Dropshipping

Dropshipping 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.


Prerequisites:


Table of Contents


Enable dropshipping of a product

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Before items can be dropshipped, dropshipping capability needs to be enabled for a product from the product screen. Products can only be dropshipped if suppliers have been added to the product. 


Enable dropshipping of a product:

  1. Navigate to Inventory -> Products.
  2. Select the product you wish to enable dropshipping for.
  3. 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.


  4. Add suppliers with or Add more items. This is necessary for dropshipping to be enabled. 
  5. Check the Dropship box next to a supplier name to enable dropshipping of that product.



Dropship a product

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Once dropshipping has been enabled and suppliers added to a product, the option to dropship will be available when processing a sale. 


To dropship a product:

  1. Check that Always Dropship or Optionally Dropship is enabled for the product (see above).
  2. Create a new sale as shown in Processing a Sale.
  3. 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 the accounting software, and payments are received from the accounting software.


The Drop Ship Purchase Orders are different from usual purchase orders. Blind Receipt and Input methods are disabled. No Received and Unstock tabs are available. Once purchase orders are fulfilled, COGS transactions will be created in the accounting software.


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