Blind Shipping: Definition and Importance - ChicagoShipper

Definition of Blind Shipping

In a typical drop shipping model, a customer’s order is shipped directly from the manufacturer to the customer. Packages often arrive with an invoice, so customers may receive information that should not be seen.

And here’s when they can opt to what we call drop shipping. Simply put,  blind shipping is a shipping method in which the sender and/or recipient’s ID and address  are hidden from the other party. While blind shipping has several advantages, it has its own challenges for both shippers and carriers.

Same with white label services, which is when the product or service removes its brand and logo from the final product and instead uses the brand desired by the buyer, there is also no branding or labeling saying the information of the supplier with the blind shipping.

The shipper’s (supplier) name and contact information will be removed from the bill of lading (BOL) before it is shipped to its final destination.

Why do Suppliers Choose to do Blind Shipping?

Blind shipping is a common supply chain management technique that protects businesses (and potential profits or recurring revenues) by keeping suppliers anonymous. This allows the customer to continue the order instead of ordering directly from the source, thus maintaining the role of intermediary without losing the customer to the supplier. Blind shipping also reduces the chances of competitors finding suppliers to work with.

Advantages of Blind Shipping

There are many advantages you may take advantage of with this kind of shipping, to help secure your business and possibly prevent any risk on the retail supply chain.

  • Protected Supply Chain Management

Blind shipping allows merchants to maintain a stable supply chain and reduce the risk of customers buying directly from their suppliers. In this way, you protect your company from losing customers as an intermediary.

Note: Blind shipping helps protect your supply chain with drop shipping. However, keep in mind that drop shipping can lead to uncontrolled product quality and delivery. 

  • Maintained Competitive Advantage

Blind shipping keeps supplier information secret from competitors. If you have a good relationship with your supplier and they offer you good prices and the best products, your competitors may consider finding and cooperating with your supplier.

  • Maintained Hands-Off Approach

Dropshipping blinds provide a practical approach to running  while protecting your e-commerce business. You don’t have to keep and maintain your inventory yourself, the supplier processes the delivery order and remains anonymous.

Difference Between Blindshipping and Dropshipping

 Blindshipping and Dropshipping can be confusing at times. Drop shipping is a shipping method that delivers orders directly from the manufacturer to the customer’s front door. The term “blind shipping” is used to describe the anonymity of  the shipper  by removing the supplier information from the BOL before arriving at the destination. 

Why is Dropshipping Undependable? 

The idea that you don’t have to deal with inventory control or manufacturer order processing may sound appealing, but dropships have their own problems. Some of them are: 

  • Quality Assurance Control

Orders are shipped directly from the manufacturer, so you cannot control  the quality of your  product. In the long run, this can undermine customer relationships. Especially if the quality of the product  is incorrect on all purchases. 

  • Possible Return Issues

Some suppliers are reluctant to manage returns, which makes things difficult when a defective product is delivered to a customer. You may not have to worry about shipping your order, but you do need to worry about handling returns. 

  • Low Profit Margin

Different from bulk-selling wholesalers, dropshipping suppliers are much more costly to work with because of the high cost of logistics such as warehousing, transportation insurance, and transportation costs, which ultimately reduces profit margins. 

How Blind Shipping is applied to E-Commerce Orders? 

Here’s how blind shipping works for E-Commerce businesses: 

  1. The supplier replaces his name from  BOL with your company name.
  2. The BOL is passed to the recipient with the supplier information hidden.
  3. The BOL is then handed over to the carrier and sent directly to the customer.

Is blind shipping suitable for you? 

Being an e-commerce company, consider blind shipping only when you place an order for drop shipping. Although some e-commerce companies have been successful in drop shipping, it’s important to remember that it’s a very different logistics model than when using 3PL. 

Third-party logistics  in logistics and supply chain management (abbreviated as 3PL or TPL) is the use of third-party businesses by companies to outsource the elements of sales, warehousing, and fulfillment services.

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