Configuring Dropshipping in Odoo - Vendor Ships Directly to Customer

Dropshipping in Odoo#

Dropshipping lets you sell products you don't physically stock - when a customer orders, the purchase order goes to your vendor and they ship directly to the customer. Odoo automates the link between the sale order and the purchase order.

Prerequisites#

Inventory → Configuration → Settings → enable Dropshipping.

Setting Up a Product for Dropshipping#

Product → Inventory tab → Routes: enable Dropship.

Product → Purchase tab → Vendors: add the dropshipping vendor with:

• Vendor: DropShip Supplier Co.
• Price: $80 (your cost)
• Lead Time: 5 days

Your sale price: $120 (your margin: $40).

The Dropshipping Flow#

1. Customer places an order: Sale Order confirmed → Odoo detects the Dropship route
2. Automatic PO creation: a Purchase Order is auto-created to DropShip Supplier Co.

- Product: same as the sale order

- Delivery Address: customer's shipping address (not your warehouse)

1. Vendor acknowledges the PO (update expected date, confirm)
2. Vendor ships to the customer → marks the shipment in Odoo or emails tracking info
3. Validate the receipt: in Odoo, validate the dropship receipt (marks delivery as done - no physical receipt at your warehouse)
4. Invoice the customer: the sale order generates a customer invoice for $120
5. Receive the vendor bill: vendor bills you $80 → post and pay

Cost Visibility#

Your gross margin per order:

• Customer invoice: $120
• Vendor bill: $80
• Gross margin: $40 (33%)

Track by: Accounting → Reporting → General Ledger → customer revenue vs. dropship cost.

Tracking Vendor Shipments#

Ask your vendor to provide tracking numbers:

• Record on the dropship PO receipt: Tracking Number field
• Email the tracking number to the customer automatically using an automated action triggered on receipt validation

Partial Dropshipping#

If some products are from your stock and others are dropshipped:

• Product A: stock route (ship from warehouse)
• Product B: dropship route (vendor ships directly)

Odoo creates two deliveries from the same sale order:

• Delivery 1: from your warehouse (Product A)
• Dropship receipt: for Product B (triggers PO to vendor)