Drop Shipping Agreement

What is drop shipping?

Drop shipping is a order fulfillment method where a (web) shop does not keep the products it sells in stock. Instead, when the (web) shop sells a product it purchases the item from a third party. This third party ships the item(s) directly to the customer. The (web) ship does not store their own inventory or ship items directly. It does not even own the items.

Why do you need a drop shipping agreement?

Drop Shipping sounds like an easy way to generate income, but it has some serious legal issues you can become involved with if you are not careful and not protect your business and yourself well! Make sure you are aware of your liability and responsibilities as a Vendor/Retailer for the items the third party directly ships to your customers.

The provided drop shipping agreement template is written in favor of the (web) shop/vendor, which is highly recommended to use when you are the website that is selling items that are sold using the drop shipping fulfillment method.

What is included in this drop shipping agreement?

The following section are included in this template agreement that you can adjust to your own situation:

1. Definitions
2. Term Cancellation
3. Vendor's Role
4. Supplier's Role
5. Billing Fees and Charges
6. Sales and Tax
7. Return policy
8. Problems with shipment to address
9. Responsibilities
10. Claims
11. Right to Modify
12. Non-Payment
13. Severability
14. Confidential Information
15. Effectiveness
16. Products provided
17. Services provided
    
18. Signatures

Download this Drop Shipping agreement between drop shipper and supplier directly.