Boost international sales with Delivery Duty Paid (DDP)
Cart abandonment is an issue for every eCommerce retailer. Around seven in ten customers abandon their online shopping cart before completing a transaction. Cart abandonment is especially pronounced in certain eCommerce niches, including luxury, fashion, childcare, and DIY.
Some of the main reasons for cart abandonment are related to additional hidden fees, including shipping, taxes, and other costs. This is particularly true when selling across international borders, where customers will often have to pay additional duties and other taxes. Depending on your eCommerce brand's shipping method, the "total landed cost" (the total cost of the purchased item, including associated taxes and duties) may not appear in the checkout process.
These international customers will be surprised by the total cost of their purchased items. When they discover the total landed cost, it's possible they will abandon the cart. In some cases, duties and taxes may not even be paid during the checkout process, meaning that the customer pays additional fees when their products are delivered—causing a refusal of delivery and additional return costs.
U.S. eCommerce brands selling internationally must solve the issue of cart abandonment and refused deliveries. Otherwise, you risk high return fees and negative brand impacts. One of the best ways to deal with unexpected fees and cart abandonment is by using a Delivery Duty Paid (DDP) parcel shipment method.
DDP provides much more transparent total landed costs, which helps build customer trust and reduce cart abandonment. If you want to boost international eCommerce growth, DDP could be the solution you need.