Application Scenarios Comparison of DDP/COD: Differentiated Selection Models from Manufacturing to Retail

 Application Scenarios Comparison of DDP/COD: Differentiated Selection Models from Manufacturing to Retail

The applicability of DDP and COD varies by industry and trade scenario. For manufacturing, especially exports of large machinery and precision instruments, DDP is often preferred. These high-value, complex products require sellers to provide one-stop services as buyers may lack import clearance capabilities. For instance, a Chinese construction machinery enterprise used DDP to deliver excavators directly to African construction sites, including installation and debugging, addressing buyer concerns.

In retail, particularly for small-value, high-frequency transactions, COD is more popular. In cross-border e-commerce retail and FMCG exports, COD reduces buyer risks and attracts more consumers. For example, Southeast Asian e-commerce platforms widely use COD, allowing consumers to pay upon receipt, enhancing shopping convenience and security. Enterprises should establish differentiated trade term selection models based on product characteristics, market demands, and their own resources.