We will introduce the advantages and disadvantages of buyers choosing DDP as their Incoterms in international procurement.
Advantages of DDP for buyers:
Buyer shall not be liable for any delivery costs, taxes or incidental charges of any kind incurred in the course of transportation and delivery. This is usually beneficial because there may be unknown costs at the time of shipment, as the importing and exporting countries may require different degrees of inspection, and these costs are always passed on to the shipper.
The cost of testing can be high, and while it is rare, it is an aspect that should be considered. When buying under DDP terms, this risk disappears because even if this happens, the fee is charged to the seller.
They don't have to count extra. As the name implies, duty paid means that the buyer is paying shipping and duty for the price of the product. Once the product arrives safely, they will bear no additional cost.
Once the product is shipped, buyers simply wait for their goods to arrive and accept it. This takes the pressure off the buyer because they know that anything that might happen to the product during shipment is the seller's responsibility.
DDP becomes more advantageous to the buyer if the buyer can structure their purchase agreement in a way that reduces the risk of shipping delays and unqualified logistics companies. The overall advantages can outweigh the disadvantages if the seller can agree to use specific logistics companies that specialize in shipping from and to both destinations, and they define the required delivery dates.
DDPFORWORLD- Professional China international freight forwarder
DDP shipping remains one of the most popular modes of transportation for international businesses as it is popular with buyers. They take less risk until the product is delivered, so it's in their best interest. However, if there are too many problems, the costs associated with the seller's DDP can make it unprofitable.
DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you run an e-commerce business and want to find a trusted company to provide DDP services to work with, please contact us.
Phone: +86 18682082113
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