Cross-border checkout is the highest-abandonment segment for most Plus merchants. The two main strategies are DDP (Delivered Duty Paid — you absorb customs upfront and bake it into the price) and DDU (Delivered Duty Unpaid — customer pays duties on delivery). We wanted real data on which converts better.
The setup
12 Plus merchants shipping to EU, UK, Canada, Australia. Each ran 30 days on DDP, then 30 days on DDU (or vice versa, randomized order). 18,000 cross-border carts measured. Customs Notice block surfaced the relevant policy at checkout in both cases.
The result
DDP converted 18% better on average. The lift was bigger for higher-AOV merchants ($150+) and smaller for lower-AOV merchants (sub-$50, where the absolute customs amount felt insignificant either way). Three merchants saw equal or better conversion on DDU — interestingly, all three were in categories where shoppers expected to pay duties (electronics).
Why DDP wins (usually)
Surprise is the killer. When customers see a $40 duties charge at the door, they blame you. They dispute the credit card charge. They never reorder. DDP eliminates the surprise — the duties are baked into the price they already saw at checkout.
Why DDU sometimes wins
In categories where shoppers expect to pay duties (electronics, high-value collectibles), they've already mentally budgeted for the duty charge. Quoting a duty-inclusive price feels artificially high. DDU lets them see the 'real' product price and pay duties as expected on delivery.
The hybrid play
Our recommendation: DDP for cart values under $200 (where surprise dominates), DDU for cart values above $500 (where expectation dominates). The Customs Notice block supports cart-value conditional rules — set the threshold once and forget.