How to Create Dropshipping in Odoo18

The steps below guide you through understanding and implementing the “Dropshipping” concept in Odoo 18. This workflow explains how to create a sales order for a dropshipped product, detailing how the product is directly transferred from the vendor to the customer, bypassing the company’s inventory, thereby optimizing logistics and reducing holding costs.

• Understanding Dropshipping: The video introduces dropshipping, explaining that it involves directly transferring products from the vendor to the customer, much like Amazon’s model, without the company needing to stock the product.
• Creating a Sales Quotation: A sales quotation is created for a customer, in this example, “MRF Tyres”.
• Adding a Dropshipped Product: A product (e.g., “HF80”) is added to the quotation, which was previously configured for dropshipping in its product and inventory settings.
• Confirming the Quotation: The sales quotation is then confirmed, which initiates the process for the dropshipped product.
• Accessing Purchase Information: After confirming the sales order, navigating to the “Purchase” tab or section reveals the automatically generated purchase order for the dropshipped item from the vendor (e.g., “Covestro”).
• Confirming the Purchase Order for Dropshipping: The purchase order to the vendor is confirmed.
• Direct Delivery from Vendor to Customer: The system then shows the delivery order (DS/00001) where the product is directly moved from the vendor (Covestro India Pvt. Ltd.) to the customer (MRF Tyres). This highlights that the product never physically enters the company’s warehouse.
• Creating a Vendor Bill: Finally, a vendor bill is created from the purchase order, which is then confirmed, concluding the financial transaction for the dropshipped product. This demonstrates the financial aspect of the dropshipping process, where the company pays the vendor after the product has been shipped to the customer.