Drop Shipping is a supply chain management technique wherein a retailer does not keep goods in stock. Instead, they transfer customer order details and shipment details to the supplier. This supplier can be a manufacturer or another retailer who will directly ship the ordered items to the customer.

Dropshipping allows retailers to focus more on marketing and selling part of business and let other parties handle warehousing and transportation processes. It also reduces the risk since no goods need to be bought upfront or kept in stock. Instead, an order can be given for the items only when the customer places a confirmed order.

Although Drop Shipping does allow a retailer to have less control over inventory and customer experience, Drop Shipping is considered a highly effective supply chain technique. ERPNext allows you to manage Drop Shipping Items directly to your customers by placing an order with the supplier.