Managing Dropship Orders in OMS

Dropshipping is a powerful fulfillment strategy that enables businesses to sell products without holding physical inventory. Instead, customer orders are forwarded directly to third-party suppliers, who ship the items directly to the end customer. The BetterCommerce Order Management System (OMS) provides robust tools to manage dropship orders efficiently and transparently.

What is a Dropship Order?

A dropship order is a sales order fulfilled by a third-party supplier or manufacturer instead of your internal warehouse. You don’t stock the product—instead, you purchase it from the supplier only when an order is received, and the supplier handles the shipping.

Benefits of Dropshipping

• No need to manage inventory
• Lower overhead costs
• Greater product variety
• Faster product expansion and testing
• Flexible fulfillment strategy

How Dropship Orders Work in OMS

1. Order Placement

Customer places an order online as usual. The OMS detects whether the product is configured for dropshipping.

2. Order Classification

The order is automatically assigned to the Dropship tab in the OMS interface for special handling.

3. Vendor Notification

The dropship supplier receives order details via:

• Email
• EDI (Electronic Data Interchange)
• API (if integrated)

4. Order Acknowledgment

The supplier acknowledges the order and provides an estimated shipping date and tracking details.

5. Shipping & Fulfillment

The supplier ships the product directly to the customer. OMS updates the order status accordingly:

Sent to Vendor → Acknowledged by Vendor → Dispatched

6. Tracking & Confirmation

Tracking numbers and dispatch details are updated in OMS, and optionally communicated to the customer via email or SMS.

Key OMS Features for Dropship Management

• Dedicated Dropship Tab
  Quickly access all active dropship orders in one place.

• Supplier Mapping & SLAs
  Set up vendors with service-level agreements and expected handling times.

• Status Workflow Automation
  Automate transitions between order statuses (e.g., Sent to Vendor → Acknowledged).

• Shipping Service Integration
  Sync carrier and shipping data from the supplier.

• Exception Handling
  Identify delays or failed shipments through the Exceptions tab.

Best Practices for Managing Dropship Orders

• Vet Suppliers Carefully
  Ensure reliable suppliers who meet SLAs and quality standards.

• Keep Customers Informed
  Display realistic shipping estimates and send proactive updates.

• Track Performance
  Use OMS analytics to measure dropship success rate, delay frequency, and cancellation rate.

• Align Inventory Feeds
  Maintain real-time supplier inventory updates to avoid overselling.

• Use Acknowledgment Protocols
  Enforce acknowledgment rules for vendors to confirm receipt and acceptance of orders.

Summary

Managing dropship orders through BetterCommerce OMS provides visibility, control, and automation to support a smooth fulfillment experience. By leveraging the Dropship-specific workflows and integrations, businesses can expand their product offerings without added warehouse costs while ensuring customers receive their orders on time.

Empower your business with flexible fulfillment—dropshipping made efficient in OMS.