Inventory glossary

What is DDP shipping?

DDP shipping (Delivered Duty Paid) is a shipping term where the supplier pays for freight, import duties, and taxes, and delivers the goods to your door ready to receive.

For a small Shopify store, DDP makes landed cost predictable because duties and taxes are baked into the supplier's price instead of showing up as a surprise customs bill when the shipment arrives. This matters most if you import from overseas suppliers and do not have an in-house customs process.

When you compare supplier quotes, check whether the price is DDP or something else like FOB or EXW. A DDP quote looks higher upfront but often costs less overall once you add the freight, duties and customs fees you would otherwise pay separately.

Example

A candle store owner orders 500 units from a supplier in Vietnam. The supplier quotes 6 dollars per unit DDP, delivered to the store's warehouse. The total cost is 500 x 6 dollars = 3000 dollars, with no extra customs or duty bills to pay later. A competing supplier quotes 5 dollars per unit EXW, but after adding freight and duty the owner estimates the real cost closer to 6.20 dollars per unit, making the DDP offer cheaper.

Common mistakes

  • Assuming DDP means free shipping, when the cost is just folded into the unit price.
  • Not confirming which taxes are included, since some DDP quotes exclude local sales tax.
  • Comparing a DDP quote directly against an EXW or FOB quote without adding in freight and duty for the other option.

DDP shipping and SteadyShelf

SteadyShelf does not calculate landed cost or duties, but it does use your supplier's lead time, DDP or otherwise, to tell you when to place the next order.

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Related terms

FOB shipping · EXW shipping · Incoterms · Lead time · Landed cost

Full inventory glossary

FAQ

Does DDP shipping mean I pay nothing extra when the shipment arrives?

Yes, under DDP terms the supplier has already paid freight, duties and import taxes, so you should not receive a separate customs bill.

Is DDP always cheaper than FOB or EXW?

Not always. The unit price is usually higher under DDP, but once you add freight, duty and customs fees to an FOB or EXW price, DDP can end up costing about the same or less.

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