The dropshipping business has grown quite well in recent years due to the rise in the e-commerce business, upfront investment in dropshipping startups, advancements in automation, a flourishing global consumer base, and demand for flexibility.
The dropshipping market, valued at $155.6 billion in 2021, is likely to increase at a CAGR of 27.1% from 2022 to 2031 to reach $1670.1 billion.
Dropshipping has several methods, among which blind shipping is one of the best practices in supply chain management. Read further to clearly understand the concept of blind shipping and its various other elements.
Understanding the Difference Between Dropshipping and Blind Shipping
The terms “drop shipping” and “blind shipping” are often used interchangeably, but they technically refer to slightly different concepts.
Drop shipping refers to the practice of an e-commerce retailer fulfilling orders by having the product shipped directly from a third-party supplier or manufacturer, instead of from the retailer’s warehouse. In this case, the retailer never handles the product but is responsible for customer service, marketing, and pricing.
Blind shipping refers explicitly to a subset of drop shipping in which the identity of the supplier or manufacturer is kept hidden from the end customer. The shipment arrives at the customer’s address with no branding or identification of the trustworthy source of the product.
Why the Retailers often Prefer Blind Shipping?
Retailers use blind shipping to protect their brand and relationship with their customers. Blind shipping allows the retailer to have products shipped directly to their customers without revealing the actual supplier or manufacturer of the product. This can help maintain the illusion of a product being exclusive to the retailer, and prevent customers from bypassing the retailer to purchase directly from the supplier. Additionally, blind shipping can also simplify the shipping process and reduce the costs associated with shipping and handling.
Blind shipping is a tactic that is often utilized to provide distribution companies with the assistance and knowledge they require with the complexities of the shipping industry. You eliminate the middleman by shipping orders directly from the warehouse.
Many eCommerce merchants have used blind shipping as a popular alternative to their existing delivery systems. If implemented appropriately, it can also help you increase your bottom line.
The Key Elements of a Successful Blind Shipping
Here are several key elements involved in a successful blind shipping process:
- Confidentiality: The main element of blind shipping is maintaining confidentiality between the seller, the manufacturer/supplier, and the customer. The seller wants to keep the identity of the manufacturer/supplier a secret to protect the brand image.
- Reliable Suppliers: To ensure a smooth blind shipping process, it is essential to work with reliable suppliers who have a track record of delivering high-quality products and prompt shipping times.
- Accurate Order Fulfillment: The manufacturer or supplier must accurately fulfill the order and ship it to the customer using the shipping information provided by the seller.
- Branding and Packaging: The manufacturer or supplier should be able to package the product in a way that aligns with the seller’s brand and messaging, even though the customer will not know the manufacturer/supplier’s identity.
- Communication and Coordination: Engaging communication and coordination between the seller, the manufacturer or supplier, and the customer is critical to ensuring that orders are fulfilled correctly and on time.
- Returns and Refunds: The blind shipping arrangement should have clear policies and procedures in place for returns and refunds, which can be more complicated when the customer does not know the manufacturer/supplier’s identity.
Here are some of the benefits of blind shipping for you
- A. Security to your business
Blind shipping prevents the formation of a direct connection between the producer and the customer by keeping your customers’ and suppliers’ names, locations, and contact information confidential.
Blind or double-blind shipping is an ethical method of delivering products via maritime or air cargo service that gives customers and suppliers a sense of security when battling identity and product theft and safeguarding your company’s assets.
- B. Keeps you out of the shipping process
Blind shipping is a great choice for people who prefer a hands-off approach to business. There is no requirement for businesses to maintain large stockpiles of their products. The merchants, who are kept anonymous, delegate the shipping to the suppliers.
- C. Offer better quality control than drop shipping
Blind shopping and double-blind shipping keep your distributors anonymous from your consumers. It prevents customers from buying your products at cheaper rates from one of your suppliers due to anonymity.
The future of blind shipping looks promising, with a growing demand for more secure and confidential shipping solutions, driven by the increasing popularity of e-commerce and online shopping and the growing focus on privacy and security in certain product segments.
Global shipping companies like NimbusPost are dedicated to offering comprehensive dropshipping services to various Indian and international retailers at economical rates. Their multimodal shipping solutions like maritime and air cargo services are highly economical and efficient for your e-commerce business to scale high across the globe.