Odoo 18 Dropshipping Configuration

A Step-by-Step Guide

Mastering Odoo 18 Dropshipping Configuration allows your business to sell products without holding any physical inventory, streamlining operations and potentially boosting profits. Consequently, this tutorial provides a detailed, step-by-step walkthrough to effectively set up and manage dropshipping within Odoo 18. Furthermore, by following these instructions, you can optimize your delivery processes, ensuring that your suppliers ship directly to your customers seamlessly. Therefore, let’s dive into how you can leverage Odoo 18 for an efficient dropshipping model.

What is Dropshipping and Why Use It with Odoo 18?

Firstly, dropshipping is an order fulfillment method where a business doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party—usually a wholesaler or manufacturer—and has it shipped directly to the customer. Thus, the seller doesn’t have to handle the product directly.

Key Advantages of an Odoo 18 Direct Fulfillment Setup

Implementing an Odoo 18 direct fulfillment setup offers several compelling benefits.

• Reduced Capital Investment: Primarily, you avoid the significant costs associated with purchasing and storing inventory. This lowers your startup costs and financial risk.
• Wider Product Selection: Moreover, since you don’t pre-purchase items, you can offer a broader array of products to your customers. You can easily list new items from your supplier’s catalog.
• Increased Flexibility: Additionally, you can run your business from anywhere with an internet connection. You don’t need a physical warehouse.
• Scalability: Furthermore, as your business grows, Odoo 18 can handle increasing order volumes efficiently, automating many aspects of the dropshipping process. Your main focus remains on customer acquisition and marketing.
• No Inventory Management Hassle: Consequently, you eliminate tasks like stock counting, managing warehouse space, and dealing with unsold inventory. Odoo 18, when configured for dropshipping, handles the virtual flow of goods.

Preparing Your Odoo 18 for Dropship Success

Next, before you can start dropshipping, you need to ensure your Odoo 18 environment is correctly configured. This involves activating the necessary modules and settings.

Essential Odoo Modules for Your Dropshipping Configuration

To effectively manage an Odoo 18 Dropshipping Configuration, you primarily need the following Odoo applications installed and properly set up:

• Sales: This module is crucial for creating sales orders when customers purchase from you.
• Purchase: This module will be used to automatically generate purchase orders to your dropship suppliers.
• Inventory: While you won’t hold physical stock, the Inventory module is essential for managing product routes, including the dropship route, and tracking the conceptual movement of goods.
• Accounting: This module helps manage customer invoices and vendor bills seamlessly.

You can install these applications from the Odoo Apps menu if they are not already active in your database.

Activating the Dropshipping Feature in Odoo 18 Settings

Subsequently, you must enable the dropshipping feature within Odoo’s settings. This is a critical step for the entire Odoo 18 Dropshipping Configuration to function.

1. Navigate to Inventory Settings: Firstly, go to the Inventory application.
2. Access Configuration: Then, in the Inventory module, find the Configuration menu and select Settings.
3. Enable Dropshipping: Within the Inventory settings, look for the “Warehouse” or “Traceability” section. You should find an option labeled “Dropshipping.” Ensure you check this box to activate the feature. The VTT file clearly shows this step under Inventario > Configuración > Ajustes, then enabling “Dropshipping.”
4. Save Changes: Finally, remember to click the “Save” button to apply these changes. Odoo might need a moment to install any related sub-modules or apply the configuration.

Once enabled, Odoo creates a specific “Dropship” route that you can assign to your products.

Configuring Products for Your Odoo Dropshipping Workflow

After enabling the global dropshipping setting, the next crucial part of your Odoo 18 Dropshipping Configuration is setting up individual products to be dropshipped.

Setting Up Products for Direct Supplier-to-Customer Shipping

For each product you intend to dropship, you must configure its route correctly.

1. Open Product Form: Navigate to the Inventory or Sales application and open the product you wish to configure for dropshipping (e.g., “Product X”). You can find products under Products > Products.
2. Go to the Inventory Tab: Within the product form, click on the Inventory tab.
3. Select the Dropship Route: In the “Operations” or “Routes” section, you will see a list of available routes. Ensure that the “Dropship” route is selected for this product. The VTT highlights that when you select “Dropship,” Odoo might also automatically select “Make To Order” (MTO), as dropshipping is essentially a form of MTO where the “manufacturing” is done by your supplier fulfilling the order. The key is that “Dropship” must be checked. This tells Odoo not to expect this item in your physical stock but to trigger a purchase from a supplier when a sales order for this item is confirmed.

Assigning Vendors for Your Odoo 18 Dropship Items

Equally important is specifying which supplier will fulfill the orders for each dropshipped product.

1. Go to the Purchase Tab: On the same product form, navigate to the Purchase tab.
2. Add a Vendor: In the “Vendors” section, click “Add a line.”
3. Select Your Supplier: Choose the vendor (supplier) who will be responsible for dropshipping this product. If the vendor is not yet in your system, you will need to create them first (usually in the Purchase app).
4. Enter Vendor Price: Input the price at which you purchase the product from this vendor. You can also specify other details like delivery lead time if provided by the vendor.
5. Multiple Vendors (Optional): Odoo allows you to list multiple vendors for a single product. If you have several suppliers for the same dropshipped item, you can list them all. When a dropship purchase order is generated, Odoo will typically use the first listed vendor or allow you to choose if multiple are configured with similar priority. The VTT shows adding a “Proveedor” (Vendor) and a price.

By correctly setting the route and vendor on the product, you complete the core product-level Odoo 18 Dropshipping Configuration.

The Odoo 18 Dropshipping Process in Action: Step-by-Step

Now, let’s walk through the entire dropshipping flow in Odoo 18, from a customer placing an order to the supplier shipping the product.

Step 1: Creating a Sales Order for a Dropship Item

The process begins when a customer orders a product that you have configured for dropshipping.

1. Create a Sales Order: Go to the Sales application and create a new quotation (which will become a sales order).
2. Add Customer and Product: Select the customer and add the dropship-configured product (e.g., “Product X”) to the order lines. Set the quantity and sales price.
3. Confirm the Sales Order: Once all details are correct, confirm the sales order. The VTT demonstrates creating a “Presupuesto” (Quotation) and then confirming it to become an “Orden de Venta” (Sales Order).

Step 2: Automatic Purchase Order Generation for Your Supplier

This is where the magic of your Odoo 18 Dropshipping Configuration comes into play.

1. Automatic RFQ Creation: Upon confirmation of the sales order containing a dropship product, Odoo automatically generates a Request for Quotation (RFQ) – which will become a Purchase Order – to the vendor you specified on the product’s Purchase tab.
2. Locate the RFQ/PO: You can find this automatically generated RFQ in the Purchase application. It will be linked to the sales order. The VTT shows how a “Solicitud de presupuesto” (Request for Quotation) is created automatically.
3. Verify and Confirm PO: Review the RFQ details (supplier, product, quantity, price). If everything is correct, confirm the RFQ to turn it into a Purchase Order and send it to your supplier. Some businesses automate sending the PO to the supplier as well.

Step 3: Vendor Ships Directly to the Customer

Once your supplier receives and processes the Purchase Order, they will ship the product directly to your customer’s address (which Odoo passes from the Sales Order to the Purchase Order for dropshipping purposes).

1. Supplier Fulfillment: The supplier handles packaging and shipping.
2. Tracking in Odoo:
   • Sales Order Delivery: On your Sales Order in Odoo, a “Delivery” operation will be created. This delivery operation is marked as “Dropship” and its destination location will be the customer’s address. You (or your supplier, if integrated) will mark this as done once the customer receives the goods.
   • Purchase Order Receipt: On your Purchase Order in Odoo, a “Receipt” operation is created. For dropshipping, you don’t physically receive these goods. This receipt signifies that your supplier has shipped the goods (or that they have been received by the customer, depending on your workflow). The VTT explains that the “destino” (destination) for the purchase order’s receipt in a dropship scenario is effectively your customer, managed via a specific dropship location or route.

The key is that the physical product bypasses your warehouse entirely.

Step 4: Managing Invoicing and Payments in Odoo

Finally, you need to handle the financial aspects.

1. Invoice Your Customer: From the confirmed Sales Order, you can create an invoice for your customer. Send this invoice and collect payment as per your terms.
2. Receive and Pay Vendor Bill: Your supplier will send you a bill for the product they shipped. You will enter this as a Vendor Bill in Odoo (often generated from the confirmed Purchase Order) and process the payment to your supplier.

Your Odoo 18 Dropshipping Configuration ensures that these financial flows are also tracked within the system, linking back to the respective sales and purchase orders.

Advanced Tips for Optimizing Your Odoo 18 Dropshipping Operations

To further enhance your dropshipping business using Odoo 18, consider these advanced strategies.

Managing Multiple Suppliers for Enhanced Dropshipping Flexibility

If you source products from various suppliers, Odoo’s vendor pricelist feature on the product form is invaluable.

• Prioritize Suppliers: You can set preferences for which supplier to use if multiple can provide the same product.
• Best Price Strategy: This allows you to potentially choose the supplier offering the best price or fastest delivery for each order, although automating this choice in a pure dropship RFQ generation might require customization or careful manual selection if not using the default first vendor.

Streamlining Communication in Your Odoo Dropship Model

Clear communication is vital in dropshipping.

• Automated Notifications: Configure Odoo to send automated email notifications to customers when their order is confirmed and when it’s shipped (triggered by the validation of the dropship delivery).
• Supplier Communication: Maintain clear communication channels with your suppliers regarding order details, shipping confirmations, and tracking numbers. Odoo’s chatter feature on orders can help log communications.

Efficiently Handling Returns and Customer Service with Dropshipping

Returns can be more complex with dropshipping.

• Establish Clear Policies: Define your return policy clearly. Decide if customers return items to you (and you then deal with the supplier) or directly to the supplier.
• Odoo’s Return Management: Utilize Odoo’s Return Merchandise Authorization (RMA) capabilities if needed, though the logistics will depend on your agreement with your supplier. The key is to coordinate the return process effectively between the customer, your company, and the supplier.

Conclusion: Streamline Your Business with Odoo 18 Dropshipping

In summary, a proper Odoo 18 Dropshipping Configuration empowers businesses to operate with minimal overhead and maximum flexibility. By carefully setting up the necessary modules, activating the dropshipping feature, configuring products with the correct routes and vendor information, and understanding the automated order processing flow, you can create a highly efficient sales channel. Therefore, by following this guide, you can confidently implement and manage a successful dropshipping strategy using Odoo 18, allowing you to focus on growth and customer satisfaction while Odoo handles the operational complexities.

For further detailed information on Odoo’s capabilities, you can always consult the official Odoo Documentation.