1

Higher conversion rates

Customers see the full price upfront — no sticker shock at delivery.

2

Fewer disputes

Eliminates chargebacks from customers claiming they weren't told about customs fees.

3

Faster customs clearance

Pre-paid duties mean packages clear customs quickly with fewer delays.

4

Lower return rates

Customers don't refuse delivery due to unexpected customs charges.

Frequently Asked Questions

What does DDP mean in shipping?

DDP stands for Delivered Duty Paid. It means the seller pays all shipping costs, import duties, taxes, and customs clearance fees. The customer pays one price at checkout and receives the package with no additional charges.

How does RateTell calculate DDP rates?

RateTell analyzes your products' HS codes, the destination country's tariff schedule, and live carrier rates to estimate the full landed cost. Estimates are shown at checkout before the customer buys.

What's the difference between DDP and DDU?

Under DDP, the seller pays all duties and taxes — the customer sees the full price at checkout. Under DDU (also called DAP), the buyer pays duties and taxes when the package arrives, often resulting in surprise fees and refused deliveries.

Is DDP shipping worth it?

For most Shopify merchants, yes. DDP typically increases international conversion rates by 15-25%, reduces cart abandonment, eliminates refused deliveries, and lowers customer support inquiries about customs charges.

Which carriers support DDP with RateTell?

RateTell integrates with UPS, FedEx, and DHL for live DDP rates at checkout. Carrier rates are compared automatically to find the best price for each shipment.

Do I need HS codes for DDP?

Yes. Accurate HS codes are essential for correct duty estimates. RateTell's AI automatically suggests HS codes for your products based on their title, type, and tags. You review and approve each one before it goes live.

How much does DDP shipping cost?

DDP cost depends on the product's HS code, destination country, declared value, and carrier rates. RateTell calculates the exact amount at checkout. Use our free duty calculator to estimate costs for specific products.

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Learn more: DDP Shipping Guide · Duties & Taxes · Landed Cost