Parties
Identify full legal names, business types, and contact information for merchant and supplier.
A Sales Dropship Agreement formalizes risk allocation for inventory, shipping, and customer claims, helps meet tax and regulatory obligations, and documents performance expectations so parties can measure and enforce service levels.
Parties should involve procurement, legal, and finance early to align operational workflows, tax treatment, and liability protections.
Identify full legal names, business types, and contact information for merchant and supplier.
Specify order submission method, acknowledgement timelines, cancellation windows, and backorder procedures.
Define who pays freight, when title and risk transfer, carrier selection, and international shipping responsibilities.
Set wholesale prices, invoicing cycles, payment terms, chargebacks, and handling of taxes.
Document return authorization process, RMA instructions, restocking fees, warranty obligations, and customer reimbursements.
Establish limits on liability, insurance requirements, recalls, and indemnification for third-party claims.
| Field | Configuration |
|---|---|
| Document upload | PDF or DOCX; preserve pagination |
| Signature placement | Add signature, date, and initial fields |
| Signer order | Define sequential or parallel signing |
| Authentication | Email link, SMS code, or advanced auth |
Ensure the chosen provider supports audit trails, long-term storage, and any industry-specific compliance such as HIPAA or 21 CFR Part 11.
Enter as MM/DD/YYYY; governs obligations
Supplier confirms within 24–72 hours
Ship within agreed days per line item
Commonly 30 days from delivery
Retention counted from effective date
Save final executed copies as PDF/A for archival and as DOCX when edits and template reuse are required.
Store the audit trail, signer IP, timestamps, and any authentication records alongside the signed document for evidentiary support.
Attach purchase orders, product specs, shipping SLAs, certificates of insurance, and any applicable permits or licenses.
Label executed copies with version, effective date, and signatory names for quick retrieval during disputes or audits.
Final terms agreed and draft moved to signing phase
All parties sign and the effective date is recorded
Supplier ships goods per SLA and provides tracking
Merchant processes refunds or returns within agreed period
| Criteria | Sales Dropship Agreement | Reseller Agreement |
|---|---|---|
| Inventory responsibility | supplier holds inventory | reseller holds inventory |
| Customer relationship | merchant owns customer | reseller owns customer |
| Pricing control | merchant sets retail price | reseller sets resale price |
| Shipping obligation | supplier ships direct | reseller ships direct |
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |