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Accurate DDP prices

Discussion in 'eCommerce' started by Egras, Nov 10, 2019.

  1. #1
    I would like to sell DDP on my site but need it to be accurate i.e. use the harmonized codes my products have. Any advice on how to do this would be greatly appreciated.
    SEMrush
     
    Egras, Nov 10, 2019 IP
    SEMrush
  2. Vladimir Petrovic

    Vladimir Petrovic Peon

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    #2
    To be precise in selling on DDP basis, you have to take into account several factors:
    - what's your location (country, region)
    - what is your target market (your country/region, your continent, worldwide)
    - besides transport costs, are there customs costs for selling to your target markets
    - which type of transport do you plan to use (regular post, EMS, courier services like UPS, DHL, Fedex)
    - types of products you sell in terms of volumetrics (weight to volume ratio)
    just to name the most important ones.

    The question is why would you want to do this? It complicates things quite a lot. A little more background about your business and goals would help to understand and give the proper advice. Do you sell B2B or B2C? In B2B businesses, it is usual to sell on CPT or DDP terms and in B2C not so much. From my experience in international sales, for large B2B shipments (in both quantity and cost), it is quite easy to predict the final cost on DDP basis. However, for small shipments (like B2C deliveries under $100), you never know when and why the customs might decide to put additional customs cost on the items inside the parcel, even though they probably shouldn't. So, deciding to pay for the complete cost by yourself like this, in advance, you risk losing money in certain situations, or even worse, losing the customer because the customs charged him as the receiver the additional customs cost.

    If you share your website and more details about your brand...
     
    Vladimir Petrovic, Jan 20, 2020 IP
  3. Stefvanef

    Stefvanef Peon

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    #3
    I think it's really good practice to use DDP. I heard quite a few stories of products sold DAP, especially internationally, who end being a write-off for the seller. You send the product, buyer isn't aware he'll have to pay taxes and duties at the moment of receiving the parcel. So he refuses and you're product gets lost in returns. Returns are already a pain in general, so imagine international returns.
    But it's also a big pain to manage DDP calculations on your own. You'd need a db of HSS codes and update rates per country. I can wind up being a full time job if you wan to do that internally.
    Depending on where you are, you can look for some external help. If you're in the EU, I can recommend the export solutions of merchants.glopal.com (disclaimer: I don't work for Glopal, but the company I do work for, is affiliated with them). If you're in the US, Avalara.com is the industry leader. Flow.io are good too.
     
    Stefvanef, Feb 4, 2020 IP