Every overseas wholesale quote comes with a three-letter acronym attached — DDP, DAP or FOB — and that acronym decides more about your final cost than the unit price does. Suppliers rarely explain the difference, because the difference is usually in their favor.
Here is what each term actually means for a boutique buying stock, in plain English, and which one to ask for at your size.
The quick answer
- DDP (Delivered Duty Paid) — one price, goods arrive at your door, duties and customs already handled. The right default for most boutiques.
- DAP (Delivered At Place) — the goods arrive, but you clear customs and pay the duties when the carrier presents the bill. Looks like DDP on the quote; isn't.
- FOB (Free On Board) — you take over at the origin port: freight, insurance, customs, duties, all yours. Cheapest per unit, most work, and only worth it at real volume.
What each term actually means
| DDP | DAP | FOB | |
|---|---|---|---|
| Who books international freight | Supplier | Supplier | You (via a freight forwarder) |
| Who clears US customs | Supplier | You | You |
| Who pays import duties | Supplier | You | You |
| Extra bills after you pay the quote | None | Duty + brokerage on arrival | Freight, insurance, duty, brokerage |
| Suits | First orders, small shops | Experienced importers | Container-level volume |
DDP vs DAP: the one-letter difference that bites
DDP and DAP sound interchangeable and both promise door-to-door delivery. The entire difference is customs: under DAP, when the shipment lands, the import entry is your job. In practice that means a customs broker's invoice, the duty bill itself, and storage charges if the goods sit at a facility while the paperwork gets sorted.
Since the US ended the de minimis exemption, every commercial shipment — whatever its value — needs a formal customs entry with a 10-digit HTS classification. There is no small-order shortcut anymore. If you have never classified a garment or posted a customs bond, DAP turns your first order into a crash course you didn't sign up for. (What the duty itself costs in 2026 is its own topic — see what boutique buyers actually pay in tariffs.)
Rule of thumb: never accept a DAP quote believing it's DDP. One letter, very different final bill.
DDP vs FOB: unit price vs landed cost
FOB always shows the lowest number on the quote, because the number leaves most of the journey out. From the moment the goods are loaded at the origin port, everything is yours: ocean or air freight, insurance, US customs clearance, duties, brokerage fees, and the last-mile truck.
For a container-level importer with a freight forwarder on retainer, that control is exactly the point — at volume, managing your own freight genuinely lowers per-unit cost.
At boutique volume, the math usually flips. On a $1,000 order, a broker's entry fee alone commonly runs $100–200, duties on apparel from China can add a third or more of the goods' value, and freight for a small shipment prices badly. The FOB "saving" evaporates, and you spent a week learning customs terminology to achieve it.
Compare landed cost, not unit price. DDP folds everything into one number you can set your retail margin against before you order.
What about DDU?
You will still see DDU (Delivered Duty Unpaid) on some suppliers' quotes. The term was officially replaced by DAP back in 2010, but it never fully died in sourcing conversations. Treat DDU exactly as DAP: delivered, duties not paid, customs is your problem.
Which term fits a boutique
- Choose DDP if you are ordering at shop scale, you want one final number, and you'd rather spend your time selling than classifying HTS codes. This covers most boutiques, most of the time.
- Choose FOB if you move pallet-to-container volume, you already work with a forwarder and broker, and per-unit freight savings outweigh the fees and admin.
- Accept DAP knowingly or not at all. It is a legitimate term — but only if you have a broker lined up and you've budgeted the duty before you commit.
For what it's worth, this is why every price GoodBase quotes is DDP: duties and clearance included, flat $39 shipping (free over $600), door to door by air in 10–21 days. The number you see is the number you pay — the same logic we apply to selling wholesale rather than dropshipping.
FAQ
Is DDP more expensive than FOB? Per unit, on paper, usually yes — because the FOB price excludes freight, duties and clearance. On total landed cost at boutique volume, DDP is typically equal or cheaper once broker fees and small-shipment freight are counted, and it can never surprise you after the fact.
Who pays customs duties under DAP? The buyer. The supplier delivers to your address, but the import entry, the duty bill and any brokerage fees are yours. If a quote says DAP (or DDU), budget for duties on top.
Is DDU the same as DAP? Functionally yes. DDU was replaced by DAP in the 2010 Incoterms revision, but suppliers still use the old name. Either way: duties unpaid, customs on you.
Do small orders still skip customs under the $800 de minimis rule? No. The US ended the de minimis exemption on August 29, 2025 and made the change permanent in 2026. Every commercial shipment now goes through formal entry and pays duty, whatever its value.
Want to see what DDP feels like in practice before committing to a full order? Our sample kit is five styles of your choice, $69 all-in, duties included. See the sample kit →