A drop shipment is an order fulfilled directly from a supplier or third party to the buyer’s customer or designated recipient. The selling business may never physically hold the goods.
How does a drop shipment work?
The seller receives the customer order, sends a purchase instruction to the supplier, and the supplier packs and ships to the designated address. Order and tracking data must return to the seller.
Who owns the customer relationship?
The commercial contract determines who invoices, provides support, handles returns and bears warranty obligations. Direct shipping does not automatically transfer those responsibilities.
What information must be controlled?
Keep the customer order, supplier order, SKU, quantity, ship-to address, packaging rules, carrier, tracking, delivery evidence and return route connected.
What are the main risks?
Risks include inventory inaccuracies, supplier branding exposure, inconsistent packaging, delayed updates, split shipments and unclear tax or importer responsibility.
Drop shipment versus blind shipment
Drop shipment describes the fulfillment path. Blind shipment describes which party identities are withheld on selected documents. A shipment can be both.
