What's the best way to handle customs and duties for international shipments?

Expert answer · sourced from 8 podcast episodes

Short answer

The biggest mistake brands make with international shipping is leaving customs for the customer to figure out. It feels easier, but it creates surprise costs and kills repeat business. You should always ship Delivered Duty Paid (DDP) so the customer gets one all-inclusive price at checkout.

TL;DR

The absolute worst way to handle international duties is also the most common: leaving your customer to deal with it. This approach, often called Delivered Duty Unpaid (DDU), seems simpler upfront but it torpedoes the customer experience and kills your chances of repeat business.

I can see the appeal of DDU. On the surface, it looks like less work. You calculate shipping, the customer pays, and your responsibility ends once the package leaves your warehouse. It feels cleaner to not get involved with foreign tax codes, an alphabet soup of regulations, and the extra cost. Many merchants, as Cody DeArmond mentioned on Ecommerce Conversations, still operate this way because it feels like the default, pushing the complexity onto the recipient.

This "simplicity" is an illusion that creates a nightmare for your customers. As Alex Yancher explained on Smarter Paths to Global Sales, a DDU package often gets held hostage at a local post office. The customer receives a notice demanding they show up in person and pay an unexpected bill before their purchase is released. This friction is fatal. On another podcast, Alex points out that there often isn

Cited episodes (8)

  1. eCommerce Nurse Podcast — Selling on Amazon in Europe, every marketplace is different cover art
  2. The EcomCrew Ecommerce Podcast — E603: The Ultimate 3 Month Product Launch Plan cover art
  3. Ecommerce Conversations — Building an Ecommerce Business, Part 7: Shipping Processes cover art

    Building an Ecommerce Business, Part 7: Shipping Processes

    #3 · Ecommerce Conversations · with Cody DeArmond

    The hosts discuss DDU vs. DDP, noting that while passing duties to the customer is common, it creates a poor experience.

  4. The Smartest Amazon Seller — Episode 42: Smart International Shipping | How Freight Forwarders Can Provide Peace of Mind cover art
  5. The Smartest Amazon Seller — Episode 114: Importer of Record and how I launched in Australia with the flip of a switch cover art

    Episode 114: Importer of Record and how I launched in Australia with the flip of a switch

    #5 · The Smartest Amazon Seller · [Host Name]

    This episode covers the role of an Importer of Record, a key partner for handling DDP shipments and managing compliance.

  6. Ecommerce Conversations — Smarter Paths to Global Sales cover art

    Smarter Paths to Global Sales

    #6 · Ecommerce Conversations · with Alex

    Alex Yancher makes a strong case for DDP shipping, explaining how it prevents packages from being held at customs.

  7. The Amazon Seller Podcast — 5 Importing Myths cover art
  8. The Smartest Amazon Seller — Episode 150: International Hurdles. Know the right questions to Ask the Right Questions with Zee cover art

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