Does Odoo automatically create purchase orders for dropship items?

Yes. When a sales order containing dropship products is confirmed, Odoo automatically generates a purchase order to the vendor. The PO includes the customer's shipping address as the delivery destination.

Can I mix dropship and warehouse items in one order?

Yes. A single sales order can contain both dropship products and stocked products. Odoo creates separate deliveries — a dropship transfer for vendor-fulfilled items and a warehouse pick for stocked items.

How do returns work with dropshipping?

Dropship returns require coordination with the vendor. Create a return in Odoo, then arrange for the customer to ship back to the vendor (or your warehouse). Process the customer refund after receiving a credit from the vendor.

Is dropshipping available in Odoo Community?

Yes. The dropship route is available in both Community and Enterprise editions. The core functionality — route configuration, automated PO creation, and order tracking — works in both versions.

Odoo Dropshipping: Route Configuration Guide (2026)

What Is Dropshipping in Odoo?

Dropshipping is a fulfillment method where you sell products without holding inventory. When a customer places an order, Odoo automatically creates a purchase order to your supplier, who ships directly to the customer. You never touch the product — the vendor handles storage, packing, and shipping.

Module Setup

Dropshipping is a route within the Inventory module. Go to Inventory → Configuration → Settings and enable Dropshipping under the Warehouse section. This creates the "Dropship" route that can be assigned to products.

Configuring Dropship Products

Product Setup

Open or create a product
Go to the Inventory tab
Under Routes, check "Dropship"
Go to the Purchase tab
Add at least one vendor with pricing

# Product configuration:
# Product: Wireless Keyboard
# Routes: ☑ Dropship
# Product Type: Storable Product (for tracking)

# Vendor information:
# Vendor: TechDistributor Inc
# Vendor Price: $25.00
# Delivery Lead Time: 5 days
# Minimum Quantity: 1

Dropship Order Flow

Step-by-Step Process

# 1. Customer places order
#    Sales Order confirmed → Delivery created (Dropship type)

# 2. Purchase order auto-created
#    PO to vendor with customer's delivery address
#    Vendor receives PO with ship-to address

# 3. Vendor ships directly to customer
#    You mark the dropship delivery as done
#    (or vendor confirms shipment)

# 4. Invoicing
#    You invoice the customer (sale price)
#    Vendor invoices you (purchase price)
#    Margin = Sale price - Purchase price

Detailed Flow

Sales Order — Customer orders a dropship product. SO is confirmed.
Procurement — Odoo generates a procurement for the dropship route
Purchase Order — A PO is created to the vendor with the customer's shipping address as the delivery address
Vendor Confirmation — Send the PO to the vendor. Vendor ships to customer.
Receive Confirmation — Mark the dropship transfer as done when the vendor confirms shipment
Customer Invoice — Invoice the customer for the sale
Vendor Bill — Receive and pay the vendor's bill

Route Configuration

Dropship Route Details

Setting	Value	Description
Source Location	Vendors	Goods come from vendor
Destination	Customers	Goods go to customer
Supply Method	Take from Stock → Buy	Triggers purchase
Trigger	On Ordered Quantities	PO created on SO confirmation

Vendor Management

Multiple Vendors

Configure multiple vendors per product for flexibility:

# Primary vendor: TechDistributor (US warehouse)
#   Price: $25.00, Lead time: 5 days

# Backup vendor: GlobalSupply (EU warehouse)
#   Price: $27.00, Lead time: 8 days

# Odoo selects the vendor based on:
# - Vendor priority (sequence)
# - Minimum quantity met
# - Lead time requirements

Vendor Agreements

Negotiate dropship-specific pricing with vendors
Set up blanket orders for volume commitments
Define shipping responsibilities and cost allocation
Agree on return handling and damage policies

Combining Dropship and Stock

A single sales order can contain both dropship and stocked products:

# Sales Order SO-2026-001:
# Line 1: Wireless Keyboard (Dropship) → Creates PO to vendor
# Line 2: Mouse Pad (Stock) → Picks from warehouse
# Line 3: USB Cable (Stock) → Picks from warehouse

# Customer receives two shipments:
# 1. Keyboard direct from vendor
# 2. Mouse pad + USB cable from your warehouse

Tracking and Visibility

Each dropship order creates a transfer record in Inventory
Track vendor shipping status through PO tracking numbers
Customer sees order status in their portal
Chatter logs all communications and status changes

Returns and Refunds

Dropship returns require coordination with the vendor:

Customer requests a return through the portal or contacting you
Create a return in Odoo (reverse transfer)
Coordinate with vendor: customer ships back to vendor, or to you
Process refund to customer after receiving vendor credit

Pricing and Margins

# Margin calculation:
# Sale price to customer: $45.00
# Purchase price from vendor: $25.00
# Shipping cost (if you pay): $5.00
# Margin: $45 - $25 - $5 = $15.00 (33.3%)

# Advantages:
# - No inventory holding cost
# - No warehouse space needed
# - No picking/packing labor
# - Lower capital requirements

Reporting

Dropship Orders — Filter deliveries by dropship type
Vendor Performance — Delivery times, accuracy for dropship orders
Margin Analysis — Profit per dropship product
Order Fulfillment — On-time delivery rate for dropship orders

Best Practices

Vet vendors carefully — Their shipping quality is your brand reputation
Set realistic lead times — Communicate accurate delivery dates to customers
Monitor vendor stock — Avoid selling products the vendor cannot supply
Define return policies — Clear agreements with vendors on returns
Track margins — Ensure dropship products remain profitable after shipping costs

DeployMonkey + Dropshipping

DeployMonkey's AI agent configures dropship routes, vendor relationships, and automated PO generation for your dropshipping business model.