When shipping internationally, you have the option of having your end customer pay Duties and Taxes or you as the shipper can pay Duties and Taxes. These are known as DDU and DDP:
DDU (Delivered Duty Unpaid): With this method, the end customer pays Duties and Taxes when they receive their shipment.
DDP (Delivered Duty Paid): With this method, the shipper is responsible for paying Duties and Taxes. You can either pay the cost of the Duties and Taxes or collect them from your customer at the checkout.
*Note: USPS DOES NOT offer a DDP service.
What are the advantages and disadvantages of shipping DDU vs DDP:
Delivered Duty Unpaid (DDU):
Advantages: Shipping DDU places the burden of paying Duties and Taxes on customers as opposed to the shipper in turn, lowering the expenses for the shipper.
Disadvantages: Shipping DDU tends to make the customs process a little longer, so the customer has a longer delivery time. There are often extra delivery fees charged by carriers to collect Duties and Taxes that are passed on to the end customer
Delivered Duty Paid (DDP):
Advantages: Shipping DDP will lead to faster transit time as the package spends less time in customs. The customer also does not have to pay Duties and Taxes. Both lead to a better customer experience.
Disadvantages: Shipping DDP is more cost prohibitive and increases the expense for the shipper, unless they can collect the fees upfront from the customer at the checkout.
How to Ship DDP in VESYL
In VESYL you can send order using DDP by shipping the order from Quick Ship.
Click on the Fill Customs Form button after clicking Get Rates
Once that happens the customs form will appear and select Shipper to pay Duties and Taxes (DDP) and click Save.
Setting Incoterms with Automations
You can set and orders Incoterms with automations. To do so navigate to the Automations page and create an automation where the Do This action is Set Custom, Incoterm, then select the appropriate Incoterm.
