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terminology doubt

Former Member
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Dear Experts,

Drop shipping is referring to the Retailer who gets goods from wholesaler who delivers goods to customer.

So, the Retailer or seller is the drop shipper.

But who dropships to whom? This is my question. Is it the wholesaler dropship to retailer ?

I just need to clarify the terminology.

Thanks.

regards

Bass

Accepted Solutions (1)

Accepted Solutions (1)

Shiva_Ram
Active Contributor
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But who dropships to whom? This is my question. Is it the wholesaler dropship to retailer ?

In your example, wholesaler drops the shipment at customer site. The customer places order with retailer, and retailer issues PO to wholesaler to dropship the product to retailer's customer site.

As mentioned before, drop shipment is another name of third party sales used by businesses.

Regards,

Answers (1)

Answers (1)

Former Member
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Hi,

Drop shipment is nothing but a third party sale. Where our vendor ship goods to our customer and send invoice to us after that we issue invoice to customer.

Process >>

Sales order (Schedule line CS & Item category TAS) - VA01 >> P.R generate after save of sales order - ME52N >> Convert P.R in to P.O - ME21N >> Vendor ship goods to our customer >> Invoice recipt (Vendor sent to US) - MIRO >> Issue invoice to customer(by us) - VF01

kapil

Former Member
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Sorry, but my doubt lies in the terminology. who dropshipment to whom in a third party sales ?

Former Member
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could be like - shipment activity need not be done - i.e. shipment dropped. shipment is done by vendor.

probably drop shipment applies to the entity taking order from customer and raising PO to vendor and requesting vendor to do the shipment.

thanks