Brexit has brought a lot of changes to international shipping – including some terminology you may not have come across previously. But if your head’s spinning with all those new terms, don’t worry. Our short guide to DDU and DDP should help you sort out which services your business needs to offer.
What do we mean by DDU vs DDP?
DDU and DDP are international delivery methods that cover:
- The costs on imported goods, including taxes and duty
- Where customs duty is paid
- Who pays the costs: buyer or seller
But what do they stand for?
What is DDU?
Who’s responsible for paying duties, taxes and import fees? The buyer.
Delivery Duty Unpaid (DDU) means delivery duties aren’t paid until the order arrives at its destination. The customer is responsible for paying relevant taxes and import fees when their order is delivered.
What is DDP?
Who’s responsible for paying duties, taxes and import fees? The seller.
Delivery Duty Paid (DDP) means you absorb all the costs. Duty is paid before the items ship, so your buyer only has to pay you for their order and take delivery at their end.
What are the pros & cons of DDU and DDP?
DDU is a great choice for reducing your upfront costs so you can offer lower prices. But is it enough to win customers when they get hit with an unexpected customs bill?
Those additional fees could cost you in the long run with negative reviews, abandoned shipments and loss of online sales.
For EU orders under €150 specifically, this risk has increased since 1 July 2026: the exemption that used to keep these smaller parcels duty-free no longer applies, so DDU shipments in this range can now surprise customers with charges that didn't exist before. This is a stronger reason than previously to lean towards IOSS or DDP for lower-value EU orders.
DDP reduces the risks of customer complaints and abandoned shipments. It is more expensive, but it’s also quicker and more convenient for you and your customers. And if you’ve built your reputation on providing a great customer experience, it’s the clear winner.
Just be aware that there's always a risk of clearance being delayed. In addition, you’ll need someone on the ground to ensure the process runs smoothly, which can add to your costs.
DDU, DDP or IOSS?
Import One Stop Shop (IOSS) is an electronic portal for shipping into the EU where the seller pays any VAT.
Since 1 July 2026, a temporary €3 customs duty also applies to EU parcels under €150, on top of VAT, being IOSS registered gives you the smoothest path through customs under this new duty too.
Choose IOSS when:
- You’re selling into the EU
- Goods have a total value under €150
- You want to avoid surcharges and custom delays
- The seller is IOSS registered, or you’re selling on an IOSS registered UK ecommerce site
Choose DDU and DDP when:
- You’re selling into the EU and the rest of the world
- The value of the goods is over €150
- Duty needs to be paid
- The buyer isn’t IOSS registered
- The goods aren’t sold on an IOSS marketplace
Ship smarter with Zenstores
Shipping internationally needn’t be a headache. Streamline your international shipping with Zenstores today.
Frequently Asked Questions
What is the difference between DDU and DDP?
DDU (Delivery Duty Unpaid) means the buyer pays import duties and taxes when the order arrives. DDP (Delivery Duty Paid) means the seller pays these costs upfront, so the buyer only pays for the order itself.
Can Zenstores handle both DDU and DDP shipments from the same account?
Yes. Zenstores lets you apply the right customs and duty setup per order, so you can offer DDP on some shipments and DDU on others without switching platforms or manually adjusting paperwork each time.
Does Zenstores apply my IOSS number automatically for eligible EU orders?
Yes. Zenstores applies your IOSS number and the correct customs data to qualifying EU orders under €150 automatically, so VAT is handled at checkout without manual input on each shipment.
How does Zenstores account for the new €3 EU customs duty on low-value orders?
Zenstores keeps your customs data, HS codes, product descriptions, and declared values, accurate and current as EU requirements change, including how the new €3 duty interacts with IOSS-registered orders under €150.
How does Zenstores reduce the manual work of choosing between DDU, DDP, and IOSS?
Rather than deciding case by case and re-entering customs details each time, Zenstores generates the correct labels and documentation for whichever method applies to an order, DDU, DDP, or IOSS, based on the order's own data.
