Dropshipping is a fulfillment strategy in which suppliers directly ship the products to the customers from their warehouse/location, without the need for the seller to physically store/hold the stock.
In Primaseller, dropshipping is enabled by:
Enabling it on a Supplier and Configuring a virtual facility for that supplier
Scheduled creation of a special order called Dropship Order which compiles all fulfillments meant for a supplier for a certain period (day/ week/ month). This can be emailed to the supplier.
Creation of a Purchase Order along with the Dropship Order.
Main Menu -> Purchasing -> Suppliers -> Create or edit a supplier
In the Dropship section (towards the bottom of the page), enable dropshipping by switching on the “Is Dropshipper” option. On enabling it, you will see the following options:
- Frequency : Select the frequency (daily/weekly/monthly), hours, and minutes at which all sale orders meant for this supplier will be compiled and sent as a single Dropship Order
- Default Dropship order status: Set this to “Open” if you want to manually review Dropship orders for this supplier, to be able to modify or add special instructions before sending it. Otherwise, it will be sent (emailed) automatically.
- Create PO automatically per drop-ship order: Select this option to automatically create and send a purchase order against a Dropship Order when you send it. If you disable this, you can manually create a purchase it later at any point in time.
Enabling dropshipping on the supplier
Once enabled, a new facility will be created using the Supplier Name and Address. This is a facility of type “Dropship”
The Dropship Facility
What you can do:
– You can modify inventory in a dropship facility, like in any other facility
– You can use this facility on your channels to set it as a source for your inventory as well as in assignment rules for orders.
What you cannot do:
– You cannot create a manual PO for a dropship facility – only the POs created for a Dropship Order will be allowed to be received.
– You cannot create a transfer order to or from a dropship facility.
Setting up Dropshipping Assignment Rules
You will now need to set up assignment rules to route orders to a dropship facility.
Identify the channel for which you want to route orders to the suppliers configured above
In Assignment rules, add a rule using 'Assign based on Inventory – Split Order' and then select the dropship facilities of each supplier.
Save the rule.
Assigning orders to dropship facilities
The assumption while setting up the above rules is that you will add/update inventory frequently in each dropship facility based on the stock that the supplier says they have in their location to fulfill your orders (you can use the CSV Upload option for bulk updates to inventory).
If you do not add stock to the dropship locations, the order (Fulfillment) will not get assigned to the dropship location and move to the next possible assignment rule.
If you have multiple dropship suppliers, you can add all the facilities to the same rule. The sequence wouldn’t matter and the order will be split and assigned only if the facility has stock.
Configuring the Dropship Order Template
This template decides what the Dropship Order PDF file would look like when emailed to the Supplier. Here’s how it is configured:
Main Menu -> Settings
Click on the Templates and select Dropship Order Template.
Select Add template.
Fill up the details and provide a template name
Under Design, provide the details of the header, logo, and footer.
Under the Customer Tab, click on 'Show customer phone number and email id', as per your requirement.
Click on Save.
Running a Dropship Operation
This involves the diligent followup of two key tasks -
Ensuring that your dropship locations always have stock information from your supplies.
Ensuring you always update the dropship orders with relevant information.
Setting up Supplier Inventory
The supplier inventory can be updated for each SKU individually or bulk imported in Primaseller.
Follow the below steps to set up dropshiping supplier inventory:
Main Menu ->Inventory -> Stock level
Select Dropship facility (This will be automatically created when you enable dropship while creating a new supplier)
Select either Edit stock on hand
For bulk uploading, click on Inventory Actions.
For more details about bulk action import inventory, click here.
Dropship Order Overview
Dropship orders combine fulfillments for a given supplier from a dropship location. They are created automatically based on the frequency set on the Supplier -> Dropship configuration section.
A dropship order status can be -
Open: You can modify an order in this stage by removing fulfillments.
Sent: This order has been sent to the supplier and you are waiting for updates from the supplier on processing status.
Processing Dropship Orders
As per the frequency set and the dropship order status for a Supplier, an automatic dropship order will be created collating all the sale orders received.
The steps to process a dropship order are -
If the default Dropship Order Status is open (on supplier configuration) :
Main menu -> Purchasing -> Dropshipping
Select an open order.
Add instructions if needed.
Click on Map to assign the items to your supplier
Click on Send – This will send an email to the supplier and automatically create a PO (if configured for a supplier).
Mapping items to the supplier
The Dropship order will proceed to the Sent Stage from the Open Stage only when all items are mapped.
Mapping items ensures that the item is part of the supplier catalog so that purchase orders can be created against this dropship order.
The order is sent to the supplier and their revert is awaited. Once received, you need to manually change the status for each fulfillment to update the tracking information.
Select Actions next to each fulfillment and click on Ship.
Provide the shipper and tracking information and click on Ship.
A dropship order will automatically be marked as 'Closed' once all fulfillments in it are either shipped or canceled.
Dropship Purchase order
For every Dropship Order, a purchase order will automatically be created (if configured for a supplier – otherwise one has to be created manually).
Follow the below steps to send and approve (if a supplier needs approval) a dropship purchase order:
Main menu -> Purchasing.
Select the Purchase order and click on the order number.
Click on Approve & send PO.
1. The Purchase Order cannot be closed till the Dropship Order is closed.
2. The Dropship PO cannot be received manually – it will automatically capture receipts based on items shipped on the Dropship Order – once the Dropship Order is closed.
Dropship order cancellation
A fulfillment in dropship order can be canceled before it is shipped.
Main menu -> Purchasing -> Dropshipping
Select an order.
Click on Actions next to a given fulfillment and then on Cancel.
Impact on QuickBooks Online (QBO)
Dropshiping inventory is not synced with QBO.
Purchase orders and purchase receipts will be synced.
QBO entries are currently not handled if the order is returned to the supplier facility.
Transfer order: Transfer orders are not available for dropship facilities.