Delivered Duty Paid (DDP) shipping means you pay customs duties and taxes upfront so your international customers don’t get surprise charges when packages arrive. This creates a better shopping experience and prevents packages from being returned due to unpaid duties.
Note: In this guide, we’ll use UK to US shipping as an example, but this process works for any international shipping route. You can set up DDP shipping from any country to any destination where Shopify supports duty collection. For example, you could ship DDP from Canada to Europe, Australia to the US, or Germany to Japan. The steps remain the same – just select your target market instead of “United States” in the setup process.
How to set up DDP shipping
Turn on duty collection for your target country
Go to your Shopify admin panel. Click Settings, then Markets.
Find your target country (like “United States”) in your markets list. Click on it to open the settings.
Look for “Duties and import taxes” section. Turn on “Collect duties and import taxes at checkout.”
This makes Shopify calculate and charge duties when customers from that country check out. The money gets added to their order total automatically.
Add product codes and origin information
Every product needs special codes for customs.
Go to Products in your admin. Open each product you sell internationally.
Scroll down to “Shipping” section. Fill in these fields:
- HS code (Harmonized System code)
- Country of origin
HS codes tell customs what your product is. Country of origin says where it was made. You can find HS codes on government websites or ask your supplier.
Without these codes, customs can’t calculate duties properly.
Set up your shipping carriers
Only some shipping companies support DDP labels through Shopify.
Go to Settings, then Shipping and delivery in your admin.
Shopify Shipping works with these carriers for DDP:
- DHL Express
- DHL eCommerce
If you use other carriers like Royal Mail or UPS, you need to buy DDP labels from them directly. Shopify can’t create these labels for you.
Choose carriers that support DDP to make the process easier.
Create DDP shipping labels
When you ship orders where duties were collected, use DDP labels.
Go to Orders in your admin. Open an international order.
Click “Create shipping label.” Choose your DDP-enabled carrier.
The label will show “DDP” as the delivery terms. This tells customs that duties are already paid.
Never use regular shipping labels for orders where you collected duties. This causes customers to pay duties twice.
Update your shipping information
Tell customers that duties and taxes are included.
Update these places:
- Shipping policy page
- Product descriptions
- Checkout page text
- Email confirmations
Say something like: “All duties and import taxes are included in your order total. No additional charges at delivery.”
This prevents customer confusion and support questions.
Check order value limits
Shopify Shipping has value limits for international orders.
Each shipment cannot exceed $2,500 USD when using Shopify’s shipping labels.
If you sell expensive items, you might need to:
- Split large orders into multiple shipments
- Use external shipping services
- Contact Shopify support for options
Most regular orders stay under this limit.
Handle commercial invoices
Every international shipment needs a commercial invoice.
When you create shipping labels, Shopify generates these automatically. Make sure they show:
- DDP delivery terms
- Correct product values
- Proper HS codes
- Your business information
Print and attach these invoices to your packages. Customs needs them to process shipments.
Test with small orders first
Before shipping expensive items, test the process.
Send a small, cheap item to yourself or a friend in your target country. Check that:
- Duties were calculated correctly
- DDP label was created properly
- Package arrived without extra charges
- Commercial invoice was correct
Fix any problems before shipping valuable orders.
Monitor and adjust
Watch your first few DDP shipments carefully.
Check these things:
- Delivery times
- Customer feedback
- Any delivery issues
- Duty calculation accuracy
If customers report problems or packages get delayed, review your setup. You might need to adjust HS codes or switch carriers.
Conclusion
Setting up DDP shipping takes some initial work but creates a much better experience for international customers. They know exactly what they’ll pay upfront and won’t face surprise charges at delivery. This reduces cart abandonment and customer complaints while making your store more competitive with local sellers in your target markets. Start with the duty collection settings, add proper product codes, and choose DDP-supporting carriers to get the system working smoothly.
