Understanding Inventory Levels when Dropshipping

Please read first! For information related to Sellercloud’s original interface, download this file.

When dropshipped orders are received by Sellercloud, aggregate and physical inventory quantities will be adjusted. This guide covers how dropshipped orders affect inventory levels to help you better understand the impact on your inventory.


Aggregate quantity

The aggregate quantity will be reduced to reserve inventory when an order comes into Sellercloud and is dropship requested. Once the tracking information is updated, the inventory level restores. The Client Setting: Mark dropship PO as recieved only when dropship acknowledged sets the restoration to occur only when the dropship is acknowledged.


Physical quantity

As soon as an order is dropship requested, it will be considered received and the physical quantity will be updated. When the dropship status is set to processed and the tracking is updated, the physical quantity will be reduced.

For example, if physical quantity is 100 and an order with a quantity of two is dropship requested. The physical quantity will adjust to show 102. When set to processed and tracking is updated, the physical quantity will revert to 100.

On each vendor’s details page, you can select in which warehouse inventory adjustments are reflected.


Dropshipping from a feed-based vendor

Different import options can be set via plugins or with the inventory import mapping tool. Sellercloud can customize the platform to accept your vendor format and update inventory accordingly.

A feed-based vendor is a vendor whose quantity is fed into your inventory. When dropshipping from this type of vendor, you should disable inventory for their dropshipped POs. This ensures your inventory count isn’t impacted or adjusted for pending or actual dropshipped orders. To do this, enable the setting Do Not Count Inventory For DropShip PO.

  1. Go to Purchasing > Vendors > Manage Vendors.
  2. Select your Vendor > Toolbox > Dropship Preferences.
  3. Click Edit > Do Not Count Inventory For Dropship Orders.
sellercloud dropship preferences


Dropship warehouses

A warehouse type can be set as DropShip warehouse. This will allow you to easily track vendor inventory. Multiple Warehouses can be set as DropShip to better organize your workflow.

  1. Go to Inventory > Warehouses > Manage Warehouses.
  2. Select the warehouse > Edit.
  3. Change the Type to DropShip > click the check to save.
sellercloud dropship warehouse setting


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