Dropship in Odoo: Features, Basic Configuration & Custom Workflows

Can you use dropshipping with Odoo? Absolutely!

As is known, Odoo is a leading open-source ERP that helps streamline key business functions and transform them into a single source of truth. These functions are Customer Relationship Management (CRM), Human Resource Management (HRM), Accounting, Sales, Inventory, and more.

However, what does Odoo bring to the table for dropshipping businesses and which steps need to be taken to get started? Let’s dive in.

10+ Key Features For Dropshipping In Odoo

Let’s explore more than 10 key Odoo features that specifically complement dropshipping businesses:

• Automated Purchase Orders (PO): When the stock hits preset levels, Odoo automatically generates a PO. This helps reduce manual work and speed up product fulfilment
• Configurable Minimum Order Quantity (MOQ): Users can build custom workflows or set automated triggers to meet supplier MOQ rules
• Inventory Synchronisation: Users can sync stock levels automatically to maintain real-time inventory visibility. Moreover, users can get alerts automatically when product stock falls below a certain level to avoid stockouts
• Real-time Order Tracking: Odoo provides the latest order tracking data and enables users to deliver better customer support
• Automated Delivery Notices: After fulfilling the order, Odoo automatically sends customers emails with tracking information and a delivery confirmation
• Customer Relationship Management (CRM): Odoo also keeps track of customer interactions and purchase history to allow users to tailor their shopping experience
• Websites Builder: Sellers can quickly create a user-friendly web store with built-in SEO features to showcase their products and attract visitors
• E-commerce Promotions: Users can configure promotions, discount codes, or loyalty programs to boost sales
• Rule-Based Pricing: Odoo also allows sellers to set dynamic pricing rules to keep margins competitive and modify prices in response to changes in the market or supplier costs
• Multi-currency Pricing: This feature empowers global businesses to issue invoices, handle bills, or manage pricelists in several currencies
• Dropshipping App Integrations: Sellers can also make use of third-party Odoo apps that complement dropshipping features.

Read more: Odoo and Shopify Integration - Know Your Needs and How to Begin

Configuring Dropship In Odoo Purchase & Sales

1. How Odoo dropshipping works

Here are the key steps that users should take to enable the dropshipping feature inside Odoo:

Step 1: Enable dropship in Odoo Purchase

From the Odoo Purchase app:

• Go to “Configuration” and choose “Setting” 
• Go to “Logistics" and enable the “Dropshipping” option

Step 2: Configure dropshipping for products in Odoo Sales

From the Odoo Sales app

• Go to “Products” and choose “Products”.
• Edit a product and make sure to choose “Can be Sold” & “Can be Purchased”.
• Go to the Purchase tab and identify vendors and their related prices.
• Go to the Inventory tab and click on the “Dropship” option in Operations.

Step 3:  Perform order fulfilment flow

When an online purchase is completed with dropshipping requirements, Odoo automatically generates a sales order. It is attached with a request for quotation (RFQ) to your supplier. 

From the Odoo Sales app:

• Go to the sales order and click on the “Purchase” button at the top right to see the RQF
• Confirm the order and a Purchase Order (PO) is created
• Click on the “Dropship” button that appears at the top right to see the newly created dropship receipt. This receipt will include the supplier in the “Source Location” and the customer in the “Destination Location”
• Once the product has been delivered, click “Validate” to confirm the order quantity
• Go to “Inventory Overview” to view and manage all your dropship orders.

Above we have generated the standard steps to configure dropshipping in Odoo if you’re a seller. For more details and accurate information, please refer to Odoo documents.

2. Is this ideal for your business?

The above basic dropshipping configuration in Odoo is an excellent starting point if you have just started your dropshipping business or have a manageable range of products. This configuration fits mostly with:

• Small product range: You only have a few products to dropship.
• Basic supplier management: You only connect with a small number of dropshipping suppliers (simple communication and order fulfilment).
• Simple automation requirements: You don't need advanced automation capabilities like automated pricing or advanced inventory control methods.
• Compatible data structure & supplier systems: The data exchange between your supplier systems and Odoo is already compatible with Odoo and functions seamlessly.

Read more: Best Odoo 17 Improvements & What To Do Before Upgrading

What About Custom Dropshipping In Odoo?

1. Do you need more than just the basic dropship configuration?

Odoo provides the core configuration for dropshipping. However, what if your dropshipping operation is more complicated and needs specialised workflows? Here are the typical cases in which you might need custom dropshipping workflows:

• Complex supplier connections: You connect with dropshipping vendors who have distinct specifications or data formats.
• Advanced inventory control: You need advanced capabilities like multi-warehouse management or automated safety stock calculations.
• Unique pricing strategies: You use flexible pricing strategies based on competitors' pricing or client segmentation.
• Advanced systems integration: You also utilise external advanced systems, i.e. Warehouse Management System (WMS) or 3PL integrations.

2. Typical custom dropshipping workflows

If your business is growing fast or your dropshipping requirements are more complicated, consider developing custom workflows to level up Odoo's capabilities. Here are some typical advanced features that may align with larger dropshipping operations:

• Multi-step approval procedures: Create approval workflows for purchase orders that exceed a specific threshold, ensuring effective monitoring and budget control.
• Custom order statuses & tracking: Customise order statuses to follow the progress of dropshipped orders. This gives you more visibility into your fulfilment process and delivers quicker customer support.
• Trigger-based alerts: Establish automated notifications for certain occurrences (e.g., order fulfilment delays) to keep you informed and make quick decisions.
• Supplier integrations: Connect Odoo to your supplier's systems and apps to ensure seamless data exchange and automation.
• Setting up conditional routing: Create rules that automatically route orders to selected dropshipping suppliers depending on factors such as product type, supplier location, etc.

Our Last Words

Dropshipping with Odoo enables you to automate workflows, streamline inventory management, and gain useful insights into your business performance. 

Do you seek help to navigate your complex dropshipping workflows in Odoo? Our Odoo specialists go beyond basic configuration. Discuss your case with our Odoo specialists and let us help build your desired workflows from start to finish.