The Impact of DDP and COD on Last-Mile Delivery in Cross-Border Logistics
Last-mile delivery represents the final and most critical stage in cross-border logistics, and DDP and COD each influence its execution differently. With DDP, sellers often collaborate with local distribution networks to ensure timely customs clearance and doorstep delivery. A furniture exporter using DDP in the US market partnered with regional carriers to handle final-mile logistics, reducing delivery times from 14 days to 5 days. This integration requires meticulous coordination between international freight forwarders and local partners to manage last-mile complexities.
COD, however, presents unique last-mile challenges, especially in emerging markets with fragmented logistics infrastructure. In India, where COD dominates e-commerce transactions, delivery agents must collect payments in person, increasing the likelihood of failed deliveries. To address this, companies implement cashless payment options at the doorstep, such as mobile wallets and digital payment gateways. Additionally, route optimization algorithms help minimize the number of return trips caused by payment failures. By understanding these dynamics, cross-border businesses can customize last-mile strategies for DDP and COD, ensuring customer satisfaction and cost-effective operations.