Drop shipping is a supply chain management technique where the retailer does not keep inventory in stock. The retailer transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.
As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the retailer.
- Set up Suppliers (necessary)
- Set up Products (necessary)
- Familiarity with Processing a Sale (necessary)
To set up dropshipping capability for a product:
Navigate to Inventory -> Products.
Select the product you wish to enable dropshipping for.
In the Dropship dropdown menu on the edit product screen, select Always Dropship or Optionally Dropship. If Always Dropship is selected, you will not be able to change this status during sale orders.
Add suppliers with + or Add more items.
Check the Dropship box next to a supplier name to enable dropshipping of that product.
To dropship a product:
Check that Always Dropship or Optionally Dropship is enabled for the product (see above).
Create a new sale as shown in Processing a Sale.
Authorise the sale order - DEAR will automatically generate corresponding purchase orders.
For Always Dropship items, Authorise the sale order.
For Optionally Dropship items, check the Dropship box before authorising the sale order.
The Pick, Pack and Ship tabs will not be available for dropshipped orders. When Sale invoices are authorised, sale transactions are exported to accounting software, and payments are received from accounting software.
The Drop Ship Purchase Orders are different from usual purchase orders. Blind Receipt and Input method are disabled. No Received and Unstock tabs are available. Once purchase orders are fulfilled COGS transactions will be created in accounting software.