Every businessman is always looking for ways to maximize profits; cutting operational costs is one way to do this. For example, if your business constantly makes deliveries to customers, you might consider blind shipping.
Blind delivery is an excellent way for sellers to reduce hauling costs while maintaining high-quality standards. But there's more to blind moving than just cutting costs. It might just give your business an edge.
In this article, we'll cover everything you need to know about blind shipping, including what it is, why you should use it, and what to look for to maximize business returns with low risks.
What Is Blind Shipping?
Blind shipping allows you to sell items without revealing the name of the manufacturer or seller or the shipping address. E-commerce businesses often use this method because it makes it easier for them to sell anonymously; customers won't know where the item originates.
Is Blind Shipping the Same as Drop-Shipping?
Blind hauling is a type of drop-hauling in which products are shipped directly to the consumer without the consumer knowing who the actual seller is.
Drop shippers do not have a minimum quantity requirement, which means they can ship products even when they are only for one item. However, this would be too costly for blind shipments as there is a minimum handling charge for a bill of lading.
Additionally, drop-moving is a delivery service used by companies that don't keep their inventory; suppliers ship directly to their customers, skipping the need for distributors or retailers.
Why You Should Use Blind Shipping
Blind shipments are ideal if you're looking to hide your suppliers' identities and if you don't mind sending your products to someone anonymously.
Alternatively, a double-blind shipment is when an original invoice or packing list is not attached. Instead, you receive one containing a unique tracking number. When you receive the package, you open it, inspect the contents, and then sign a delivery receipt when everything appears in order.
Blind shipping is generally carried out for business purposes. However, not all businesses are suited to blind hauling. It would be best if you had it mainly when sensitive information is involved in your industry.
1. Protect your supply chain
Blind moving helps create an efficient supply chain by eliminating the need for a distributor or retailer, who functions as a middleman between the seller and the buyer.
With blind moving, you can ship goods directly to individual customers, avoiding the hassle of losing customers buying from suppliers directly.
2. Stay ahead of the competition
Blind shipping helps you maintain a competitive advantage.
As a blind shipper, when you send a product to someone who doesn't know where it's from, there are fewer chances that competitors will find out about your supplier. As a result, you'll be able to be competitive over others who deliver packages without blinds hauling.
You can protect your business by keeping your supplier's information secret through blind shipping.
For instance, if you have a good relationship with your suppliers and they give great deals on their products or services, your competition might find out who your suppliers are and try to approach them.
3. Run your business on autopilot
Blind shipping allows you to run your online store without worrying about inventory management. You don't need to keep any stock on your premises at all, as your suppliers take care of sending your orders for you while remaining anonymous.
By not keeping stock, you save on storage costs and won't need to write off any damaged or obsolete goods as expenses, making blind hauling cost-efficient to send goods.
Moreover, you can delegate the moving process to third-party logistics providers rather than managing your own distribution fleet. This allows you to utilize the services of those with expertise in controlling multiple shipments and delivering on time.
How to Do Blind Shipping
When customers opt to have their goods sent through blind delivery, they are informed only of the online store's general information and nothing about the supplier.
For instance, let's say a customer orders a product online from a manufacturer in the United States and wants it shipped to Singapore. However, this manufacturer has partnered with a distributor in Australia and a retailer in Malaysia.
The distributor makes a profit by buying from the manufacturer and selling to the retailer. However, the retailer can decide to buy directly from the manufacturer if they determine that the price is lower than the distributor.
Therefore, to protect themselves and maintain their profits, the distributor would sell to the retailer using blind delivery, concealing any information about the manufacturer.
Blind shipping allows the manufacturer to replace their company name on the bill of lading, which is attached to the product shipped with the customer's name.
Are There Issues with Blind Shipping?
Blind shipments are more complex than regular shipments because carriers don't always know what they are transporting. They might be carrying something utterly different from what the manifest says, which could lead to delays, damage, or even loss of goods.
Therefore, you should always check if the carrier has a bill of lading attached to its shipment. If not, you'll need to ask the airline to add one.
This is important because you can use a bill of lading to track your shipment. Moreover, a bill of lading can prove any discrepancies, such as when a different item is shipped instead of what is written on the document.
The carrier might try to charge you extra fees for the delay or damages, but you can use the bill of lading to prevent this.
Another issue to look out for is product quality. As the goods will be shipped directly from the manufacturer, sellers can lose control over the quality and consistency of the products sent to customers.
If the quality isn't consistent, it could damage your customer relationship, leading to a higher number of returned orders.
Customers may try to have the faulty goods returned, which will lower your sales and increase your costs. Now, you'd have to deal with the low-quality goods. Then, you'd have to determine whether to try to resell them or dispose of them completely.
Conclusion
Blind shipping can help you realize your business's full potential. It cuts costs and is useful for sellers who want to manage their supply chain better by concealing the identities of their suppliers.
Blind hauling may also be beneficial for sellers who want to maintain a competitive advantage over other sellers while adopting a more hands-free approach to their businesses.
Here at A1 Auto Transport, we fully understand the benefits and risks of blind moving and how you can utilize it to maximize your business.
Contact us today so you can get started!