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Now that you understand what Shopify considers a location, let’s dive into how Shopify Locations actually work.
Shopify assigns online orders and in-person sales to locations to ensure inventory quantities are accurate and updated in real time. Should a product be out of stock at one location, but another location has the same product in stock, Shopify will automatically split the order. Once the order is split, it will be fulfilled from multiple vendors in accordance to inventory levels.
Before making the leap to Shopify, there are some challenges and caveats you should be aware of.
Firstly, if your business has many locations, you will need to upgrade your Shopifty plan, as each subscription has a location limit. As mentioned, this location maximum includes third party applications that sell products, ship or fulfill orders, and stock inventory. This includes dropshipping apps, third-party logistics services, and custom fulfillment services.
Additionally, there are some challenges when it comes to vendor relationships. On Shopify, the only way to get inventory feeds directly from your vendor is through a CSV file. Similarly, you are unable to send purchase orders directly to vendors through Shopify.
In terms of order routing, Shopify uses a very simple priority system to decide which location should fulfill your orders. Additionally, all of your locations must operate under the same SKUs and costs.
Overall, Shopify Locations is a great system for handling the basics of multiple locations. If you do not have that many additional locations and are looking to leverage simple order routing technology, Shopify may be a great solution for you.
If your business has more advanced location needs than Shopify Locations can handle, there are solutions that may be better suited for you.
A dropship automation solution, like Duoplane, uses advanced order routing logic. This means that the system will automatically route orders to be fulfilled by the closest supplier or the lowest cost vendor depending on your preference.
Unlike many alternatives, Duoplane allows unlimited suppliers at no extra cost. You can even customize how and when orders are sent to each supplier. For example, in the form of a PDF, CSV, XLS, and many more. Additionally, you have the ability to automate inventory feeds from suppliers and automate receiving tracking updates from suppliers.
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