Blind Shipping

If you have been in the e-commerce business for some time now, you might already have heard about blind shipping or blind shipment. But it is still uncharted territory for many e-commerce business owners. In very simple words, blind shipping is a type of dropshipping. If you do not know what drop shipping is, it is a type of shipment where an e-commerce business pays the manufacturer to ship the ordered items directly to the customer who ordered them.

This way, the business owner can avoid a horde of fulfillment and shipping processes. But it comes with its own problems because if the customer sees the retailer’s address on the box, they can contact them directly in hopes of a lower price next time and skip the e-commerce business altogether.

This is where blind shipping comes in. It is a type of dropshipping where the details about the manufacturer or retailer are hidden from the customer. In this article, we will discuss in detail what blind shipping is and the pros and cons of this method of shipment. 

What is a Blind Shipment? 

As we already said before, blind shipment or blind shipping is a type of dropshipping that businesses usually use, although distinctively different from regular dropshipping. In regular dropshipping, the manufacturer or retailer directly ships items to your customer who ordered them. But there is a disadvantage to that.

Packages all come with invoices that carry the information of where it is shipped from and sometimes even the actual price of the items. If your customer sees those details, they might want to buy the products directly from your manufacturer the next time, getting rid of the middleman, which is you. This is where blind shipping comes in. Blind Shipping is used to keep all of your suppliers and manufacturers anonymous. 

In this method, your supplier’s name and other details are kept anonymous from your customer, and they assume that the package has been delivered to them directly from your business. The practice is much like white-label services.

If you want to blind-ship an item, you must inform your supplier before shipping. Then they will withdraw the name and other information about the shipper from the BOL (Bill of lading) before it is shipped.

This way, your customer does not get to know your supplier, and you can keep your business running smoothly without worrying about them choosing the manufacturer over your business. Of course, this method also comes with its pros and cons, which we will discuss in detail in this article. 

Why Do Retailers Use Blind Shipping? 

Well, as we have already discussed, the most important aspect of blind shipping is maintaining anonymity. In blind shipping, not only does the customer not know any information about the suppliers, but the supplier does not know anything about the customers.

The whole process is usually conducted through a third party who controls the shipping process of the freight. That way, your suppliers, manufacturers, etc., remain confidential, and your customers do not know anything about them. On the flip side, since the manufacturers and suppliers do not know anything about your customers, they cannot directly start a business with them, going over you. And your customers also cannot reach your supplier and manufacturer as they have no information about them. 

Blind Shipping is perfect for businesses that already use dropshipping and want to keep their customers and manufacturers anonymous from each other. It also helps them get recurring revenue as the customer keeps returning to them for more products if they are satisfied with what they get.

It builds your brand name and ensures you profit from your business without losing customers to your retailers or manufacturers. That is why many retailers in the e-commerce business tend to prefer this shipping method over normal dropshipping. 

Benefits of Using Blind Shipping 

Now that we have covered what blind shipping is and why many retailers use it, let us talk about some of the benefits you can get from using blind shipment. 

1. Safe supply chain

Using blind shipping will ensure that your company’s supply chain is absolutely secure. There is no way that a customer can find out who your supplier is and buy directly from them. This means that there will not be any disruptions in the number of customers because of it, and your supply chain will remain secure. 

2. Competitive advantage 

The process of blind shipping also makes sure that you retain an advantage over all of your competitors. Let us say you have a really good relationship with your supplier and get really good prices as a result. Suppose one of your competitors finds out who these suppliers or manufacturers are through a dropshipping bill of lading (BOL). In that case, they can try and jeopardize the relationship between you and your supplier to gain a competitive advantage. But if you use blind shipping, you do not fear that happening as all of the information about your manufacturer or retailer is anonymous in blind shipping. It gives you a competitive edge as your competitors will not be able to identify and try to make a deal with your manufacturer or supplier. 

3. Reduces your workload 

One of the many reasons retailers love to use dropshipping or the blind shipping method is because it helps them keep a hands-off approach. Since the products are delivered to the customers directly from the manufacturer, the retailer does not have to worry about another fulfillment or shipment method. You will not even have to maintain inventory anymore. In blind shipping, your supplier remains anonymous, but either they or a third party takes care of the shipment. On the flip side, you should know that you will not have much quality control over the products, packaging, and shipment if you use these methods. 

Blind Shipping Vs. Dropshipping

 

As you might have already realized, dropshipping and blind shipping are similar in many aspects, and some people sometimes confuse the two. It is true that blind shipping is a variant of dropshipping, but it is also very different.

Dropshipping refers to a shipping method where the shipment of a product is done directly to the customer from the manufacturer. It removes any need for a fulfillment and shipment plan for the business. Out of convenience, a lot of businesses choose this model of shipment.

But the problem with this model is that the manufacturer’s name and other contact information are written in the bill of lading So it becomes very easy for the customer to contact the manufacturer or your retailer for their business next time. 

This is where the blind shipment method differs from dropshipping. In this method, a third party usually ships your items from the manufacturer to the customer and they withdraw the contact information of the manufacturer or retailer from the bill of lading. So neither your customer nor your manufacturer can contact each other for business.

Blind shipping ensures that the customers return to your business when they need products again and not go directly to the manufacturer. It can be more beneficial for your business and ensure you get recurring revenue from returning customers. This is the main difference between dropshipping and blind shipping. 

What About Double-Blind Shipments? 

Now that we have talked a lot about blind shipment, it is time for us to talk about another variant of the blind shipping method – Double Blind Shipping. In this shipping method, not only is the customer unaware of the details about the manufacturer or supplier where the product is shipped from, but the manufacturer does not know the customer’s address as well.

The Bill of Lading does not include the address of the manufacturer. Only you and your career company will know the address to which the product is supposed to be delivered. This type of blind drop shipping works because, this way, neither your customer nor your manufacturer knows anything about each other. Your customer cannot contact your supplier or manufacturer for business deals, and your manufacturer will not be able to contact your customer for one either. This shipment process is even more secure than the regular blind shipment. 

How Does Blind Shipping Work for E-commerce Orders? 

The process of bind shipping is not all that different from dropshipping in e-commerce, but there are just a few more added steps. In dropshipping, the order is directly delivered to the customer from the manufacturer or the supplier through a consignee.

In blind shipping, whether delivered by the manufacturer or a third party, all the manufacturer’s details are removed from the BOL and replaced by your company’s details to make it seem that the delivery came from you. After that, the consignee checks if the details are correct and forward it to the final receiver of the package – your customer. But, if you want to use blind shipping instead of regular drop shipping, you also have to pay extra charges to your supplier or manufacturer for them to remain anonymous. 

Is Blind Shipping Right for You? 

You must remember that you can avoid this hassle altogether if you work with a 3PL fulfillment partner. That way, you can retain more control over your orders, packaging, and shipment. Businesses should only consider switching to blind shipping when they already use drop shipping as their shipping method.

You have to be sure that drop shipping or blind shipping grants you a logistical advantage before switching to any of these methods. As 3PLs are safer for shipment and better for optimizing your supply chain, you should think quite a lot before deciding which shipment method you want to go with.