What is blind shipping? Know everything about supply chain

Have you received a package and wondered about its origin? Sometimes there is no clue on the package about its origins. No return address, no supplier details. It's just the product/item you ordered without any traces of its origin.

You may consider it a shipping error! But it isn’t! It's the work of 'blind shipping.' This is a smart, logistical tactic used by many businesses to deliver products without revealing their identities. This isn’t about hiding anything nefarious or being sneaky.

This is done purposefully by brands to bring efficiency in operations and deliveries and to protect critical information. Blind shipping in fact, results in enhanced customer satisfaction. Sounds exciting? Let's learn more about this interesting method. Let's explore the world of blind shipping.

What is Blind Shipping?

A blind shipment occurs when a seller keeps the original producer or supplier’s identity hidden from the customer. This structure is generally used or followed by distributors who have a system of shipping products directly from the producer to the customer but don’t want the customer to access the supplier’s details. Blind shipments are also used to hide the fact that a product is sourced from a third-party vendor.

To execute a blind shipment, the third-party vendor’s information is omitted from the shipping label and replaced with the seller’s details. This ensures the customer is unaware of the actual origin of their order, effectively keeping them blind to the source of the shipment.

Let's look at a case study of a retailer named 'Bob.' He is a dropshipper who dropships products from a manufacturer directly to the customer. Now by using Blind Shipping, Bob can ensure his customers get the products delivered to them with his branding material and address without the customers getting any hint of involvement of the manufacturer in this process.

Purpose of using Blind Shipping

Blind shipping is used when it is needed to keep the identity of the original supplier hidden. There could be multiple reasons for it. One could be that the retailer wants the customer to believe that the products come directly from them, rather than an external supplier. Another could be that the retailer wants to enjoy a competitive advantage by ensuring only they have access to the supplier.

Benefits of Using Blind Shipping

Maintain the integrity of the supply chain:

With blind shipping, it becomes easier for a retailer to prevent the customers from buying directly from the supplier. Blind shipping prevents the customer from knowing any details of the actual supplier. Hence, there is no chance of the customer contacting the supplier.
Build a competitive edge:

Blind shipping is a great way to rise above the competition. Imagine you found a supplier who is highly affordable. This enables you to offer a lower price to the customer and gives you an advantage over your competitors. With blind shipping, you can prevent your competitors from knowing the details of your supplier. Thus you end up enjoying a competitive advantage.
Become risk averse:

In blind shipping, you send products directly from the supplier to the customer. So, you don’t have to stock inventory by yourself. This saves you additional costs and troubles.

How can I initiate a blind shipment?

A blind shipment requires two separate Bills of Lading. The first bill is needed when the shipper collects the goods. The second bill is used by the carrier while delivering the product.

In case of the supplier being the blind party, the first Bill of Lading will be termed as the blind Bill of Lading. And when the consignee is the blind party, then the second bill becomes the dummy bill and the first bill is regarded as the real bill of lading. During the transit, the carrier switches the BOL to ensure the delivery is accurate.

Should you consider using Blind Shipping?

The benefits of blind shipping are quite straightforward. Blind shipping is useful when you want the customer to not know the manufacturer details. This aspect is crucial in dropshipping. So blind shipping is a great practice to have when you are in dropshipping.

However when you are operating as an ecommerce business blind shipping isn’t highly lucrative. In fact aligning with a 3PL can be a more fulfilling option. 3PL service providers offer you more control on the overall process and make the supply chain more optimized. A key advantage of a 3PL is the better customer satisfaction.