In the complex world of today’s supply chain, vendors use various shipping methods to streamline operations and maximize profitability. Among them, blind shipping can offer your business a competitive advantage.
Despite its rather ‘shady’ name, blind shipping is a common practice that safeguards supplier confidentiality. More than convenience, it can actually be a game-changer that helps you stand out in the international market and increase profitability.
So, let’s take a closer look on what blind shipping is and how it benefits your business operations.
What Is Blind Shipping?
Blind shipping is a shipping method where the sender (consignor or supplier) keeps their identity and exact address hidden from the receiver (consignee or customer) – or vice versa. It’s a rather common and legitimate practice in global trade that helps maintain certain information private.
For example, if you are a reseller and don’t want your customer knowing who your supplier is, you’d opt for blind shipping. The goods, then, would arrive looking like they came directly from you, in your own branded packaging and from your own address.
Sometimes, you can even have a third party managing the entire process, making sure neither the sender nor the receiver knows who the other one is. This is often called a double-blind shipment.
Why Do Shippers Or Consignees Choose To Blind Ship?
As a business, there are several good reasons why you might choose to go the blind shipping route.
Protect Your Competitive Edge
Imagine you’ve spent time and effort finding a great supplier with fantastic prices. You probably don’t want your competitors swooping in and stealing them away, right?
Blind shipping helps you keep your supplier relationships confidential, which can lead to cost savings and better negotiation power for you.
In essence, by keeping your supplier’s details hidden, you’re safeguarding your business practices.
Keep Your Suppliers Happy
Oftentimes, suppliers have different pricing for different clients. They may also give you some exclusive deals they don’t want everyone to know about.
In this scenario, you would opt for blind shipments to protect your supplier identity and agreements and prevent your competitors from figuring out who your trusted partners are.
Skip Warehousing
Successful international e-commerce today is based on fast-moving supply chains. As a result, you may often find yourself selling products without actually holding on to inventory yourself – like in dropshipping.
In such trading models, blind shipping lets you mask the fact that a third party is actually shipping the products, safeguarding your future sales.
Moreover, it helps cut down on warehousing costs and optimizes your supply chain by utilizing a 3rd party’s warehousing and shipping infrastructure.
How Do I Make A Blind Shipment?
Setting up a blind shipment involves a bit more paperwork than conventional shipping. The key player here is the Bill of Lading (BOL).
In a typical blind shipment, you’ll usually need two different BOLs, while in a double-blind shipment, this goes up to three.
Here’s a general idea of how a blind shipment works:
- The ‘hidden’ shipper issues the first BOL when the goods are picked up. This is also referred to as “dummy BOL” or “blind BOL” when the identity of the real sender is concealed.
- Then, a second BOL is needed for the actual delivery to the consignee or customer. This second document, often called the “real BOL,” shows the seller’s information to protect the identity of the blind party.
- Often, a freight forwarder or a 3PL (third-party logistics provider) will handle the process. They manage a proper BOL with all the correct shipping details and provide it to the carrier when the shipment is booked.
The carrier must be well aware that they are dealing with a blind shipment so that they switch the BOLs at the right time. Choosing an experienced freight forwarder ensures that the entire process goes smoothly.
Do Blind Shipments Have Any Restrictions?
Yes, here are some things to keep in mind when it comes to blind shipments.
- Because you’re dealing with multiple Bills of Lading, you need to pay extra attention to the paperwork involved.
- Some types of goods cannot typically be blind shipped for security reasons – like HAZMAT (hazardous materials), for example.
- Carriers may have limited liability if freight or parcels get misrouted in a blind shipment. Some carriers may thus exclude certain sections of the BOL, like section 7 – where the shipper provides instructions to the carrier regarding the release of the cargo to the consignee.
- Carriers usually require payment upfront for blind shipping services, and they also charge an additional flat fee per blind shipment on top of any other charges and landed costs.
- While the intention is to keep information private, carriers can’t always guarantee the confidentiality of these blind transactions.
- In most cases, the sender’s real ZIP code and city information must match the information written on the blind bill of lading.
What Is A Double-Blind Shipment?
A double-blind shipment is a shipping method where neither the consignor nor the consignee knows each other’s identity. A third party usually manages the entire shipping operation, keeping everyone in the dark.
This method is often used when complete privacy is needed, for example, in industries like pharmaceuticals or when dealing with sensitive intellectual property.
Setting up double-blind shipping is more complex than bind shipping and usually requires specialized logistics providers.
What Is Drop Shipping?
Dropshipping is an e-commerce business model where sellers don’t keep inventory. Instead, when a customer orders a product, the seller purchases it from a third-party supplier, who then ships it directly to the customer, usually via blind shipping.
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