DDP — Delivered Duty Paid — means the seller is responsible for getting the goods to the agreed destination and paying the duty there. It sounds like the easiest option for a buyer, and in some channels it is. But the term itself does not tell you who is doing the paperwork, who is controlling the freight, or whether the landed price is actually competitive.
When DDP helps
- You are shipping direct to consumers (DDP to a shopper address) and want one landed price per order.
- You are shipping to a DC and want one invoice, one customs entry, and one point of responsibility.
- You do not want to run your own freight broker or customs account for a smaller volume.
When DDP is the wrong choice
- The seller's freight forwarder is not competitive on the lane — you may pay more than you would through your own broker.
- The seller is using DDP as a price mask — the duty and freight are hidden inside a higher unit price.
- You need visibility over the HS code, the duty paid, and the compliance documentation for your own customs or audit records.
The practical choice
Use DDP when the seller's lane and broker are genuinely cheaper than your own, or when the simplicity of one landed price outweighs the freight saving. Ask for the broken-out figure — FOB unit, inland, freight, insurance, duty — so you can see what DDP is actually costing you.
DDP is a commercial convenience, not a guarantee of a better price. The broken-out landed cost is always the number worth knowing.