What Is A Blind Shipment?

In a dropshipping model, it’s a typical situation when your customer places an order from you, but the shipment is from your supplier directly. The package usually arrives at the customers attached with invoices, which show information such as supplier name, address, original price, and so on. This may result in the loss of your customer resources, as your customer may purchase his goods directly from the supplier.

So how to solve this problem? The answer, blind shipment is the right topic we will discuss in this guide.

What is Blind Shipment in Trucking?

Blind shipping is a dropshipping model typically when a reseller request to ship goods directly from the producer but keep the original supplier information hidden.

1. How Does It Work In e-commerce?

In the e-commerce model, customers will receive their documents only with the e-commerce owner’s information. Here’s how the blind shipping process works:

A distributor or owner runs an e-commerce store and deliveries goods directly from his supplier. Then he needs to replace the information with his own in invoice documents. Then the document will arrive at the consignee without any valuable information about the supplier or manufacturer.

2. Blind Shipment Example

Suppose that you are a trader and your customer places an order for a package of toys. The case is that, if you’re the shipper, you have to contact the freight forwarder to arrange the shipment.

After clearing customs, the forwarder will remove the supplier’s information from the original BOL, so the details aren’t available to the customer. This is exactly an example of a blind shipment. It prevents your customers from circumventing you and directly reaching out to your supplier to purchase products at a lower price.

3. What Is A Double-Blind Shipment?

Double-blind shipping can be seen as an advanced version of blind shipping. It’s applied to the situation when a third party ships goods to end customers. Typically, the shipper and the end customer are clients of the third party. Therefore, the shipper is unaware of the information about the end customer; and the end customer is blind to the origin of the shipper.

What Are The Advantages & Disadvantages Of Blind Shipment

Everything has its pros and cons, so does the blind shipment.

1. Its pros mainly reflected in the following points:

  • Competitive Advantage

Typically when you dropship goods to customers, your supplier will deliver essential details like price and contact information, which may result in the disclosure of the valuable parts. While remaining such information hidden at least guarantees your product market is safe without the pressure of openness of market competition.

  • Possibility for Retaining Clients

The anonymity of blind shipment protects your customers from placing orders directly from the manufacturer, which to some extent increases the possibility for remaining customers.

  • Higher Profit Margin

Similarly, blind shipping will not require any inventories and employees. It all is about looking for customers and placing orders. In addition, you can set prices and Min.QTY without suppliers, which spares much more room for a higher profit.

2. The cons of it are mainly as follows:

  • Chances of Making Mistakes

It is because of he complexity that may increase the chances of making mistakes. Especially when the mistake has been made, nobody will be willing to bear responsiblity for his fault. The most commen ones would be the wrong Bill of Landing. As the BL serves as the most important document in clearance process, just one error will lead to the failure of picking up goods. Thus, at worst, you’ll loss a customer.

  • Little Control of the Process

As for the trader, reseller, or a third party, if there is no inspection by yourself, you may have little idea of the product quality, production schedule or the shipment. Losing control can lead to broken contracts and customer relationship.

What Is The Difference Between Blind Shipping And Dropshipping?

The two shipping terms vary in the following aspects:

As above mentioned, blind shipping is used when there is a need of keeping the original shipper anonymous, usually for distributors and retailers. It also requires the freight forwarder, or as it says the carrier, to operate the relevant processes. While dropshipping is an order processing method in which e-commerce companies outsource the procurement, warehousing, and distribution of goods to a third party, usually a supplier. Therefore, dropshipping has a clearer system and there is no need for any hidden information. Thus, the cost of dropshipping is lower.

In addition, the two are obviously different modes of operation. One is distributors, which involves more parties and a more complicated process. The other is to e-commerce owners or rather say, the supplier, which requires no other parties or worries for the original supplier.

Both blind shipping and dropshipping require a number of investments in customer service and marketing. Nevertheless, dropshipping has the greatest strength that there is no minimum quantity. Relatively, the cost of blind shipping will be unnecessarily expensive when delivering small quantities of items.

Should You Consider Blind Shipping For Your Online Business?

With the development of international trading, blind shipment serves as a good platform for those who have no production qualification, like distributors, traders, and third parties.

However, blind shipments have their own restrictions too. In practice, the carriers will place restrictions on blind shipments to ensure the bill is issued correctly. He may accept a false name of the company but the city and zip codes must be right. Hence, it is a bit more complicated compared to traditional shipping.

So before you choose blind shipping, always remember to get these specifics understood.

Conclusion

In an e-commerce business, whether it is blind shipment or dropshipping, the logistics should be placed in the first place.

Our company has professional logistics services. We have many international logistics companies that have cooperated for many years and can provide you with different choices. Moreover, our third-party logistics costs are more transparent, including only packaging costs and freight costs, which are also applicable to our 17 3PL warehouses around the world.

Honest Fulphilment enables you to automate logistics for your sales channels with a one-stop cloud shipping tool. Any helps, please contact us.

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