What Is DDP Shipping? A Guide to Delivered Duty Paid

When shipping internationally, nothing is worse than your customers getting hit with unexpected customs fees upon delivery. That’s where DDP shipping — short for Delivered Duty Paid — comes in. With Delivered Duty Paid shipping, all duties, taxes, and import fees are covered upfront by the seller, so your customers know exactly what they will pay at checkout. This means full-cost transparency, no surprise bills from the courier, and faster, smoother delivery. 

In this guide, we’ll break down what DDP is, how it works under Delivery Duty Paid Incoterms, why it benefits online shoppers, and how DHL helps retailers make the process seamless. For Mexican businesses, DDP shipping is especially valuable for Mexico–US, Mexico–EU, and Mexico–Latin America trade routes, where cross-border customs rules can otherwise complicate delivery.

Ship internationally with DHL today and take the guesswork out of global shopping.

DDP, or Delivered Duty Paid, is an international shipping term from the DDP Incoterms (International Commercial Terms) that shifts the responsibility for shipping costs, duties, and taxes to the seller. Unlike other terms such as DAP (Delivered at Place) or EXW (Ex Works), under DDP shipping terms the seller not only ships the goods but also pays for all import duties and handles customs clearance. 

In other words, the buyer’s role is simple — just receive the package. There’s no need to calculate extra charges or pay additional fees upon delivery. This is why DDP shipping has become increasingly popular in global e-commerce. 

Try DHL’s Duty & Tax Calculator to preview real landed costs for your order. 

By offering DDP shipping, you can significantly enhance your international customer experience and streamline cross-border logistics. Here’s how:  

• Increase Conversion with Transparent Pricing 
  With DDP incoterms, all costs—product, shipping, duties, and taxes—are calculated upfront and shown at checkout. This transparency builds trust and reduces cart abandonment, especially for international buyers wary of hidden fees. 
  
  
• Eliminate Customs Surprises for Your Customers 
  Unexpected import duties at delivery are a major pain point for global shoppers. By handling these costs in advance, you remove friction from the buying journey and improve customer satisfaction. 
  
  
• Speed Up Customs Clearance and Delivery Times 
  Prepaid duties and taxes mean faster processing at borders. This reduces the risk of delays and ensures your shipments reach customers more quickly, improving delivery reliability and repeat business. 
  
  
• Build Trust and Loyalty Through Predictability 
  Knowing exactly what DDP shipping is and how it works removes uncertainty. Buyers can shop internationally without worrying about hidden charges or complicated customs paperwork. 
  
  
• Seamless Integration with DHL’s DDP shipping solutions 
  DHL works with sellers to integrate Delivered Duty Paid services directly into the checkout process. This ensures smooth customs handling, real-time duty calculation, and reliable delivery to your door. 

Wondering how DHL handles Delivered Duty Paid orders? When a seller offers DDP shipping, DHL ensures the process is as smooth as possible for both the business and the customer.

While DDP shipping is a great way to improve the customer experience for international orders, it’s not the right fit for every situation.

• It can increase the product price for customers 
  Because the seller covers all shipping, customs, and import costs upfront, these expenses are often factored into the item’s selling price. For price-sensitive shoppers, this could make the product less competitive compared to alternatives. 
  
  
• Not ideal for low-margin items 
  If you’re selling products with slim profit margins, absorbing duties and taxes may significantly reduce your earnings. In such cases, offering DDP shipping terms could be financially unsustainable. 
  
  
• Limited availability in some regions 
  Certain countries have complex customs regulations or restrictions that make it harder for sellers to manage Delivery Duty Paid shipping. Availability can also depend on the logistics provider’s network and capabilities. 
  
  
• Alternative: DAP (Delivered at Place) 
  With DAP Incoterms (formerly known as DDU), the seller ships the product but the buyer pays duties and taxes upon arrival. While this shifts responsibility back to the buyer, it can lower the upfront cost of the product and work better for certain markets.