Definition
A PO (Purchase Order) is a formal document sent by a buyer to a supplier to request products, specifying items, quantities, prices, and terms.
Explanation
In dropshipping, a PO is the instruction that tells a supplier what to ship after a customer places an order. While many platforms automate this step, the concept remains the same: the store confirms what needs to be fulfilled and under what conditions.
P.O.s in dropshipping can be:
- Automated (via Shopify apps, APIs, or integrations)
- Manual (sent via email or supplier dashboards)
A typical PO includes:
- Product details (SKU, name, quantity)
- Customer shipping information
- Agreed pricing and payment terms
- Shipping method or notes (e.g., blind shipping)
Clear and accurate POs reduce fulfillment errors and speed up processing.
Example
A customer orders two phone stands from an online store:
- The store system generates a PO with product details and the customer’s address
- The PO is automatically sent to the supplier
- The supplier processes the order and ships the items directly to the customer
The PO acts as the bridge between the sale and fulfillment.
Key Takeaway
In dropshipping, a PO is the operational link between your store and supplier, ensuring orders are accurately processed and delivered.