DDP (Delivered Duty Paid)
Supplier delivers all the way in, duties paid; you just receive the goods.
Definition
DDP (Delivered Duty Paid) is the Incoterm with the most supplier responsibility: the supplier delivers the goods to the destination you name and pays everything along the way, including export, freight, insurance, and import duties and customs clearance. For FBA sellers a DDP quote is the all-in 'door to FBA' option, with one important caveat: paying the duties is not the same as carrying the legal import liability, which can still sit with you.
What DDP covers
Everything: origin handling, export, freight, insurance, import customs and duties, and delivery to the destination you name, often straight to FBA or a prep center. You receive the goods with nothing left to arrange.
The trade-offs of DDP for FBA sellers
Simplicity is the appeal, especially for newer sellers. But the freight and duty are bundled into one price, so you lose visibility into the real breakdown, and above low order volumes DDP usually costs more than running FOB through your own forwarder who is not marking up the freight and duty leg. You also lean entirely on that forwarder's customs compliance. The big one is the importer-of-record detail: on US imports the buyer is often still treated as the importer of record despite DDP (per US Customs and Border Protection rules), so a wrong or gray-area tariff classification can land back on you in back-duties even though someone else filed it.
What DDP means for your landed cost
DDP is the closest single number to a true landed cost, since it includes duty and delivery. Break it down anyway so you know your real per-unit freight and tariff exposure rather than trusting one opaque figure. One operational note: a supplier can technically ship DDP straight to an Amazon fulfillment center, but Amazon's labeling and packing rules trip up most overseas shippers, so a prep-center stop in between is usually the safer route.
Related terms
Break a bundled DDP price apart
Inventory Hero helps you separate freight, duty, and product cost inside an all-in DDP price, so you know your real per-unit exposure instead of one opaque number.
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