Drop shipment in Zoho Inventory allows you to fulfil a customer’s sales order directly from your vendor, bypassing your own warehouse. When you receive a sales order you cannot fulfil from stock, you raise a purchase order to the vendor with the customer’s delivery address. The vendor ships directly to the customer.
You create a sales order, then mark it for drop shipment. Zoho Inventory generates a linked purchase order to the preferred vendor. Once the vendor confirms dispatch, you mark the sales order as fulfilled. Stock levels in your warehouse are not affected.
Drop shipping reduces your warehousing and logistics burden but removes your control over delivery quality and timing. Use it for slow-moving items, out-of-stock situations, or products that are cheaper to ship directly from the manufacturer.
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