由 lltx1822 5 Key Differences Between DDP and COD: Delivery Methods, Duty Liability, and Logistics Management Compared
DDP and COD differ essentially in five core dimensions. First, delivery methods vary: DDP requires sellers to deliver goods to the buyer’s inland location, while COD typically completes delivery at the importing country’s port, border, or specified point. Second, duty liability differs significantly: DDP sellers bear import duties and taxes, requiring advance knowledge of importing country tax policies, whereas COD buyers assume these costs.
Third, logistics management responsibilities vary: DDP sellers coordinate transportation, warehousing, and clearance, demanding high supply chain coordination; COD sellers handle only export transportation, with imports managed by buyers. Fourth, capital flow models differ: DDP sellers advance substantial funds for transportation and duties, with long capital return cycles; COD sellers receive payment upon delivery, with lower capital pressure but higher default risks. Fifth, risk distribution differs: DDP sellers bear end-to-end risks, while COD sellers primarily bear risks before delivery. These differences mean enterprises must choose terms based on their realities.