Running your own retail business is a rewarding endeavor, but it requires dedication and hard work to manage all aspects of your operation, from creating your product to marketing to fulfilling orders. If your business grows, it can be challenging to keep up with the increasing demands of your customers without expanding your premises or warehousing. Blind drop shipping offers a solution that can reduce your overhead costs and alleviate some of the stress of order fulfillment and shipping.
What Is Blind Drop Shipping?
Blind drop shipping is a method of fulfilling a customer order from a third party eCommerce business by sending the goods directly from the wholesale supplier. This effectively circumvents the conventional supply chain, but it can be a more cost-effective way to manage your business without sacrificing the quality of your product or damaging your branding.
Order Your Custom Cardboard Boxes Today!One of the interesting facts on drop shipping is that it derives from the Just-In-Time (JIT) system of inventory management introduced by Toyota in the 1950s, which aimed to eliminate wasteful and non-productive manufacturing practices.
How Blind Drop Shipping Works
When a customer places an order on your website, you pay the wholesaler directly, who then sends the goods to the customer from their warehouse. To prevent the customer from realizing that the packaging has come from a wholesaler rather than a retailer, a special type of drop ship packaging label is used.
The label is the key to a successful drop shipping operation. It will not feature any identifying information from the manufacturer or wholesaler, and it provides only the customer and retailer address and the customer purchase price. You can also request that the supplier does not add any marketing materials or coupons to the packaging to further disguise the source of the products.
Check Out Our Assortment of Eco-Friendly Packaging OptionsUnfortunately, this means you can’t customize your packaging to suit the items or represent your brand. Custom cardboard boxes and labels can help your business stand out from your competitors.
What Are the Advantages of Blind Drop Shipping?
Blind drop shipping offers several advantages for retail businesses. Primarily, it is used to protect your interests and rights as a business owner. It will prevent your suppliers from using the shipping information that you provide to directly contact your customers, potentially stealing future orders.
It also offers a low-cost way to enter the retail business, making it ideal for companies testing out new products or an alternative market. Rather than manufacturing hundreds of items that could potentially not sell, drop shipping allows you to purchase inventory according to demand.
While there is no discernable difference in terms of safety and quality between ordering from a retailer that stores their inventory in-house or off-site, customers are more likely to trust a store that carries their own inventory.
To avoid the added cost of warehousing and distribution, which can be cost-prohibitive for many small businesses, blind drop shipping allows your supplier to send your product to your customer on your behalf without your customers knowing the difference.
Customers want consistency and faster shipping times that align with their perception of your brand. However, for many small businesses, it is not always possible to maintain the speedy turnover that other larger companies offer. Blind drop shipping can provide faster transit times, as the inventory does not need to be shipped first to the retailer. This is a viable shipping method for businesses looking for perishable shipping solutions for items with a short shelf life.
The Disadvantages of Blind Drop Shipping
Blind drop shipping is not without complications and may not be suitable for all types of businesses. You have little control over the domestic and international freight shipping rates, which means you may need to charge your customers extra in shipping fees, leading to cart abandonment and reduced sales conversions.
Your wholesaler may also be supplying the same product to rival businesses, so you need to work hard to make your business stand out. This potentially means that any savings gained from drop shipping need to be redirected to marketing. Selecting a drop shipping company that uses eco-friendly packaging can be an effective way to get an edge over the competition.
But the biggest drawback to using drop shipping is a lack of control over your product. Items can be shipped damaged or missing components or be delayed due to the type of carrier your wholesaler has chosen. The customer holds you accountable for any issues arising with the product or shipping times, as they believe that you are the one storing and shipping the goods. Consistently poor drop shipping results can irreparably tarnish your reputation as a brand.
The Bottom Line
If you are starting a retail business or are looking for a creative way to improve your revenue, drop shipping offers a smart way to avoid the usual costly pitfalls of the supply chain. However, you need to consider the advantages and disadvantages and decide whether blind drop shipping is suitable for your brand and business model.
Air Sea Containers offers the best range of packaging materials, boxes, labels and containers to suit the needs of your business. Contact Air Sea Containers at (866) 596-9448 or browse our website to find out more about how custom packaging can boost your business.
