Drop Ship Agreement

Drop shipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party—usually a wholesaler or manufacturer—and has it shipped directly to the customer. As a result, the Retailer never sees or handles the product.

This Drop Ship Agreement template is designed to formalise the business relationship between a Drop Shipper and a Retailer, facilitating the supply of goods without the Retailer needing to hold inventory. The agreement outlines the terms and conditions under which the Drop Shipper will provide goods directly to the Retailer's customers, ensuring clarity and mutual understanding of each party's responsibilities and obligations. Key provisions include the process for ordering and delivering goods, warranty and liability terms, pricing and payment structures, and compliance with relevant laws and regulations. This template aims to protect both parties' interests, streamline operations, and ensure a smooth and efficient drop shipping arrangement. 

• Template includes a number of schedule that will set out key provisions in the relationship, including;
  Goods and Specification: Provides a detailed description of the goods to be supplied, including technical and functional specifications.
• Prices: Lists the prices for the goods, including any applicable terms for price adjustments. 
• Order Form: Contains the standard form to be used by the Retailer when placing orders with the Drop Shipper. 
• Marks: Details the trademarks and branding elements of the Retailer that the Drop Shipper is authorised to use. 
• Order Fulfilment: the procedures the Drop Shipper must follow to fulfill orders, from preparation to delivery.
• Returns Procedure:Describes the process for handling returns, including conditions under which goods can be returned and the steps to be followed.