Blind shipping facts you should know
If you are in the trading business maybe you heard about blind shipping but you are not sure what it really means. Luckily, you have found this article that will explain all about dropshipping, blind shipping and double-blind shipping. You will learn how to utilize blind shipping whether you are a seller or a manufacturer. Also, you will learn about what is the role of sea freight forwards in all this. And how you can use this to improve your business. Here are the blind shipping facts you should know if you want to trade successfully.
Complications with dropshipping
Trading looks like a simple thing. However, in today’s world, it is becoming more and more complicated. There are many different ways for trade to be conducted. In recent years, dropshipping has become very popular. It is when a company is fulfilling the order for the product that they are not producing nor keeping in stock. The customer will order the product from a seller that will then order the product from the vendor who will then ship it.
However, the problem with this kind of shipping is when the customer gets the product. The vendor’s information will be available and nothing is stopping him to order the product directly from the source. So, what can a seller do to avoid these kinds of obstacles? The answer is in blind shipping.
Blind shipping facts you should know
If there is a blind shipping agreement between the seller and the vendor, the seller will have the right to remove the vendor’s information from the shipping label and all documents that are following the shipment. Also, the seller will replace all this information with its own. That way the identity of the manufacturer is hidden and the customer knows only about the seller.
This is one of the effective ways for the seller to keep its customers. And to prevent them from going directly to the manufacturer. However, while it can prevent the buyer to order directly from the vendor, it doesn’t stop the vendor to address directly to the customer if its information is available in the order.
Double-blind shipping facts you should know
The way to prevent the customer to contact the vendor and vice versa is double-blind shipping. In this case, the seller will organize transportation. Either by hiring a shipping carrier, or, in most cases, the seller will hire sea freight forwarders to organize it all.
The truck will pick up the goods at the manufacturer’s warehouse and it will transport it to the buyer. This will prevent the vendor from knowing where the goods are headed, and the seller from seeing the vendor’s vehicle. Even though this can be pretty confusing, complicated and expensive it is the best way for the seller to make sure that the buyer and manufacturer never meet. And to keep the business running.
Blind shipping facts from the seller’s viewpoint
There are many different views concerning whether blind shipping is good or not. Of course, it depends on which side you are looking at this. The benefits of blind shipping are clear when it comes to the seller. By keeping the buyer and vendor separated the seller will keep the customers and maintain the business.
If you are a seller then it is best to go with double-blind shipping. Even though it is more complex and the expenses will be bigger, it is the only way to make sure that your customers stay with you. In this case, it is important to have a reliable carrier or experienced air freight forwarders that will organize your shipments overseas.
International blind shipping
As you can imagine, things will get more complicated with international shipping. Global forwarding requires much more paperwork, and you need to know a lot about customs laws and regulations in different countries.
In most cases, experienced freight forwarders are the only solution. Even though they cost extra, they are the only ones who have reliable and up-to-date information about always-changing shipping criteria. Do not avoid hiring them if you plan to sell overseas.
Blind shipping facts from the vendor’s viewpoint
If you are a vendor, then there are things to think about before making a blind shipping agreement. Some blind shipping facts may look like they are not in your favor. Like lower margin, for example. Whenever there is a middleman involved the profit must be divided. So it looks like blind shipping means lower profit for vendors.
Calculate the costs of raw materials, labor and overhead costs to know how much this deal is for you. On the other hand, by selling your products through a third party you will have no expenses concerning marketing and selling your product. The seller will pay for the advertisement, and handle all the sales. That also counts for something.
The manufacturers always have an option to start selling directly
On the other hand, if you have a recognizable product. The one that the customers will know even with the hidden manufacturer’s information, and the seller is doing a poor job of representing it, think about how good this type of deal is for you. If it is hurting your brand name, get out of that deal. And think about selling directly.
If you sell directly, you will have more profits. The brand’s good name will be your responsibility. Also, you will have to organize a sales network. And organize transportation, which can sometimes include heavy lift cargo. Or other difficult processes.
Both seller and manufacturer can have benefits of blind shipping
Those are the blind shipping fact you should know about if you are in the trading business. This type of deal is mostly on the seller’s advantage. But that doesn’t mean that manufacturers have a strict reason to avoid it.