Purchasing · Odoo glossary

Dropshipping

Understand dropshipping, its supplier-to-customer fulfilment flow, and how Odoo connects sales orders, supplier purchases and direct deliveries.

Definition

In general ERP practice

Dropshipping is a fulfilment arrangement in which a seller accepts a customer order and a supplier ships the goods directly to that customer. The goods do not pass through the seller’s own warehouse for that delivery.

The seller still needs to coordinate the commercial order, supplier purchase and delivery evidence. Direct shipment changes the physical route; it does not remove the need to track whether the customer received the correct goods.

In Odoo

Odoo supports a Dropship route for products. The product needs an appropriate vendor configuration and must be available for selling and purchasing. A sales order for a dropshipped product generates a related request for quotation.

Confirming the supplier request creates a purchase order and a linked dropship transfer. The transfer records movement from the supplier to the customer rather than receipt into the company’s stock location. The associated sales and purchase records let users follow the direct-delivery process.

The direct-delivery flow

  1. Customer order

    The seller confirms the requested product and delivery address.

  2. Supplier purchase

    The seller arranges supply with the supplier.

  3. Direct delivery

    The supplier sends the goods to the customer; the transfer must be recorded.

Dropshipping versus replenishing stock

Buying products into your warehouse replenishes your own stock position. A dropship order fulfils the customer through a direct supplier delivery. Review the route and destination address so that the intended physical flow is reflected in the system.

Official Odoo documentation

The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.