What are Drop Ship Items and how do they work? – Pulse Commerce Help Center

Drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer. Instead of purchasing a large amount of inventory, you simply partner with a drop shipping supplier and list their merchandise for sale.

Then, once you receive an order, you forward it to the supplier for fulfillment.

Creating Drop Ship SKUs

Go to Products > Product Catalog Manager.
Add New Product
Fill all the required information and for Product Type select the option – Drop Ship Item.
Once the product is created you will notice this product's inventory tab is missing.
All Drop Ship Items must be configured with the vendor. Go to the Vendors tab and select the vendor/supplier.

Receiving Drop Ship orders

Customers can place orders for Drop Ship item type SKUs just like inventory SKUs. Admin users can create sales orders for drop ship SKUs just as for inventory SKUs. The only key difference is that there is no warehouse location assigned for drop ship line items. Instead, there is a PO vendor, with a PO created automatically.

Fulfilling Drop Ship Orders:

Find the relevant PO under Purchase Order > View Purchase Order (Drop Ship) and click mark it as shipped by clicking Approve PO. Note that unlike other Purchase Orders, the Ship To address is the customer's direct address (since the vendor is sending it directly to the customer).
Under the CRM tab, email the vendor with the details of the PO.
Once you have confirmation from the Vendor that the items have shipped, use the Mark As Shipped action at the top or bottom of the screen and enter in the shipping information from the Vendor.
Once it's marked as shipped, the system will update the connected Sales Order line item status to Shipped. If this makes all items on the order shipped, then the order will become Shipped.