Imagine you order a product online. When it arrives, you notice it was shipped from a company you've never heard of, not from the original seller. After some confusion, you realize you now have the vendor’s information and can buy directly from them in the future, possibly at a lower price.
This is great for you as a consumer but problematic for the original seller, who has now lost future business.
This is where blind shipments come into play.
What is Blind Shipping?
Blind shipping is a method where the identity and address of the shipper or consignee (or both) are hidden from the receiver. Typically facilitated by a third party, this ensures that a manufacturer doesn’t bypass the distributor to do business directly with the customer, or vice versa.
Blind shipping is also known as blind drop shipping.
What is Double-Blind Shipping?
Double-blind shipping takes this a step further by hiding the identities of both the sender and the receiver from one another. This method ensures that the customer cannot go directly to the vendor/manufacturer, and the vendor cannot sell directly to the customer at a lower price, protecting the distributor’s profit margin.
Why Use Blind Shipments?
Blind shipments offer several benefits:
Reduced Shipping Time: Items are picked up directly from the vendor and delivered to the customer, bypassing the need for intermediate shipping.
Simplified Process: Eliminates the need to remove manufacturer labels, re-label, and re-ship products.
Cost Savings: Benefit from discounted pricing due to relationships with multiple blind shipping carriers.
Confidentiality: Keeps customers and suppliers from knowing about each other, maintaining business relationships.
Preparing Your Blind Shipments
To maintain confidentiality, blind shipments often require up to three separate Bills of Lading (BOLs):
A BOL used by the shipper at pick-up.
A BOL given to the consignee upon delivery.
A proper BOL with complete shipping and delivery information, provided to the carrier when the shipment is booked.
Each carrier may handle blind shipments differently, so it’s crucial to check their specific requirements. Some carriers may need the correct city and ZIP code on every BOL or additional paperwork to confirm the blind shipment.
Managing multiple BOLs and additional paperwork can be complex. Many companies opt to work with a third-party logistics provider (3PL) to navigate this process. Learn more about how partnering with a 3PL can benefit your business.
Additional Fees to Consider
Due to the complexity of blind shipments, carriers often charge extra fees. Make sure to account for these additional costs to ensure your freight quote is accurate. Be aware of other common shipping fees that could impact your final bill.
Avoiding Potential Pitfalls
Blind shipments are more complicated than standard freight shipments, which require only one BOL. With multiple BOLs involved, issues can arise, but careful planning can help avoid these complications.
Confirm with the carrier that they have the correct BOL for the consignee and the complete pick-up and delivery information for their records. An improper BOL might lead to incorrect delivery or reveal the shipment's origin to the consignee.
Carriers often have language in their rules tariff stating they will attempt to meet the blind shipment requirements but are not responsible for misrouted freight. They typically do not adjust routing mistakes, so it’s essential to provide clear and accurate information.
How We Can Help
Understanding the nuances of blind shipping can be confusing and time-consuming.
Revcon Logistics’ team of freight shipping experts can help you manage your business’s blind shipments and other logistics.
Contact us today to get started.
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