How to Display Estimated vs. Prepaid Duties
What are they?
Duties (or 'customs fees') are taxes charged by a country when a product is imported. For your international customers, this is a major point of friction. Shopify Markets gives you two ways to handle this at checkout.
Your Two Options for Handling Duties:
| DAP (Delivered at Place) | DDP (Delivered Duty Paid) |
|---|---|
| The customer pays only the product + shipping at your checkout. They are responsible for paying any duties or taxes to the delivery driver when the package arrives. | You collect the full, guaranteed duty and tax amount from the customer at checkout. You then pre-pay these fees, so the customer receives their package with no extra charges. |
| Pros: Simpler for you to set up initially. | Pros: A *massively* better customer experience. This is the 'gold standard' and leads to much higher conversion and satisfaction. |
| Cons: A *terrible* customer experience. This is the #1 cause of international customer complaints, refused packages, and angry reviews. | Cons: More complex. Requires you to use Shopify Markets Pro or specific carrier integrations to handle the pre-payment. |
The Golden Rule: No Surprises
DDP (Prepaid) is always the better customer experience. If you cannot offer it, you *must* be extremely clear in your shipping policy and at checkout that the customer is responsible for all import duties and taxes upon delivery. A surprise fee is the fastest way to get a 1-star review.
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