The most frequent way of shipment freights to customers, DDU shipping is the obvious choice for B2C businesses with some advantages and disadvantages. First of all, it is the buyer`s responsibility for duties and taxes. The customer wants their order to be delivered as soon as possible at the cheapest cost.
The basics start with B2B shipping
Due to the nature of the product classification and the actual value of the products being shipped, manufacturers and wholesale suppliers have generally used the “Delivered Duty Unpaid” (DDU) approach. Typically, express carriers have streamlined this process by building specific localized relationships with their customers (buyers). This is ideal and possible as regular shipments are sent and received by a single recipient, which supports import clearance.
DDU (Delivery Duty Unpaid)
This is the most common way of sending an order to a customer, but there are pros and cons in the B2C space. This deadline puts most of the risk of duties and taxes on the buyer. This term will slow down the delivery process, which is not exactly good for customer satisfaction. Most private freight forwarders require that duties and taxes be paid prior to delivery. Better than others, but the process slows down in the consumer’s reaction to the carrier. Once a consumer is registered with the carrier, you can set up a process to automate this over time. However, this is very difficult when there are so many different recipients involved. In this situation, however, various postal solutions may work best for low-value mail items that the local postal authority may not want to spend resources on collecting the low duties and taxes. Meter means that the seller fulfills his delivery obligation if the goods have been made available at the named place in the importing country. The seller bears the risks and costs including customs duties, taxes, and other charges for the delivery of the goods to the same, offset for the import.
To meet customer expectations, sellers often use DDP when shipping across borders. The customer will have a better and smoother experience (faster, no customs), but the burden of duties and taxes is now the responsibility of the seller. These costs must be paid in advance. For typical e-commerce businesses selling a limited number of products, this can be optimized as the related tasks of the products can be managed more effectively.
Managing larger product groups becomes more of a challenge. This is mainly due to the frequent change of rules and regulations in the countries.
As the various rules and restrictions may be different in each country, it is recommended that you, the seller, understand the local valuation regulations for the countries you are shipping to. As a rule of thumb, DDU is generally the best approach for high-quality broadcasts.
Using DDP shipping is the best approach to a great customer experience, but it can also be more expensive. For a seller when it comes to duties and taxes due to the nature of international shipping.