Blind shipping and dropshipping are two fulfillment methods that can be used by small and medium-sized businesses (SMBs) to sell products online. Both methods have their advantages and disadvantages, so it is important to choose the right one for your business.
What is blind shipping?
Blind shipping is a type of dropshipping where the supplier removes their branding from the packaging and shipping materials. This means that the customer receives the product with the retailer’s branding, and they need to know who the supplier is.
What is dropshipping?
Dropshipping is a retail fulfillment method that allows retailers to sell products without keeping them in stock. Instead, when a customer places an order, the retailer contacts the supplier or manufacturer, who then ships the product directly to the customer. This model offers several advantages to retailers, including lower startup costs and reduced inventory risk.
Advantages of blind shipping
- Increased brand awareness: Blind shipping allows retailers to increase their brand awareness by having their branding on the packaging and shipping materials.
- Reduced competition: Blind shipping can help retailers reduce competition by preventing potential competitors from contacting their suppliers directly.
- Improved customer satisfaction: Blind shipping can improve customer satisfaction by giving customers the impression that the retailer handles the entire fulfillment process.
- Higher perceived value: Customers may perceive products sold through blind shipping to be more valuable because they think the retailer is handling the entire fulfillment process.
Disadvantages of blind shipping
- Higher costs: Blind shipping can be more expensive than traditional dropshipping because the supplier needs to remove their branding from the packaging and shipping materials.
- Less control: Retailers have less control over the fulfillment process with blind shipping, as the supplier to directly ship the product to the customer. This can lead to problems such as late shipments or incorrect orders.
- Potential for customer confusion: If there is a problem with the product or order, the customer may need clarification about who to contact. This leads to negative customer reviews and damage the retailer’s reputation.
Advantages of dropshipping
- Lower costs: Dropshipping is typically less expensive than blind shipping because the retailer does not need to pay for packaging and shipping materials.
- More control: Retailers have more control over the fulfillment process with dropshipping, as they can choose their own suppliers and shipping carriers. This can help retailers to avoid problems such as late shipments or incorrect orders.
- Less risk: There is less risk involved with dropshipping because the retailer does not need to invest in inventory. This can make dropshipping a good option for new businesses or businesses that are selling a variety of products.
Disadvantages of dropshipping
- Reduced brand awareness: Dropshipping can reduce brand awareness because the customer receives the product with the supplier’s branding. This can make it difficult for retailers to build brand loyalty.
- Increased competition: Dropshipping can increase competition because other retailers can easily sell the same products as you. This can make it difficult to stand out from the competition.
- Potential for stockouts: If the supplier runs out of stock, the retailer may be unable to fulfill customer orders. This can lead to lost sales, bad reputation, and unhappy customers.
Choosing the proper fulfillment method for your SMB
When choosing the best fulfillment method for your SMB, it’s essential to consider your specific needs and goals. Blind shipping can be an excellent option to increase brand awareness and reduce competition. However, if you are looking to keep your costs low and have more control over the fulfillment process, dropshipping is a better choice.
Here are some additional factors to consider when deciding between blind shipping and dropshipping:
- Product margins: If you have high product margins, you may be able to afford the higher costs associated with blind shipping.
- Target market: If your target market is brand-conscious, then blind shipping may be a good option. If your target market is price-conscious, then dropshipping may be a better option.
- Product availability: If you need to ensure your products are always in stock, there may be better options than dropshipping.
- Level of control: If you want to have more control over the fulfillment process, then dropshipping is the better option.
- Risk tolerance: If you have a low risk tolerance, dropshipping is the better option because you do not need to invest in inventory.
Conclusion
Both blind shipping and dropshipping can be viable fulfillment methods for SMBs. The best way to choose between the two is to weigh the pros and cons of each method and consider your specific needs and goals.
The best fulfillment method for your SMB will depend on your specific needs and goals. If you are looking to increase brand awareness and reduce competition, then blind shipping may be a good option for you. However, if you are looking to keep your costs low and have more control over the fulfillment process, dropshipping is a better option.