Odoo Stock Dropshipping - Direct Delivery
Zero-inventory business model with direct delivery from suppliers
The Stock Dropshipping module allows businesses to sell products without holding inventory. When customers place orders, the system automatically creates purchase orders sent to suppliers, and suppliers deliver directly to customer addresses.
With the dropshipping model, businesses can expand their product catalog unlimited, minimize working capital, save storage costs and focus on marketing and sales.
Dropshipping Terminology
Direct Delivery Terms
| Fields/Button | Description |
|---|---|
| Dropshipping / Dropshipping | Selling model without inventory |
| Dropshipper / Dropshipper | Person selling via dropship |
| Supplier / Supplier | Vendor delivering directly |
| Direct Delivery / Direct Delivery | Deliver directly to customer |
| Customer Address / Customer Address | Customer delivery address |
| Purchase Order / Purchase Order | Order sent to supplier |
| Sales Order / Sales Order | Order from customer |
| Dropship Route / Dropship Route | Dropship delivery rule |
| Margin / Margin | Difference between selling and buying price |
| Fulfillment / Fulfillment | Order fulfillment process |
Dropshipping Model
Model Comparison
| Traditional Retail / Criteria | Dropshipping |
|---|---|
| Need to buy and stock / Inventory | No inventory needed |
| High (buy upfront) / Capital Investment | Low (buy when ordered) |
| Need warehouse / Storage Cost | No warehouse needed |
| High (dead stock) / Inventory Risk | Low (no stock) |
| Fast (in stock) / Delivery Time | Depends on supplier |
| High / Quality Control | Depends on supplier |
Dropshipping Process
Automated workflow from order to delivery:
Steps
1. Customer places order on website/store
2. Create Sales Order with dropship products
3. Confirm order - system auto-creates Purchase Order
4. Purchase Order sent automatically to supplier
5. Supplier confirms and delivers directly to customer
6. Update delivery status in system
7. Receive vendor bill and issue customer invoice
8. Record revenue and expenses (no inventory)
Configure Dropship Route
Set up dropshipping rules for products:
Steps
1. Enable Dropshipping in Inventory settings
2. Create or select Dropship Route in Routes
3. Configure product: select "Dropship" in Routes
4. Set default supplier for product
5. Configure supplier delivery lead time
6. System ready to process dropship orders automatically
Key Features
Key points
• Auto-create Purchase Order from Sales Order
• Direct delivery from supplier to customer
• No inventory and warehouse management needed
• Support multiple suppliers for same product
• Track delivery status from supplier
• Automatic margin calculation (selling - buying price)
• Accounting integration for revenue recording
• Dropship supplier performance reports
Supplier Management
Supplier Selection Criteria
| Criteria | Description |
|---|---|
| Reliability | On-time delivery reliability |
| Product Quality | Consistent product quality |
| Delivery Time | Fast delivery time |
| Pricing | Competitive pricing, good margin |
| Communication | Good communication and support |
| Return Policy | Flexible return policy |
Integration with Other Modules
Dropshipping integrates with modules:
Key points
• Sales: Auto-create PO from SO for dropship products
• Purchase: Manage purchase orders to suppliers
• Accounting: Record revenue and expenses without inventory
• Inventory: Track orders without inventory
• Website: Sell dropship products on e-commerce
Real-world Scenario
Example of dropshipping business:
Steps
1. Online shop sells electronics without inventory
2. Customer orders laptop for $1,000 on website
3. System auto-creates PO to supplier for $900
4. Supplier delivers directly to customer address
5. Shop receives $900 vendor bill from supplier
6. Shop issues $1,000 invoice to customer
7. Profit: $100 (10% margin) without inventory capital
8. Can expand to thousands of products without warehouse
Best Practices
Steps
1. Choose reliable suppliers with on-time delivery
2. Clear agreement on delivery time and quality
3. Check product samples before selling
4. Update supplier inventory regularly
5. Establish clear complaint handling process
6. Track KPIs: delivery time, error rate, margin
7. Diversify suppliers to reduce risk
8. Be transparent with customers about delivery time
System Requirements
To use the Stock Dropshipping module:
Steps
1. Install stock_dropshipping module
2. Enable Dropshipping in Inventory settings
3. Configure Dropship Route
4. Set up suppliers and dropship products
5. Configure integration with Sales and Purchase
6. Train staff on dropshipping process