Blind shipping has risen in popularity in recent years, with companies becoming more possessive about keeping their business relationships private and protected. The shipment method hides the sender and recipient’s identities to protect supplier networks. Blind shipping has proven its worth by allowing businesses to maintain confidentiality while ensuring the timely delivery of goods.

Although Blind shipping has made its place among large-scale e-commerce businesses, its widespread adoption is still far from reality. Even some of the organizations are unaware of blind shipping and are using traditional methods, putting their confidentiality at stake. But once they know the benefits of this shipment method, they will definitely find it valuable and effective. 

So, if you’re the one starting out your e-commerce business and unaware of this hidden shipment method, we won’t make it a secret anymore. In this starter guide, we will explain the basics of blind shipping, its process, benefits, challenges, implementation tips, and more.

What is Blind Shipping?

Blind shipping is a specialized shipment method where customers remain unaware of the original supplier’s identity. Under this method, the supplier’s details are replaced with retail information across labels and documents. Simply put, your supplier will ship your product, but blind shipping will make it appear that it is sent directly by your brand. 

For instance, when a customer places an order for a bedsheet from your brand website, the bedsheet will be shipped from your supplier’s warehouse, but the shipping label shows your brand details. 

Apart from Blind shipping, there is a more advanced approach to this shipment method – Double-blind shipping. Here’s what it is and how it is different from blind shipping — 

Double-blind shipping is a top tier of blind shipping that hides both the supplier’s details from the customer and the customer’s information from the supplier. This method includes a 3PL (Third-party logistics) provider managing the shipment and replacing all the information on the document. Instead of these, third-party information will appear on the label, keeping both the supplier and the customer unaware of each other’s identities. 

Is Blind Shipping Legal?

Yes, blind shipping is legal. It’s a common practice in e-commerce and logistics where the supplier’s details are hidden from the customer. This means the customer only sees the seller’s information, not the manufacturer or supplier. Blind shipping helps businesses protect their suppliers’ details and control their supply chain. 

However, while blind shipping is legal, it’s important to comply with local laws and regulations. Each country or region may have specific rules regarding shipping practices, labeling, and documentation. Businesses must ensure they follow these regulations to avoid legal issues.

For example, in some places, there might be requirements for transparency in labeling or disclosure of the origin of goods. Businesses need to be aware of these requirements and ensure that their blind shipping practices do not violate them.

Additionally, businesses should also be transparent with their customers about their shipping practices. While it’s not necessary to disclose supplier details, providing clear and accurate information about shipping times, costs, and processes is essential for maintaining customer trust.

Apart from this, here’s what you should consider before implementing blind shipping:

• Accurate Documentation: Make sure your branding is on the front or center side. Additionally, custom paperwork and shipping labels should be added to identify the actual shipper for import and export regulations. 
• Product Safety and Regulations: Despite confidentiality in your shipping, you are still responsible for maintaining the product’s safety standards and adhering to industry-specific regulations.
• Country-specific Restrictions: Some items are subject to restrictions or additional duties when it comes to international shipping. Research the regulations and local laws in your targeted markets. 

Important Note: Laws and regulations related to product liability and intellectual property can differ depending on the region. It’s highly advisable to seek advice from a qualified legal expert. They can provide guidance on the specific legal issues that may affect your business, products, and the markets you aim to reach.

How is Blind Shipping Different from Dropshipping?

Dropshipping is a popular eCommerce practice where online shops act as a marketplace for manufacturers’ products. In this setup, the eCommerce stores don’t keep the products in stock. Instead, when a customer places an order, the shop buys the item from a manufacturer and has it shipped directly to the customer. This system is called out-working.

Sounds similar to blind shipping! Isn’t It? But both these shipping methods have plenty of distinctions. So, here are the main differences between Blind shipping vs Dropshipping: 

Customization and Branding Costs

Customizing and branding products can quickly become very expensive. This is one reason why many dropshippers avoid blind shipping. Blind shipping hides the supplier’s details from the customer. While this method saves money in the short term, it has its drawbacks.

Risks of Not Using Blind Shipping

Not using blind shipping can make businesses vulnerable to losing customers. When buyers see the manufacturer’s return address on packages, they might contact the supplier directly for lower prices. This can cut out the dropshipper entirely. Additionally, competitors might find your manufacturers and start offering similar products, weakening your brand’s power.

Challenges of Blind Shipping

Blind shipping tends to have higher costs. It also adds an extra step in the fulfillment process, increasing the risk of delays and shipping errors. Finding a reliable company to handle blind shipping ensures timely and safe delivery.

Customer Service and Marketing

Both dropshipping and blind shipping require strong customer service and marketing efforts. However, dropshipping has an advantage: there are no minimum order volume restrictions. You can order from your suppliers even if a customer only needs one part of a product. Conversely, blind shipping can be costly for small orders due to the minimum handling costs.

Business Benefits of Blind Shipping

If you run an ecommerce store for a traditional retail business, blind shipping can offer several benefits. It helps maintain brand credibility and enhances customer loyalty, making it an excellent choice for many businesses.

Ensuring Brand Credibility

Customers often expect to receive unique products that seem to come directly from the retailer they chose. If customers find out their items come from a supplier that provides the same products to many retailers, it can hurt your brand’s exclusivity and perceived value.

Blind shipping helps create the illusion that the product is unique to your store. This is especially important in dropshipping, where products are shipped directly from third-party manufacturers. 

For example, if a customer orders a popular mini smoothie blender from your ecommerce health shop, blind shipping ensures they receive it with your shop’s branding. This strengthens the customer’s connection to your brand and reinforces loyalty.

Competitive Advantage 

Traditional shipping methods often reveal important details on packaging, such as the supplier or manufacturer’s information. This can be risky because a competitor could place an order, see this information, and contact your supplier. They might then use the same supplier for their business and possibly negotiate better deals.

Blind shipping solves this problem by keeping the supplier’s identity hidden. When you use blind shipping, your customers only see your business details, not the supplier’s. This helps protect your supply chain, maintain your competitive advantage, and safeguard your profit margins.

Safeguard Supplier’s Relationships with Customers

Double-blind shipping is a strategy used to protect business relationships, especially in B2B (business-to-business) ecommerce. It addresses a key issue: keeping suppliers and customers from bypassing your business.                                 

Double-blind ensures that neither your suppliers nor your customers can see each other’s details. This means the supplier doesn’t know who the end customer is, and the customer doesn’t know who the original supplier is. This way, both parties remain unaware of each other.

Potential Risks in Blind Shipping

While blind shipping offers many advantages, it’s important to be aware of its potential challenges. So, here are some risks involved in Blind shipping: 

Reduced Quality Control

Since you don’t handle your products directly, maintaining consistent quality can be difficult. It’s essential to vet your suppliers and conduct regular quality checks thoroughly.

When using a fulfillment center for blind shipping, ensure that they have experience with this process. Not all fulfillment centers offer blind shipping, so choosing a partner with a proven track record is crucial. Ask about their inspection processes and how they handle defective products. This helps ensure that your customers receive high-quality items.

Longer Shipping Times and Reduced Flexibility

Blind shipping offers numerous advantages, but it also comes with certain challenges. One significant issue is the potential for longer shipping times and reduced flexibility. Shipping times can increase if you rely on an unsuitable third-party logistics company. This is especially true if the suppliers and fulfillment centers are not well-placed geographically.

To avoid this problem, make sure your fulfillment center has warehouses strategically located to ensure fast and efficient shipping. Properly chosen locations can significantly cut down on shipping times and improve the overall efficiency of your operations.

Potential for Customer Issues

Another challenge with blind shipping is the potential for customer issues. If a customer has a problem with a product or shipment, resolving the issue can be more complicated. This is because you need to coordinate between the supplier and the customer, which can lead to delays and misunderstandings.

To minimize potential frustrations, it’s crucial to have an efficient blind shipment return process. Make sure there is clear communication between you, your supplier, and the fulfillment center. This ensures that everyone is on the same page and that customer issues are handled quickly and effectively.

How to Set Up a Blind Shipment for Your E-commerce Business?

Setting up blind shipments can add some complexity to your ecommerce business, but it is a common practice that can be managed with the right approach. Here’s a simple guide to help you start with blind shipping.

Step 1: Prepare Shipping Documents

To set up a typical blind shipment, you need two versions of a Bill of Lading (BOL). The BOL is a key shipping document that includes details about the origin, destination, and the goods being shipped.

• Real BOL: This document contains all accurate information about the shipment, including the supplier’s details.
• Dummy BOL: This document hides the supplier’s details and instead lists your company as the shipper.

Step 2: Coordinate with Your Supplier

First, reach out to your supplier and explain the blind shipping process. Make sure they understand how to handle the two versions of the Bill of Lading (BOL). The supplier needs to know which BOL to present when the carrier picks up your goods. Proper coordination with your supplier ensures that the correct information is used, maintaining the confidentiality required for blind shipping.

Step 3: Coordinate with Your Carrier

Not all carriers are equipped to handle blind and double-blind shipments, so choosing one that works with your preferred shipping method and has no extra requirements is essential.

After finding a suitable carrier, contact them to set up the blind shipment. Here’s a simple outline of the process:

• Collection: Arrange for the carrier to collect the shipment using the dummy BOL. This document hides the supplier’s details and lists your company as the shipper.
• In-Transit Swap: During transit, the carrier switches to the real BOL for accurate routing. This document contains the supplier’s information needed for proper shipment handling.
• Final Delivery: Before final delivery, the carrier reverts to the dummy BOL, ensuring the blinded party (typically your customer) never sees the supplier’s information.

Step 4: Implement and Monitor the Process

Once you have established a partnership with your supplier and carrier, the next step is to ensure that they effectively manage the shipment process while using the correct Bill of Lading (BOL) at every stage. 

Make sure that your supplier and carrier are processing shipments correctly. This involves using the appropriate BOL that conceals the shipment’s origin.  To maintain high standards, consider incorporating quality control checks. 

Your customer service team needs to be well-trained in handling inquiries related to shipping. They should be equipped to address customer questions without disclosing details about the blind shipping arrangement. Continuously review your blind shipping process to identify areas for improvement. Regular assessments will help you refine operations, ensuring that your system remains effective and secure. 

Conclusion

Blind Shipping is exceptionally helpful for businesses looking to maintain confidentiality in their supply chain and manufacturer relationship. By limiting the supplier’s information to customers, the business ensures that its sources remain private and protected from potential competition.

Whether you choose blind or double-blind shipping, the point remains to intelligently implement them to bring logistics and supply chain benefits to businesses. 

So, through this article, we outlined the process of blind shipping, its benefits, risks, and legality to help you decide whether it’s worth it for your e-commerce business. If you want supply chain protection while retaining control of product flows, blind shipping is the go-to shipment option for you. 

We tried to explain things in the simplest way possible. If you still have questions, you can contact our Ecommerce experts and Shopify developers. We at Malicy App Developers offer comprehensive E-commerce development services at affordable prices.           

FAQs

What is the Purpose of Blind Shipments? 

The purpose of blind shipments is to keep the identity of the supplier hidden from the customer. This is often done to protect the business’s supply chain and prevent customers from bypassing the seller to buy directly from the supplier. It helps maintain competitive advantage and business relationships by ensuring that the intermediary’s role remains crucial.

Why is Blind Shipping Free? 

Blind shipping itself is not necessarily free. The term “blind shipping” refers to the practice of hiding the supplier’s details, not the cost. However, some businesses might offer it as a value-added service to attract customers and retain confidentiality. Any associated costs are usually factored into the overall pricing or covered as part of the service.

What is a Dummy Bill of Lading? 

A dummy Bill of Lading (BOL) is a document used in blind shipments. It lists the shipment details, like the contents and destination, but omits or alters the supplier’s information. This way, the customer sees only the intermediary’s details, not the original supplier’s. This helps maintain the confidentiality of the supply chain.

What Paperwork is Needed for Blind Shipment? 

For a blind shipment, you need standard shipping documents such as the Bill of Lading, packing slips, and any necessary customs forms. These documents should be carefully prepared to ensure that the supplier’s information is not visible to the customer. Clear communication with the shipping carrier is also essential to ensure the blind shipment process is correctly followed.

What is an Example of Blind Shipping? 

An example of blind shipping is when a retailer sells products online, but the items are shipped directly from the manufacturer without showing the manufacturer’s details. The customer receives the product with only the retailer’s information, ensuring the supplier remains anonymous. This is common in drop shipping and helps protect business relationships and supply chains.

What is a Blind Packing Slip? 

A blind packing slip is a document that accompanies a shipment, listing the contents without revealing the supplier’s details. It shows the items shipped, quantities, and any other necessary information, but it only includes the intermediary’s or retailer’s information. This ensures that the customer focuses on the seller rather than the original supplier.