What Is Blind Shipping? Definition, Benefits, and Best Practices

Online shoppers usually think their orders come straight from the brand, but the reality can be far more tangled, involving a complex—and sometimes hidden—supply chain. 

An order for a marble tray from your homeware brand might originate from a manufacturer, pass through a supplier, reach the retail business, and finally land on your customer’s doorstep. Even if you bypass the traditional distribution channel by shipping from your manufacturer directly to your customer, you may undermine your brand’s competitive advantage by revealing key supplier info.

So, how can your brand conceal the intricate logistics of order fulfillment and maintain a direct relationship with customers? Blind shipping could be the answer. 

What is blind shipping?

Blind shipping is a shipping method where the end customer doesn’t see the original supplier’s identity. This method replaces the supplier’s information with the retailer’s details across documents and labels. Your supplier ships the product directly to your customer, but blind shipping makes it appear your brand sent the package.

For example, when a customer orders a designer lamp from your ecommerce homeware brand, the lamp might be shipped directly from the supplier’s warehouse, but the shipping label would only show your brand’s information.

What is double-blind shipping? 

Double-blind shipping is a more advanced form of blind shipping. It hides both the supplier’s information from the customer and the customer’s details from the supplier. This process involves a third party (typically a freight forwarder) who manages the shipment and replaces both the sender and recipient information on shipping documents. Third-party information appears on the label instead, keeping both the shipper and the customer in the dark about each other’s identities.

Reasons to use blind shipping

• Ensure brand credibility with customers
• Preserve competitive advantage
• Safeguard supplier and customer relationships

Whether you run an ecommerce business or manage logistics at a traditional retailer, there are many reasons your business might benefit from blind shipping.

Ensure brand credibility with customers

Customers often expect to receive a unique product crafted or curated by the retailer they’ve chosen to purchase from. If a customer realizes their item comes from a supplier providing identical products to multiple retailers, it may tarnish your brand’s perceived exclusivity or value.

A blind shipment creates the illusion of a one-to-one relationship between the customer and the retailer. This relationship is particularly crucial in dropshipping scenarios. Suppose a customer orders a popular mini smoothie blender from your ecommerce health shop, and it’s shipped directly from a third-party manufacturer. If you ship blind, you’ll ensure they receive the product with your shop’s information, reinforcing brand loyalty.

Preserve competitive advantage

Traditional shipping methods could expose valuable details on your packaging, such as the supplier or manufacturer’s information. A competitor could easily place an order, contact your supplier, and use them for their own business—possibly even negotiating better terms.

Blind shipments protect your supply chain by maintaining supplier anonymity, preserving your competitive advantage, and safeguarding your profit margins.

Safeguard supplier and customer relationships 

Double-blind shipping addresses a critical issue, particularly in B2B ecommerce. Imagine you’re supplying luxury toiletries to boutique hotels. If your soap supplier gets hold of your client information, they might approach your hotel customers directly and offer lower prices by cutting you out of the deal. Access to supplier info could also tempt customers to bypass your business and go directly to the source, hoping to secure a lower price. 

A double-blind shipment ensures that neither your suppliers nor customers can access each other’s details. This strategy protects your business relationships and position in the supply chain.

How to set up a blind shipment

1. Prepare your shipping documents
2. Coordinate with your supplier
3. Coordinate with your carrier
4. Implement and monitor the process

Preparing blind shipments can add a layer of complexity to your ecommerce business, but it’s a common practice that most suppliers and shippers can help with. Here’s how to get started with blind shipping:

1. Prepare your shipping documents

To set up a typical blind shipment, create two versions of a bill of lading (BOL). A BOL is a vital shipping document detailing the origin, destination, and details of shipped goods. For blind shipping, one BOL will contain accurate information, while the other will have modified details to conceal the shipper or recipient details. 

If you’re an online retailer trying to hide your supplier from customers, your “dummy” BOL would list your company as the shipper. The “real” BOL will have the actual supplier’s information. Ensure both documents match shipment specifics, like weight and item descriptions, to avoid discrepancies and delays.

2. Coordinate with your supplier

Reach out to your supplier and explain the blind shipping process. They’ll need to understand how to handle the two BOLs and present the correct one when the carrier picks up your goods. 

3. Coordinate with your carrier

Not all carriers handle blind and double-blind shipments, so ensure that your carrier works with your preferred shipping method and has no extra requirements. 

After finding a shipping carrier that works for your business, contact them to set up the blind shipment. Arrange for the carrier to collect the shipment using the dummy BOL, switch to the real BOL during transit for accurate routing, and then revert to the dummy BOL for final delivery. Swapping the BOLs ensures that the blinded party, typically your customer, never sees the supplier’s information.

4. Implement and monitor the process

Once you’ve set up the system with your supplier and carrier, ensure they process the shipment and use the appropriate BOL at each stage. Consider implementing a quality control process, like spot-checking shipments or requesting carrier confirmation on the BOL switch. 

Internally, train your customer service team to handle shipping inquiries without revealing the blind shipping arrangement. By consistently reviewing and refining your process, you can maintain the integrity of your blind shipping system.

Blind shipping vs. dropshipping

Dropshipping is a fulfillment method where an online retailer transfers customer orders to a third-party vendor for direct shipment to the buyer. This approach allows businesses to offer products without warehousing, managing stock, or coordinating individual shipments. 

Dropshipping is a business method, while blind shipping is a shipping arrangement. Many dropshipping operations use blind shipping to mask supplier information, maintain the illusion of a direct-to-consumer sale, and safeguard supply chain relationships.