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Key takeaways
- The customer places the order on the merchant's store
- The merchant automatically forwards the order to the supplier
- The supplier prepares and ships the parcel to the customer
- The merchant updates status and manages the customer relationship
What dropshipping means
Dropshipping is a commerce model where the seller (merchant) holds no physical stock. When an order arrives, it is passed to a supplier (manufacturer, distributor or wholesaler) who ships the product directly to the end customer, usually packaged in the merchant's name. The merchant earns the margin between selling price and purchase price.
How the flow works
The customer places the order on the merchant's store
The merchant automatically forwards the order to the supplier
The supplier prepares and ships the parcel to the customer
The merchant updates status and manages the customer relationship
Advantages and risks
Advantages: low startup capital, no storage costs, broad catalogue without stock investment
Risks: thin margins, dependence on supplier stock and accuracy, longer delivery times, limited control over quality and packaging
The real challenge: synchronisation
The biggest operational risk in dropshipping is stock and price desynchronisation between merchant and supplier. You sell something the supplier no longer has → cancellations, unhappy customers. That is why an order flow with real-time synchronisation (stock, price, status) is essential.
Tax aspects in Romania
In Romanian dropshipping, tax obligations remain: issuing the invoice (often via e-Factura for B2B), reporting in D394, and an appropriate commerce CAEN code. These obligations are handled in the accounting tool.
How Azuvio helps
Azuvio, as an OMS layer wired into ERPs and supplier systems, synchronises orders, stock and statuses between the merchant and multiple suppliers, auto-routes the order to the optimal supplier, and sends clean data (invoice, validated tax ID) to the accounting tool. Azuvio is not accounting software — it does not issue tax declarations; it ensures operational data reaches accounting/ERP correctly.
Frequently asked
- What is dropshipping?
- Dropshipping is a sales model where the merchant holds no stock: on receiving an order, the supplier ships the product directly to the end customer on the merchant's behalf.
- What does dropshipping mean in practice?
- The merchant sells products it does not physically stock; when an order comes in, it is forwarded to the supplier, who ships directly to the customer. The merchant earns the margin between selling and purchase price.
- What tax obligations does dropshipping have in Romania?
- An appropriate commerce CAEN code is used, and tax obligations (invoicing, e-Factura for B2B, D394 reporting) remain and are handled in the accounting tool.
- What is the biggest risk in dropshipping?
- Stock and price desynchronisation between merchant and suppliers — you sell products no longer available, causing cancellations and unhappy customers. A real-time OMS eliminates this risk.
- How does Azuvio help with dropshipping?
- Azuvio synchronises orders, stock and statuses between the merchant and multiple suppliers, auto-routes orders, and sends clean data to accounting/ERP. It is not accounting software and does not issue tax declarations.
Related terms
- e-Factura (RO_CIUS) — Romanian electronic invoice in XML UBL 2.1, mandatory B2B and B2G via the ANAF SPV portal.
- Declaration 394 (D394, Romania) — Romanian recapitulative informational declaration of domestic supplies/acquisitions, filed monthly by VAT payers to ANAF.
- CAEN code (Romanian NACE activity code) — The Romanian economic-activity classification code identifying a company's business object, used for registration, licensing and tax reporting; harmonised with EU NACE.
- Safety stock — Extra buffer inventory held to prevent stockouts caused by demand or supply variability.
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