Drop Shipping Agreement

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bizzlibrary template file type image
.docx (0.02 MB)

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.

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The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained this site constitutes a solicitation, recommendation, endorsement, or offer by Bizzlibrary or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.


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Taisha Mckenzie(9/15/2020) - USA

Thanks for providing this example

Jovita Young(9/15/2020) - USA

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Leona Marquez(9/15/2020) - USA

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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.

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