Drop Shipping Agreement

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:

Definitions
Term Cancellation
Vendor's Role
Supplier's Role
Billing Fees and Charges
Sales and Tax
Return policy
Problems with shipment to address
Responsibilities
Claims
Right to Modify
Non-Payment
Severability
Confidential Information
Effectiveness
Products provided
Services provided
Signatures

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

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Frequently Asked Questions

What Is A Dropshipping Agreement?

A dropshipping agreement is a legally binding contract between a seller and producer (or trading company) of goods. If you are a seller who wants to engage a producer to help support your business, you should get a dropshipping agreement drafted.

Last modified Friday, March 10, 2023

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