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Short answer: in a medical supply drop-ship arrangement, the fees and terms that matter are the ones written into the supplier agreement and the order terms: handling and shipping charges, who pays return freight, how delays and cancellations are handled, and whose name appears on the product label. A contract can allocate money between seller and supplier, but it cannot move the seller’s legal duties to the supplier. This guide is general information about reading those terms; it is not legal advice or medical advice.
Definition and scope
In drop shipping, one business (the seller) takes the customer’s order and a second business (the supplier or fulfilment house) ships the goods directly to the customer. The seller never handles the stock. “Fees and terms” here means everything a seller should expect to see in the supplier’s agreement or order terms before relying on it. This page covers medical and laboratory supplies. It gives no prices and no typical fee amounts, because no official source sets standard drop-ship fees. For what to verify about a program before joining, see the medical supply dropship program guide; for the regulatory roles of FDA and FTC, see drop shipping medical supplies.
How fees and terms work in a drop-ship order
Two sets of terms sit side by side. The first is the contract between the seller and the supplier: what the supplier charges, how quickly it ships, and what happens when goods are returned. The second is the promise the seller makes to the customer at the point of order: the shipping time and the cancellation and refund rights. The FTC’s Mail, Internet, or Telephone Order Merchandise Rule (16 CFR Part 435) governs the second set for orders placed by mail, via the Internet, or by telephone. The seller’s promise to the customer is only as reliable as the supplier terms behind it, which is why the two need to be read together.
Fee line items to ask about
The table below is a question list, not a price list. Each row is something to ask the supplier to state in writing. The rows list kinds of charges and clauses that supplier terms can address; the page does not claim that any given supplier charges any of them.
| Line item or clause | Question to get answered in writing |
|---|---|
| Handling or per-order fee | Is there a fee on each order, and is it per order, per line or per package? |
| Shipping charge | Who pays outbound freight, and how is the charge calculated? |
| Stated ship time | What ship time does the supplier commit to, and what happens when it is missed? |
| Cancellation | Can an order be cancelled before it ships, and is any fee kept? |
| Returns and restocking | Is a restocking fee applied, and who pays return freight? See vendor return and restocking policies. |
| Damaged or lost shipments | Who bears the loss in transit, and how is a claim made? |
| Payment and dispute charges | Are payment-method fees or chargeback charges passed on to the seller? |
| Account terms | Is there a minimum order, minimum volume or account fee? |
| Label of record | Which business name appears on the label and packing documents, and with what wording? (See below.) |
Terms the law sets regardless of the contract
Shipping time, delay and cancellation
Under 16 CFR 435.2(a)(1), a seller must ship within the time clearly and conspicuously stated in the solicitation; if none is stated, the rule sets thirty days after receipt of a properly completed order. Under 435.2(b), when the seller cannot meet the time, it must offer the buyer an option either to consent to a delay in shipping or to cancel the order and receive a prompt refund. Section 435.2(c) lists circumstances in which the seller must treat the order as cancelled and make a prompt refund. (eCFR, checked 2026-11-01.)
The FTC’s business guide to the rule adds that the seller must seek the customer’s consent to a delay, and that a refund for a payment made by cash, check or non-seller credit must be made within seven working days after the order is cancelled. (FTC business guide, checked 2026-11-01.)
Who is responsible when a drop shipper ships late
The FTC guide answers the drop-shipper question directly: the seller is liable, “This is because the person soliciting the order, not the agent fulfilling it, is the seller under the Rule.” The guide also says staff considers whether a merchant made reasonable efforts to prevent violations, for example by contracting with the fulfilment house to comply. In practice, a supplier clause that disclaims delivery times does not move the delay-notice and refund duty off the seller; the clause that helps is one that obliges the supplier to ship on time and to report problems early enough for the seller to notify the customer.
Label wording for devices
For a medical device in package form, 21 CFR 801.1(a) requires the label to specify conspicuously the name and place of business of the manufacturer, packer or distributor. Under 801.1(c), where the device was not manufactured by the person named, that name must be qualified by a phrase that reveals the connection, such as “Manufactured for ___” or “Distributed by ___”, or other wording that expresses the facts. (eCFR, checked 2026-11-01.) Whose name goes on a drop-shipped package, and with which phrase, is therefore a point to confirm in the agreement rather than assume.
Where it matters for labs and clinics
A lab or clinic that buys through a drop-ship seller is the customer in the relationship the FTC rule describes. It is entitled to the stated ship time, and to a delay-consent or cancel-and-refund choice if the shipment is late, from the business that took its order. A seller who resells to labs or clinics should check that its supplier terms let it keep the promises it makes on its own order page. The wider supplier-selection questions are covered in dropshipping suppliers in the USA, and the differences between roles in dropshipper vs reseller vs affiliate. A related guide covers medical and laboratory supply wholesale pricing.
Common misunderstandings
- “The supplier ships it, so the supplier is liable for delay.” Under the FTC’s guide, the seller that took the order is the seller under the rule.
- “A no-liability clause in the supplier terms settles it.” It may allocate cost between the two businesses; it does not remove the seller’s duty to the customer under 16 CFR Part 435.
- “A fee is a fee.” Handling, restocking, return freight and payment fees are separate charges and are best asked about separately.
- “The label is the supplier’s business.” For devices, the labeler wording is a regulatory matter under 21 CFR 801.1, not only a branding choice.
FAQ
What fees can a medical supply drop shipper charge?
No official source publishes a list of standard drop-ship fees. The checklist above names the kinds of line items worth asking about; whether any applies depends on the supplier’s own written terms.
How long does a drop-ship seller have to ship an order?
Within the time clearly and conspicuously stated when the order was solicited, or thirty days after receipt of a properly completed order if none was stated (16 CFR 435.2(a)(1)).
What happens if a drop-shipped order is delayed?
The seller must offer the buyer the option to consent to the delay or to cancel and receive a prompt refund (16 CFR 435.2(b)).
Who is the seller when the supplier ships the goods?
According to the FTC business guide, the business that solicited the order is the seller under the rule, not the business that fulfils it.
Sources
- eCFR, 16 CFR Part 435, Mail, Internet, or Telephone Order Merchandise Rule: ecfr.gov, Part 435 (checked 2026-11-01).
- Federal Trade Commission, Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule: ftc.gov business guide (checked 2026-11-01).
- eCFR, 21 CFR 801.1, Medical devices; name and place of business of manufacturer, packer or distributor: ecfr.gov, section 801.1 (checked 2026-11-01).
