DDP Shipping:
What It Means, How It Works and Why It Matters (2026)
DDP (Delivered Duty Paid) is the simplest way to import goods. The carrier handles freight, customs, duties, and delivery. You pay one price. Here is everything you need to know.
Quick Answer:
DDP stands for Delivered Duty Paid. It is an Incoterms 2020 rule where the carrier or seller assumes responsibility for all shipping costs from origin to destination, including international freight, customs clearance, import duties, taxes, and final delivery. The buyer pays a single all-inclusive price with no additional logistics charges on arrival. DDP air freight from China to the USA typically costs $4-8/kg. Ocean LCL runs $100-150/CBM. On AiDeliv, carriers compete in reverse auctions for DDP shipments, producing rates 15-40% below traditional quotes.
What Is DDP (Delivered Duty Paid)?
DDP is one of 11 Incoterms published by the International Chamber of Commerce (ICC). Incoterms are standardized trade terms that define who pays for what in an international shipment. DDP places the maximum obligation on the seller or carrier and the minimum obligation on the buyer.
Under DDP, the party responsible for delivery (usually the carrier or the seller's logistics provider) handles:
- Pickup from the origin factory or warehouse
- Export customs clearance in the origin country
- International freight (air or ocean)
- Import customs clearance in the destination country
- Payment of import duties, taxes, and fees
- Final delivery to the buyer's address or warehouse
The buyer's only obligation is to receive the goods and pay the agreed DDP price. No customs paperwork. No duty calculations. No separate broker fees.
DDP is the opposite of EXW (Ex Works), where the buyer handles everything from the seller's factory door onward. Between these two extremes, other Incoterms like FOB, CIF, DAP, and DPU split responsibilities at different points. For a detailed comparison, see our DDP vs DAP vs FOB guide.
Key Takeaway: DDP means the carrier delivers goods to your door with all import costs paid. You get one price. You handle zero logistics.
What Is Included in a DDP Price (and What Is Not)
A DDP quote should cover every cost from the seller's facility to your receiving dock. Here is a standard breakdown.
Included in DDP
| Cost Component | Description |
|---|---|
| Origin charges | Pickup from factory, local trucking, loading |
| Export clearance | Export customs documentation and compliance |
| International freight | Air freight or ocean freight (LCL or FCL) |
| Destination port charges | Terminal handling, unloading |
| Import customs clearance | Entry filing, ISF (for US), customs processing |
| Import duties and taxes | Calculated by HS code and product value |
| Last-mile delivery | Trucking from port to your warehouse or fulfillment center |
| Basic cargo coverage | Standard carrier liability (up to $100,000 on AiDeliv) |
Not Included in DDP
| Item | Why Not |
|---|---|
| Marketplace fees | Amazon FBA fees, Shopify shipping labels, etc. are platform charges, not logistics costs |
| Extended storage | Warehouse storage after delivery is a separate service |
| Product compliance testing | FDA, CPSC, FCC testing is the product owner's responsibility |
| Additional insurance | Coverage above standard carrier liability requires a separate policy |
| Demurrage or detention | Charges from port delays caused by the buyer's inaction (rare under DDP) |
For complete rate tables with pricing by weight bracket, method, and season, see our DDP shipping cost guide.
Key Takeaway: A proper DDP quote covers origin to destination with nothing left for the buyer to arrange. If a carrier quotes "DDP" but excludes duties or customs fees, that is not true DDP. Ask for an itemized breakdown before you commit.
AiDeliv runs reverse auctions where carriers compete for your DDP shipment. 5 free points when you register.
Get DDP Rates →How DDP Shipping Works - Step by Step
Here is the standard process for a DDP shipment from China to the United States. The sequence is similar for other origin and destination countries.
Step 1: Cargo details. You provide product information, weight, dimensions, origin (supplier city), destination (your warehouse or fulfillment center), and product category. On AiDeliv, you enter this once on the platform.
Step 2: Rate quotes or auction. In the traditional model, you email freight forwarders and wait 3-5 days. On AiDeliv, you post the shipment and carriers bid in a reverse auction during a defined window. Each bid must be lower than the last.
Step 3: Booking. You accept a carrier's offer. Under DDP, the carrier now owns every step until delivery. On AiDeliv, you retain full discretion: accept the winning bid, reject it, or start a new auction. Booking happens only when you accept.
Step 4: Origin pickup and export. The carrier collects goods from your supplier's factory, handles export paperwork, and books the freight.
Step 5: International transit. Air freight takes 5-12 days. Ocean freight takes 20-55 days depending on route and method.
Step 6: Import customs and duty payment. The carrier files entry with customs authorities, pays duties and taxes based on the product's HS code and declared value, and clears the shipment for domestic delivery.
Step 7: Final delivery. The carrier arranges trucking to your warehouse, fulfillment center, or Amazon FC. You receive goods ready to sell.
For Amazon FBA sellers, see our step-by-step FBA shipping guide with label requirements, pallet specs, and appointment scheduling details.
DDP Shipping Cost from China to USA (2026 Summary)
This section provides general cost guidance. For complete rate tables by weight bracket and season, see our DDP shipping cost guide.
| Method | Rate Range (DDP) | Transit | Best For |
|---|---|---|---|
| Air freight | $4-8/kg | 5-12 days | Urgent restocks, product launches, high-margin items |
| Ocean LCL | $100-150/CBM | 20-55 days | Small to medium batches, planned replenishment |
| Ocean FCL (40ft) | $3,500-8,000 | 20-45 days | Large volume, bulk inventory |
Rates are DDP all-inclusive (freight, customs, duties, delivery). Actual rates depend on product type, duty rate, origin/destination, and season.
What Drives DDP Cost Up or Down
Five factors determine your DDP rate more than anything else:
- Actual weight vs volumetric weight. Carriers charge whichever is higher. Bulky, lightweight products (pillows, lamp shades) pay volumetric rates that can be 3-5x the actual weight cost.
- HS code and duty rate. Import duties range from 0% to over 25% depending on the product classification. A single HS code digit difference can change your duty by thousands of dollars on a large shipment.
- Season. August through October is peak shipping season. Expect surcharges of 30-100% above low-season rates (March through June).
- Origin and destination. Shenzhen to Los Angeles is the most competitive China-USA lane. Rates to inland destinations or East Coast ports run higher due to longer transit and additional trucking.
- Competition among carriers. This is the variable most importers overlook. A single-source quote reflects one company's margin target. An auction reflects the market rate formed by competition. On AiDeliv, reverse auctions consistently produce rates 15-40% below traditional quotes for the same service scope.
How Reverse Auctions Change DDP Pricing
Most importers accept whatever their freight forwarder quotes. The forwarder sets a price, you negotiate a little, and you have no way to know whether you are paying a fair rate. This is how pricing works when one party holds all the information and the other does not.
A reverse auction changes the dynamic. Instead of asking one company for a price, you let multiple carriers compete for your business. The mechanics are straightforward:
- You post shipment details on the platform (origin, destination, weight, dimensions, product type)
- Verified carriers see the opportunity and submit bids
- Each bid must meaningfully beat the previous one
- Prices drop through genuine competition, not negotiation
- You watch bids in real time and accept when the offer meets your requirements
This is the same price discovery mechanism that commodity markets, government procurement, and corporate logistics departments have used for decades. The difference is that platforms like AiDeliv make it accessible to a small business shipping two pallets from Shenzhen.
The result: your DDP rate reflects what carriers are actually willing to accept for the route, volume, and timing you need. Not a markup calculated in a back office.
On AiDeliv, the auction runs during a defined window. The AI recommendation considers price alongside carrier reliability, on-time rates, and customs clearance track record. But you make the final call. Accept the winning bid, reject it, or start a new auction. The carrier pays a platform fee. You pay only the shipping rate.
For a full explanation of how the freight auction marketplace works, including comparisons to traditional quoting and load boards, see our Freight Auction Marketplace page.
Key Takeaway: When carriers compete, prices drop. A single-source quote reflects one company's margin. An auction reflects the market rate. That is the structural reason auction rates run 15-40% lower.
Post your shipment on AiDeliv and see what carriers actually bid. No obligation. You decide whether to accept.
Run a DDP Auction →DDP vs Other Incoterms - Quick Reference
This is a summary. For a complete side-by-side comparison with risk analysis and decision framework, see our DDP vs DAP vs FOB guide.
| Responsibility | DDP | DAP | FOB | EXW |
|---|---|---|---|---|
| Origin pickup | Carrier | Carrier | Seller | Buyer |
| Export clearance | Carrier | Carrier | Seller | Buyer |
| International freight | Carrier | Carrier | Buyer | Buyer |
| Import clearance | Carrier | Buyer | Buyer | Buyer |
| Import duties/taxes | Carrier | Buyer | Buyer | Buyer |
| Destination delivery | Carrier | Carrier | Buyer | Buyer |
| Buyer's logistics work | None | Customs + duties | Freight + customs + duties + delivery | Everything |
DDP gives the buyer the least amount of work and the most cost predictability. The trade-off is that you rely on the carrier to handle customs correctly and cannot control the duty payment process directly.
For small and medium businesses without in-house customs expertise, DDP is usually the right starting point. As your import volume grows and you develop relationships with customs brokers, switching to DAP for certain lanes may make sense if you want more control over the import process.
When DDP Is the Right Choice (and When It Is Not)
DDP Works Best When
- You import for the first time and have no customs broker or IOR relationship
- You sell on Amazon FBA and need a carrier that handles delivery appointments and acts as Importer of Record
- You want one price with zero surprises at destination
- You ship from China, Vietnam, or other Asian countries to the US, Canada, or Europe
- Your annual shipping volume is under $5M and you lack a dedicated logistics team
Consider DAP or FOB Instead When
- You already have a US customs broker and bonded warehouse you trust
- You want to control the duty classification and payment process directly
- You import high-value goods where duty optimization requires specialist expertise
- You have a high-volume lane where managing logistics in-house saves money
- Your products require complex regulatory clearances (FDA, CPSC) that you want to oversee personally
Neither DDP nor DAP is universally better. The right choice depends on your volume, experience, product type, and how much control you want over the import process.
For a full framework to decide, see our DDP vs DAP comparison.
DDP Shipping by Destination
AiDeliv connects shippers with carriers on the major DDP trade routes from Asia to North America, Europe, and beyond. Each destination has different customs rules, duty thresholds, and clearance timelines.
| Destination | Key Considerations | Guide |
|---|---|---|
| USA | Section 321 ($800 de minimis), ISF filing required, CBP clearance, 3-7 day processing | DDP Shipping from China to USA |
| Amazon FBA | FBA prep (FNSKU labels, pallets), delivery appointment scheduling, placement fees | DDP to Amazon FBA |
| Canada | CBSA clearance, GST 5%, CAD $20 de minimis for shipments from China, NRI program | DDP Shipping to Canada |
More destination guides coming soon: UK, Europe, Australia.
Frequently Asked Questions
What does DDP mean in shipping?
DDP stands for Delivered Duty Paid. It is an Incoterms 2020 rule where the carrier handles all costs and logistics from the origin to the buyer's destination, including international freight, customs clearance, and import duty payment. The buyer pays one all-inclusive price.
Who pays import duties under DDP?
The carrier (or seller) pays all import duties, taxes, and customs fees. The buyer receives goods with zero additional charges. This is what separates DDP from DAP, where the buyer pays duties.
For a deeper comparison, see our DDP vs DAP guide.
How much does DDP shipping cost from China to the USA?
Air freight DDP costs roughly $4-8 per kg. Ocean LCL runs $100-150 per CBM. A full 40ft container costs $3,500-8,000 DDP. All prices include freight, customs, duties, and delivery. Rates vary by product type, duty rate, and season.
For complete rate tables, see our DDP shipping cost guide.
What is the difference between DDP and DAP?
Under DDP, the carrier handles everything including customs and duties. Under DAP, the carrier delivers to your location, but you handle import clearance and pay duties yourself. DDP gives you one price. DAP requires you to manage customs separately.
Full comparison with risk analysis: DDP vs DAP vs FOB.
Is DDP the best Incoterm for Amazon FBA sellers?
For most FBA sellers, yes. Amazon does not act as Importer of Record for third-party sellers. Under DDP, the carrier handles customs clearance and acts as IOR through its approved structure. This prevents customs holds that would delay your inventory and cause stockouts.
Detailed FBA guide: DDP Shipping to Amazon FBA.
What is a reverse auction for DDP shipping?
A reverse auction is a competitive bidding process where carriers submit progressively lower bids to win your shipment. On AiDeliv, verified carriers bid during a defined window. Each bid must beat the previous one. You see all bids transparently and make the final decision. This typically produces rates 15-40% below single-source quotes.
Full explanation: Freight Auction Marketplace.
Can I use DDP shipping for any product?
DDP works for general cargo, consumer goods, electronics, apparel, and most commercial products. It does not work for temperature-controlled goods, hazardous materials, or items requiring special regulatory permits that the buyer must obtain personally. Your carrier can confirm whether DDP applies to your product type.