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Level 1

DropShipping Entry

Hi. I started a drop shipping business. When a customer make a purchase, I will in term purchase the item from my supplier and they will ship the item out to the customer. 


The purchase is made via a credit card. What would be the best way capture that item? Would that consider an inventory, business expense, cost of good sold? Also, The total goods payment to supplier has a portion to shipping expense. Do I have to break that out as well? Thanks!



2 Comments 2
QuickBooks Team

DropShipping Entry

I'm here to help you record the items that were being purchased, MrTopazAl,


In QuickBooks Online (QBO), if you want to track the items as inventory, you can record them as inventory items. However, since you don't purchase them for the stock, you can record them as non-inventory. Please read this article on how to record them: Add Product And Services Items To QuickBooks Online.


As for the shipping fee, that is already included in the vendor payment. You'll want to create a service item for that fee. Creating a service item is the same as when you're adding an item as non-inventory. You'll only need to select Service.


I have included these help articles in case you have questions about QuickBooks Online. 


You can always touch base with us here if there's anything else you want. I'll always make sure to get back

Fiat Lux - ASIA
Level 15

DropShipping Entry


Consider having a dropship management app to help you

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