Dropshipping
With dropshipping, a supplier sends the sold item directly to the customer. Shop orders, supplier orders and updates need to match.
What is dropshipping?
Dropshipping is a shipping model in which a retailer has a supplier send the sold item directly to the customer. The shop does not store and ship these items itself. An external fulfilment provider, by contrast, may also store and ship goods already belonging to the retailer’s inventory. Processing therefore needs clarity about who supplies the goods and which updates reach the shop.
A fictional desk accessories shop plans a mixed range: pen holders come from its own warehouse and wall hooks directly from a supplier. For an order containing both items, separate shipments and confirmed delivery information should remain visible. The planned flow links shop and supplier references for the hooks. If the supplier cannot provide them, that update must reach the affected shop line so the team can decide how to proceed. Merely forwarding order data should not count as confirmed shipping.
Sources
Related terms
- Order management systemAn order management system links information and processing steps for an order. Individual lines can remain in different states.
- FulfilmentFulfilment covers the operational preparation and shipping of ordered goods. Picking, packing, handover and delivery need traceable events.
- Product catalogueA product catalogue organises range information for search and selection. Catalogue entry, inventory availability and channel publication are separate data.
- Inventory reservationAn inventory reservation assigns a quantity to an order or purpose. It becomes unavailable for other operations even though it has not been shipped.
- Inventory managementInventory management brings quantities, locations and states together. Physically present goods are not automatically available for further sales.
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