Working in partnership with Hurricane Commerce, a world leading cross-border data provider, ETrak has launched a range of DDP shipping solutions across our OnTrak product range.
DDP, meaning Delivered Duties Paid, is a shipping method which means the sender, usually an online retailer, is responsible for any customs duties and taxes due on the goods being sent.
This is unlike DDU, or Delivered Duties Unpaid, which means the recipient or end customer is liable for duties and taxes, so when their item arrives they will be contacted by customs to pay the fees before their parcel is delivered. A problem arises when the customer is unaware of these extra costs and a prime example of this is when the UK left the EU.
Shoppers in Europe were suddenly hit with unexpected import costs when ordering products from the UK and vice versa. The result was, lots of unhappy shoppers and many retail businesses taking the decision to stop shipping between the UK and Europe entirely.
How does DDP delivery work?
Our DDP delivery solution allows retailers to collect import fees at the checkout. This provides them with the option to build these costs into the final retail price of their products, therefore avoiding the potential fallout from customers being hit with unexpected costs at the time of delivery.
But, every product has a different duty and tax rate and rates differ from country to country, so how do we know what the import fees will be?
That’s the clever part! Using Hurricane’s landed cost engine, we can calculate the duties and taxes due on any shipment, regardless of the importing country. This allows retailers to be completely transparent with their customers by showing them the total cost of purchase before they checkout. No hidden costs and no nasty surprises!
Chris Tayler, Head of ETrak, said: “DDP shipping is crucial for retailers who want to provide the smoothest and simplest shopping experience.
As more and more customers are shopping online and in many cases choosing to shop internationally, protecting customers from unexpected costs such as customs and import tax, is essential to improving conversion and retention rates.
Our new DDP shipping solutions are in addition to our current DDU options and provide e-commerce retailers with greater flexibility for handling customs duties and taxes while offering their customers an improved shopping experience.”
Hassle-free customs clearance
In addition, Hurricane’s API also checks each shipment to ensure the correct data has been provided, including product descriptions, HS6 codes and import and export codes. This improves transit times by reducing delays in customs and improves the overall customer experience. Automatic prohibited and restricted goods screening and denied parties screening also provides extra peace of mind ensuring retailers are compliant with the latest legislations.