Inventory glossary
What is Drop ship purchase order?
A drop ship purchase order is a purchase order sent to a supplier that ships the goods directly to the end customer instead of to the store's own warehouse.
For a small Shopify store, drop ship purchase orders let you sell products you never physically hold. You take the customer order, then place a purchase order with your supplier naming the customer's address as the ship-to location. The supplier packs and ships it, often with your brand on the label if they offer that.
The tricky part is tracking. You need to know which orders were sent to which supplier, whether they shipped, and when, since you have no stock sitting on your own shelf to check against. Treat each drop ship PO like a mini order with its own status: sent, confirmed, shipped, delivered.
Example
A candle store sells a scented candle it does not stock. A customer orders one on Monday. The store owner creates a drop ship purchase order for 1 unit with the supplier, listing the customer's home address as the delivery point. The supplier ships it Wednesday and the store gets a tracking number to forward to the customer.
Common mistakes
- Not confirming the supplier actually shipped before telling the customer it's on the way.
- Mixing drop ship POs with regular stock POs in the same tracking sheet, causing confusion over what ships where.
- Forgetting to update the customer's order status in Shopify after the supplier confirms shipment.
Drop ship purchase order and SteadyShelf
SteadyShelf drafts and sends purchase orders to suppliers based on forecasted demand and lead times, but it is built for restocking your own inventory, not for routing individual drop ship orders to customer addresses.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Purchase order · Dropshipping inventory · Supplier · Lead time · Receiving
FAQ
Does a drop ship purchase order affect my own inventory count?
No. Since the goods go straight from the supplier to the customer, they never touch your on hand inventory. You only need to track that the order was placed and fulfilled.
Can one purchase order cover multiple drop ship customers?
Usually no. Each drop ship purchase order ties to one customer's shipping address, so most stores create a separate PO per customer order, even if the supplier is the same.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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