COMPARE THE CUSTOMER EXPERIENCE


Delivered Duty Paid (DDP)

Delivered At Place (DAP)

Deliverd Duty Paid (DDP)

VS

Delivered At Place (DAP)

SHOPPING CART

The customer sees all charges, including product price, sales tax, delivery fee, and duty rates.

They know exactly how much they’ll have to pay to get the product delivered to their door and can make an informed purchasing decision.

The customer sees the product price, and delivery fee.

They may assume the total includes customs duty and import charges, and may make the purchase without realizing they’ll be responsible for those additional fees.

DDP: The customer sees all charges, including product price, sales tax, delivery fee, and duty rates.

They know exactly how much they’ll have to pay to get the product delivered to their door and can make an informed purchasing decision.

DAP: The customer sees the product price, and delivery fee.

They may assume the total includes customs duty and import charges, and may make the purchase without realizing they’ll be responsible for those additional fees.

AT CUSTOMS

Import officials verify all taxes and duties have been paid and release the package for delivery.

Import officials assess import taxes and duties, then the carrier notifies the customer their shipment is available upon payment.

This may be the first time a customer learns they’re responsible for the import charges. If they opt not to pay them, they can reject the shipment, which is then returned at the seller’s expense or disposed of by the carrier.

DDP: Import officials verify all taxes and duties have been paid and release the package for delivery.

DAP: Import officials assess import taxes and duties, then the carrier notifies the customer their shipment is available upon payment.

This may be the first time a customer learns they’re responsible for the import charges. If they opt not to pay them, they can reject the shipment, which is then returned at the seller’s expense or disposed of by the carrier.

DELIVERY

The customer is excited about their new product, and likely won’t think about the import costs again.

If the customer accepts the package, they’ll have to arrange payment (and possibly pickup) with the carrier.

Their satisfaction is diminished by the surprise fees they had to pay.

DDP: The customer is excited about their new product, and likely won’t think about the import costs again.

DAP: If the customer accepts the package, they’ll have to arrange payment (and possibly pickup) with the carrier.

Their satisfaction is diminished by the surprise fees they had to pay.

REPURCHASE

The customer remembers the smooth, transparent process and makes another purchase.

The customer finds a seller with a better customer experience.

DDP: The customer remembers the smooth, transparent process and makes another purchase.

DAP: The customer finds a seller with a better customer experience.

It’s no wonder ecommerce sellers opt to calculate all the taxes and duties associated with a cross-border purchase at checkout. The good news: Avalara has a solution to do just that.