What is DDP?
DDP (delivery duty paid) is a shipping method in which the shipper pays all duty, tax, and other fees for an international shipment. By doing this, the recipient does not have to deal with international customs and the shipment is delivered directly to them without having to pay additional fees.
DDP differs from DDU (delivery duty unpaid) in that with DDU shipping, the shipper only pays for shipping. Any duties, taxes, or fees are paid by the recipient.
DDP is ShipBob’s recommended method of shipping cross-border (from one country to another) as there is very little chance of the shipment getting abandoned or refused by the recipient. This is more common with DDU shipments as duties and taxes are often not known ahead of time and can be a surprise to the end customer.
What is FlavorCloud?
ShipBob merchants can ship items via DDP through our partner, FlavorCloud, who helps estimate duty/tax/fees so you can charge customers for it ahead of time. They also act as the merchant of record for DDP shipments to help streamline customs clearance. ShipBob processes DDP shipping labels through FlavorCloud so they handle any issues from a service standpoint.
To start leveraging ShipBob's DDP program, please fill out your contact information here and we will send you information on next steps. In general, onboarding consists of the below steps which will be covered in more detail once you submit the interest form above.
Install the FlavorCloud app
Ensure all products have the required information for international shipping
Map DDP ship options in ShipBob
ShipBob DDP Overview
The below fulfillment center locations are currently handling international orders and offer DDP shipping.
Grapevine 1 (3-day delay)
Grapevine 2 (3-day delay) *Upon Request
Carrollton (3 day delay)
Twin Lakes (Upon Request)
Forest Park (3 day delay)
Farmers Branch (3 day delay)
Atlanta (3 day delay)
Reno (2 day delay)
Las Vegas (2 day delay)
Birmingham, UK (Upon Request)
United States -- Chattanooga, TN
United States -- Louisville, KY
Australia -- Sydney
European Union -- Western Poland
Shipping Options & Carriers
Standard - In the US, APC Postal Logistics will sort and transport orders throughout their LA, Newark, and Chicago, facilities. UPS Mail Innovations may also be used for Canada shipments.
Expedited - DHL Express, UPS, FedEx
Standard - DPD UK & Fedex Crossborder
Expedited - DHL Express
Tariff Information and Product Value
FlavorCloud will use the tariff information in the merchant’s eCommerce store to estimate duties, taxes, and fees. ShipBob will use the HS code and product value in the ShipBob dashboard for the Commercial Invoice that customs officials will use to calculate actual duties and taxes. Any differences in information from the two sources can cause issues at customs.
Eligible Order Types
DDP will only be an option for orders from the merchant’s eCommerce store that have the correct mapping to ShipBob’s DDP ship options. For example, if the merchant only has FlavorCloud estimates set up for shipments to Canada, only orders to Canada ingested from that eCommerce store are eligible for DDP.
Duties, taxes, and fees are not included in the ShipBob fulfillment rates. These will be a separate charge. ShipBob uses the FlavorCloud estimates for DAT charges.
There are no charges from FlavorCloud to utilize this service. All charges will be billed through your ShipBob account including shipping, duties, taxes, and fees. Shipping will be billed via your normal invoice, while the other charges mentioned will be split out and billed via a separate invoice.
FlavorCloud will pull in ShipBob shipping prices and add the appropriate duties, taxes, and fees at checkout.
What ecommerce stores can support DDP shipping with ShipBob?
Shopify and BigCommerce have a native integration with FlavorCloud
A third party integration for Woocommerce is available but is not supported by FlavorCloud or ShipBob.
Any ecommerce store can be integrated by API to offer DDP shipping
Who is importer of record?
FlavorCloud is the importer of record and owns the relationship with the carrier and customs.
What about VAT or other taxes?
FlavorCloud files VAT or any other taxes on your behalf.
If a merchant has an entity in a specific country they will have to file a tax return, otherwise they are considered a distance seller and it is not required.
Can merchants modify what is charged for shipping/duty?
Yes, there is an option to modify what is charged for shipping or shipping + duty (landed cost) in FlavorCloud dashboard.
Does FlavorCloud show rates in native currency at checkout?
FlavorCloud relies on cart functionality or other apps to do this. FlavorCloud simply estimates duty/tax/transit time and shows options at checkout.
How does money flow?
Customer pays merchant via eCommerce cart for duty/shipping
ShipBob charges merchant for duty/shipping and passes to FlavorCloud
FlavorCloud remits duty to customs and shipping to carrier
How does FlavorCloud work with CartBob?
CartBob and FlavorCloud will not work together, as they are pulling information from two different sources: CartBob pulls item details from ShipBob while FlavorCloud pulls from Shopify. The DDP shipping option at checkout will always flow through the FlavorCloud app. CartBob can be used for a DDU option, if desired.
Where can merchants ship internationally?
Any country that accepts DDP. The following countries do not allow delivery duties to be prepaid (DDP) and thus will require DDU shipping: