DDP stands for Delivered Duty Paid, which is a type of delivery agreement between buyers and sellers that places the risks and responsibilities of transportation on the seller until the buyer receives the goods. Under DDP, the seller is responsible for all transportation and associated costs, including export clearance and customs documentation required to reach the destination port. This includes paying for shipping costs, export and import duties, insurance, and any other expenses incurred during shipping to an agreed-upon location in the buyers country. The buyer is not liable for the actual shipping costs, making them more likely to purchase products without fear of being scammed or having to pay high taxes. DDP is an incoterm, or a standardized contract for international shipments. It is commonly used for international shipping, as it is a cross-border option that takes all fees into consideration upfront, allowing the merchant to still choose whether they pass those fees to the customer by increasing the product pricing or simply eat those costs.

In summary, DDP is a shipping term that places the maximum responsibility on the seller, who is responsible for all transportation and associated costs until the buyer receives the goods. This type of agreement is commonly used for international shipping and is designed to protect the buyer and hold the sender responsible until the customer receives their product.