DROP-SHIP

Drop-shipping. See official source.

Definition

Drop-shipping — distribution model in which the seller forwards the order to a third-party supplier who ships directly to the end customer. Special case of direct delivery.

Origin

Model popularised by marketplaces (Amazon FBA, eBay) in the 2000s. Documented in GS1 retail and EDIFACT/X12 retail subset guides.

Use

For a drop-ship, the seller's ORDERS to the supplier carries NAD DP (Delivery Party) = end customer and NAD BY (Buyer) = seller. The supplier bills the seller, who bills the customer.

Related

• DIRECT DELIVERY — see entry.
• DESADV — see entry.
• VMI VENDOR INVENTORY — see entry.