SUPPLIER-DIRECT SHIPMENT EXECUTION
Drop Ship
To drop ship is to send a customer order directly from a supplier or its fulfillment partner to the customer on behalf of the selling business. The seller does not handle that shipment through its own stockholding location.
DROP SHIP IN PRACTICE
- Accept the orderConfirm the seller, supplier and ship-to data.
- Execute the shipmentUse agreed labels, packing and service.
- Report the resultReturn tracking and exception information.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
One retailer order. Supplier-side dispatch.
A retailer accepts an order and routes it to a supplier. The supplier’s warehouse or 3PL picks and sends it to the customer. The retailer needs accurate dispatch information even though the parcel never passes through its own warehouse.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Drop Ship
Must a 3PL perform the shipment?
No. A supplier can ship directly or use a partner.
Does drop ship specify ownership?
Not by itself. Agree it separately.
Does the seller still need customer support?
Yes. The customer relationship and exceptions need ownership.
Source & example notes
Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
