What is Blind Shipping? Definition and How to Use it to Your Advantage (2024)

What is Blind Shipping? Definition and How to Use it to Your Advantage (1)

By Shannon Callarman Last updated on August 14, 2023

What is Blind Shipping? Definition and How to Use it to Your Advantage (2)

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Table of Contents

** Minutes

What is blind shipping?

Why do retailers use blind shipping?

Benefits of using blind shipping

What’s the difference between blind shipping and dropshipping?

How does blind shipping work for ecommerce orders?

Outsource shipping and fulfillment to ShipBob

Is blind shipping right for you?

Blind shipping FAQs

In a typical dropshipping model, your customer’s orders are shipped directly from the manufacturer to the customer. Since packages often arrive with an invoice, customers might get their hands on information you don’t want them to see.

For example, let’s say you’re a reseller and a customer orders a box of light bulbs from you and your supplier ships the order. When it arrives, it includes the original invoice and the name of your supplier. The invoice shows a much cheaper price than what the customer paid you. In this instance, your customer might want to order directly from your supplier next time, which takes you out of the equation.

So how do you solve this problem? Blind shipping is a common dropshipping best practice that keeps your supplier anonymous. Read on to learn more about how blind shipping works.

What is blind shipping?

Blind shipping is a type of dropshipping method that ships orders directly from the manufacturer to the customer while keeping the name and identity of your supplier anonymous. This way, the customer assumes that it came directly from you.

Similar to white label services, there is no branding or labeling that identifies who your supplier is. To conduct a blind shipment, the shipment is prepaid and the request to ship blind is done before shipping. The name and contact information of the shipper (your supplier) is then taken off the bill of lading (BOL) before it gets shipped to its final destination.

Why do retailers use blind shipping?

Blind shipping is a common supply chain management technique that protects your business (and potential profits or recurring revenue) by keeping your supplier anonymous. This helps encourage your customers to order from you again and not directly from the source, letting you maintain the role as the middleman rather than losing customers to your supplier. Blind shipping also reduces the chance of competitors finding out what supplier you work with.

Benefits of using blind shipping

When dropshipping orders, there are several benefits of blind shipping that can protect your business and reduce the risk of retail supply chain issues.

1. Secure supply chain management

Blind shipping allows merchants to maintain a steady supply chain and reduces the risk of customers buying directly from the supplier. That way, you protect your business from losing customers by continuing to be the middleman. Note: Blind shipping can help secure your supply chain when dropshipping, but be aware that dropshipping can cause a lack of control over product quality and shipping times.

2. Maintain your competitive advantage

Blind shipping keeps your suppliers’ information a secret from competitors. If you have a great relationship with your supplier and they offer you a great price and/or the best products, your competitors could find out and look into working with your supplier so they can offer the same high-quality products to customers at a competitive price.

3. Maintain a hands-off approach

Dropshipping blind provides a hands-off approach to running your ecommerce business while protecting it. You don’t have to stock and maintain inventory yourself, and your supplier takes care of shipping orders for you while remaining anonymous. Note: Although this is a cost-effective logistics model, many ecommerce businesses choose to store inventory with a third-party logistics (3PL) partner for more control, reduced transit times, and fewer headaches.

What’s the difference between blind shipping and dropshipping?

It’s not uncommon for people to confuse the terms ‘blind shipping’ and dropshipping.’ Dropshipping is a shipping method that consists of shipping orders directly from the manufacturer to the customer’s door. The term ‘blind shipping’ is used to describe the practice of keeping the shipper anonymous by taking supplier information off the BOL before it reaches its destination.

Why is dropshipping unreliable?

The idea of not having to deal with managing inventory and handing off order fulfillmentto your manufacturer might sound appealing, but dropshipping comes with its own set of issues. Some of them include:

  • Quality control: Since orders are sent directly from the manufacturer, you lose control over the quality of your products. In the long run, this can damage your relationship with customers, especially if product quality is inconsistent after each purchase.
  • Order return issues: Some suppliers are unwilling to manage returns, which complicates matters if a faulty product is delivered to your customers. You might not have to worry about shipping the order, but you will still have to worry about processing returns.
  • Low margins: Unlike a wholesaler that sells in bulk, dropshipping suppliers are more expensive to work with because of the high logistics costs, including inventory storage, shipping insurance, and shipping costs, which ultimately cut into your profit margins.

How does blind shipping work for ecommerce orders?

For ecommerce orders, blind shipping is used when orders are delivered from the manufacturer directly to the customer. Here’s how the blind shipping process works:

1. The supplier replaces their name from the BOL with your company’s name.

2. The BOL is given to the consignee with the supplier information concealed.

3. The BOL is then given to the carrier and is shipped directly to your customer.

Outsource shipping and fulfillment to ShipBob

Although dropshipping blind has its advantages, it offers fewer fulfillment services and shipping options than working with a 3PL. ShipBob is a tech-enabled 3PL that provides retail fulfillment services including warehousing, inventory management, picking and packing, and shipping orders.

“When we first got started, we were dropshipping. It was nice because we had no money tied up in inventory, but we also had no quality control. With no control over the customer experience and very poor shipping times, we quickly realized dropshipping was not a long-term solution. It was good for proving out an early concept, but we had to move to a professional fulfillment company. ShipBob has fulfilled over 10,000 shipments per month for us.”

Gerard Ecker, Founder & CEO of

While manufacturers specialize in creating products using raw materials, 3PLs focus on supporting and scaling your business. Not only does a 3PL take care of all fulfillment-related tasks, storing inventory with a 3PL that operates international fulfillment locations can significantly reduce shipping costs and last-mile delivery times.

Is blind shipping right for you?

As an ecommerce business, the only time you would consider blind shipping is if you were dropshipping orders. Although some ecommerce businesses find success in dropshipping, it’s important to keep in mind that it’s a much different logistics model than working with a 3PL. Unlike dropshipping, outsourcing fulfillment to a 3PL can help better optimize your supply chain, gain more control, and provide a better customer experience.

Learn more about how fulfillment by ShipBob works and request pricing by clicking the button below.

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Blind shipping FAQs

Blind shipping is less complicated than you might think. Here are some of the most frequently asked questions related to blind shipping.

1. What is blind shipping?

What is Blind Shipping? Definition and How to Use it to Your Advantage (3)

Blind shipping is when an ecommerce business removes the name of their supplier from the BOL before a customer order is shipped directly to the customer. It is a common dropshipping best practice that helps keep customers ordering directly from an ecommerce business, rather than ordering directly from a brand’s supplier.

2. What is a BOL?

What is Blind Shipping? Definition and How to Use it to Your Advantage (4)

A bill of lading (BOL) is the invoice that’s included with a shipment. It often lists details about the goods being exchanged, as well as supplier and importer information. When an order is shipped blind, supplier information is removed before it reaches its final destination.

3. What is a double-blind shipment?

What is Blind Shipping? Definition and How to Use it to Your Advantage (5)

A double-blind shipment is when the supplier does not know where the product is being delivered to, and the customer does not know where the shipment came from. In a typical blind shipment, the supplier sees the customer’s contact information.

4. What is blind dropshipping?

What is Blind Shipping? Definition and How to Use it to Your Advantage (6)

Blind shipping is used in the context of dropshipping. Since the dropshipping model consists of shipping orders directly to the customer from the supplier, a blind shipment removes the supplier’s information before an order is shipped so the customer assumes it was sent directly from the retailer.

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What is Blind Shipping? Definition and How to Use it to Your Advantage (2024)

FAQs

What is Blind Shipping? Definition and How to Use it to Your Advantage? ›

Blind shipping is a type of dropshipping method that ships orders directly from the manufacturer to the customer while keeping the name and identity of your supplier anonymous. This way, the customer assumes that it came directly from you.

What is a blind shipment used for? ›

A blind shipment is when a seller (distributor) hides the identify of a shipping company from a buyer. In essence, the buyer does not know who or where his goods were originally shipped from. The buyer receives his goods as ordered and believes the shipment were sent directly from the seller.

Are blind shipments illegal? ›

Blind Shipment - Is blind shipment illegal? Absolutely not! Blind shipping is well within the bounds of legality. There are some information that need to be kept hidden, but it doesn't break any laws.

What is the difference between blind shipping and drop shipping? ›

Drop shipping is a shipping method used by shippers who do not store their own inventory. They ship directly from the supplier to the customer. Blind shipping is a type of drop shipping– where not only is the shipment sent directly to the customer, but that customer does not know the identity of the supplier.

What is blind fulfillment? ›

This helps conceal if a product was shipped from a third-party vendor. The third party vendor's information is removed from the shipping label and replaced with the seller's information. Therefore, the customer is “blind” to who fulfilled the order.

What is an example of a blind shipment? ›

Example of a blind shipment

If you're the shipper, you have to contact the freight forwarding company, make the payment, and request blind shipping. After your shipment clears customs, the carrier will remove information about the supplier from the original BOL, so the details aren't available to the customer.

Why do brokers do blind shipments? ›

A blind shipment describes a practice used when a shipper does not want a consignee to have access to information that identifies their supplier. Blind shipments can also conceal when a good is shipping from a third-party vendor rather than the distributor.

What are the disadvantages of blind receiving? ›

Major challenges in Blind Receiving:

Lack of complete inbound visibility. Risk of errors due to manual entry of consignment data. Risk of overstocking and reduced space availability. Risk of process chokepoints in both inbound and outbound.

What is a blind shipment fee? ›

A blind shipment is when a third party controls the movement of the freight but does not want the shipper or consignee to know the name of the other.

What is the purpose of a double blind shipment? ›

This is a type of blind shipment in which the shipper sends a shipment without knowing the ultimate destination and the consignee accepts the shipment without knowing the origin location. A reason to ship double blind is to protect the identity of the consignee and the shipper or supplier.

Is blind drop shipping faster? ›

Drop shipping saves you the extra leg in having to receive, re-package and re-ship product. This means that products will get to your customers faster, while saving you labour costs and shipping costs. It also means you don't need to keep inventory.

Does FedEx do blind shipments? ›

FedEx Ship Manager allows you to create blind shipments with ease. It's important to note that blind shipments may take longer to process than regular shipments. This is because the shipment will need to be held at a FedEx location until the recipient can be identified.

Does UPS do blind shipping? ›

Blind shipping with UPS offers businesses a secure and anonymous delivery option that helps protect supplier relationships and maintain confidentiality. By using a third party's name and address on the shipping label, businesses can prevent competitors from identifying the source of their products.

How to ship a blind shipment? ›

In blind shipping, the retailer or middleman takes the customer's order and payment, then forwards the order details to the supplier or manufacturer. The supplier ships the product directly to the customer using the retailer's address as the sender, concealing their own identity.

What is an example of blind? ›

Examples of blind in a Sentence

She was blinded as a child in a terrible fire. I was blinded by the sun as I came around the corner. He was blinded by love.

Can you blind ship with USPS? ›

Quite simply, blind shipping means that your products arrive at your customer's address from a supplier or distributor who remains anonymous, and your delivered orders will look as if they came directly from your company or store, whether via UPS, FedEx, or USPS.

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