diff --git a/packages/medusa/src/models/draft-order.ts b/packages/medusa/src/models/draft-order.ts
new file mode 100644
index 0000000000..0228289b90
--- /dev/null
+++ b/packages/medusa/src/models/draft-order.ts
@@ -0,0 +1,155 @@
+import {
+  Entity,
+  Generated,
+  BeforeInsert,
+  Index,
+  Column,
+  CreateDateColumn,
+  UpdateDateColumn,
+  PrimaryColumn,
+  OneToOne,
+  JoinColumn,
+  ManyToOne,
+  JoinTable,
+  ManyToMany,
+  OneToMany,
+} from "typeorm"
+import { ulid } from "ulid"
+import { Address } from "./address"
+
+import { Cart } from "./cart"
+import { Customer } from "./customer"
+import { Discount } from "./discount"
+import { LineItem } from "./line-item"
+import { Order } from "./order"
+import { Payment } from "./payment"
+import { Region } from "./region"
+import { ShippingMethod } from "./shipping-method"
+
+enum DraftOrderStatus {
+  OPEN = "open",
+  AWAITING = "awaiting",
+  COMPLETED = "completed",
+}
+
+@Entity()
+export class DraftOrder {
+  @PrimaryColumn()
+  id: string
+
+  @Column({ type: "enum", enum: DraftOrderStatus, default: "open" })
+  status: DraftOrderStatus
+
+  @Index()
+  @Column()
+  @Generated("increment")
+  display_id: number
+
+  @Index()
+  @Column({ nullable: true })
+  cart_id: string
+
+  @OneToOne(() => Cart)
+  @JoinColumn({ name: "cart_id" })
+  cart: Cart
+
+  @Index()
+  @Column({ nullable: true })
+  order_id: string
+
+  @OneToOne(() => Order)
+  @JoinColumn({ name: "order_id" })
+  order: Order
+
+  @Index()
+  @Column()
+  customer_id: string
+
+  @ManyToOne(() => Customer, { cascade: ["insert"] })
+  @JoinColumn({ name: "customer_id" })
+  customer: Customer
+  
+  @OneToMany(
+    () => LineItem,
+    lineItem => lineItem.draft_order,
+    { cascade: ["insert", "remove"] }
+  )
+  items: LineItem[]
+
+  @Column()
+  email: string
+
+  @Index()
+  @Column({ nullable: true })
+  billing_address_id: string
+
+  @ManyToOne(() => Address, { cascade: ["insert"] })
+  @JoinColumn({ name: "billing_address_id" })
+  billing_address: Address
+
+  @Index()
+  @Column({ nullable: true })
+  shipping_address_id: string
+
+  @ManyToOne(() => Address, { cascade: ["insert"] })
+  @JoinColumn({ name: "shipping_address_id" })
+  shipping_address: Address
+
+  @Index()
+  @Column()
+  region_id: string
+
+  @ManyToOne(() => Region)
+  @JoinColumn({ name: "region_id" })
+  region: Region
+
+  @ManyToMany(() => Discount, { cascade: ["insert"] })
+  @JoinTable({
+    name: "draft_order_discounts",
+    joinColumn: {
+      name: "draft_order_id",
+      referencedColumnName: "id",
+    },
+    inverseJoinColumn: {
+      name: "discount_id",
+      referencedColumnName: "id",
+    },
+  })
+  discounts: Discount[]
+
+  @OneToMany(
+    () => ShippingMethod,
+    m => m.draft_order,
+    { cascade: ["soft-remove", "remove"] }
+  )
+  shipping_methods: ShippingMethod[]
+
+  @OneToMany(
+    () => Payment,
+    p => p.draft_order,
+    { cascade: ["insert"] }
+  )
+  payments: Payment[]
+
+  @Column({ nullable: true, type: "timestamptz" })
+  canceled_at: Date
+
+  @CreateDateColumn({ type: "timestamptz" })
+  created_at: Date
+
+  @UpdateDateColumn({ type: "timestamptz" })
+  updated_at: Date
+
+  @Column({ type: "jsonb", nullable: true })
+  metadata: any
+
+  @Column({ nullable: true })
+  idempotency_key: string
+
+  @BeforeInsert()
+  private beforeInsert() {
+    if (this.id) return
+    const id = ulid()
+    this.id = `dorder_${id}`
+  }
+}
diff --git a/packages/medusa/src/models/line-item.ts b/packages/medusa/src/models/line-item.ts
index 764fd14df8..f5d0099b0e 100644
--- a/packages/medusa/src/models/line-item.ts
+++ b/packages/medusa/src/models/line-item.ts
@@ -17,6 +17,7 @@ import { Cart } from "./cart"
 import { Order } from "./order"
 import { ClaimOrder } from "./claim-order"
 import { ProductVariant } from "./product-variant"
+import { DraftOrder } from "./draft-order"
 
 @Check(`"fulfilled_quantity" <= "quantity"`)
 @Check(`"shipped_quantity" <= "fulfilled_quantity"`)
@@ -48,6 +49,17 @@ export class LineItem {
   )
   @JoinColumn({ name: "order_id" })
   order: Order
+  
+  @Index()
+  @Column({ nullable: true })
+  draft_order_id: string
+
+  @ManyToOne(
+    () => DraftOrder,
+    dorder => dorder.items
+  )
+  @JoinColumn({ name: "draft_order_id" })
+  draft_order: DraftOrder
 
   @Index()
   @Column({ nullable: true })
diff --git a/packages/medusa/src/models/order.ts b/packages/medusa/src/models/order.ts
index 213949f3bb..e9b06aa1e2 100644
--- a/packages/medusa/src/models/order.ts
+++ b/packages/medusa/src/models/order.ts
@@ -32,6 +32,7 @@ import { Refund } from "./refund"
 import { Swap } from "./swap"
 import { ClaimOrder } from "./claim-order"
 import { ShippingMethod } from "./shipping-method"
+import { DraftOrder } from "./draft-order"
 
 export enum OrderStatus {
   PENDING = "pending",
@@ -212,6 +213,13 @@ export class Order {
   )
   swaps: Swap[]
 
+  @Column({ nullable: true })
+  draft_order_id: string
+
+  @OneToOne(() => DraftOrder)
+  @JoinColumn({ name: "draft_order_id" })
+  draft_order: DraftOrder
+
   @OneToMany(
     () => LineItem,
     lineItem => lineItem.order,
diff --git a/packages/medusa/src/models/payment.ts b/packages/medusa/src/models/payment.ts
index df0cc45c2e..0f8b8e9be0 100644
--- a/packages/medusa/src/models/payment.ts
+++ b/packages/medusa/src/models/payment.ts
@@ -16,6 +16,7 @@ import { Swap } from "./swap"
 import { Currency } from "./currency"
 import { Cart } from "./cart"
 import { Order } from "./order"
+import { DraftOrder } from "./draft-order"
 
 @Entity()
 export class Payment {
@@ -49,6 +50,14 @@ export class Payment {
   @JoinColumn({ name: "order_id" })
   order: Order
 
+  @Index()
+  @Column({ nullable: true })
+  draft_order_id: string
+
+  @OneToOne(() => DraftOrder)
+  @JoinColumn({ name: "draft_order_id" })
+  draft_order: DraftOrder
+
   @Column({ type: "int" })
   amount: number
 
diff --git a/packages/medusa/src/models/shipping-method.ts b/packages/medusa/src/models/shipping-method.ts
index 19af8cae18..d385585a8b 100644
--- a/packages/medusa/src/models/shipping-method.ts
+++ b/packages/medusa/src/models/shipping-method.ts
@@ -17,6 +17,7 @@ import { Cart } from "./cart"
 import { Swap } from "./swap"
 import { Return } from "./return"
 import { ShippingOption } from "./shipping-option"
+import { DraftOrder } from "./draft-order"
 
 @Check(
   `"claim_order_id" IS NOT NULL OR "order_id" IS NOT NULL OR "cart_id" IS NOT NULL OR "swap_id" IS NOT NULL OR "return_id" IS NOT NULL`
@@ -67,6 +68,14 @@ export class ShippingMethod {
   @Column({ nullable: true })
   return_id: string
 
+  @Index()
+  @Column({ nullable: true })
+  draft_order_id: string
+
+  @ManyToOne(() => DraftOrder)
+  @JoinColumn({ name: "draft_order_id" })
+  draft_order: DraftOrder
+
   @OneToOne(
     () => Return,
     ret => ret.shipping_method
diff --git a/packages/medusa/src/repositories/draft-order.ts b/packages/medusa/src/repositories/draft-order.ts
new file mode 100644
index 0000000000..6ba65d1c8a
--- /dev/null
+++ b/packages/medusa/src/repositories/draft-order.ts
@@ -0,0 +1,5 @@
+import { EntityRepository, Repository } from "typeorm"
+import { DraftOrder } from "../models/draft-order"
+
+@EntityRepository(DraftOrder)
+export class DraftOrderRepository extends Repository<DraftOrder> {}
diff --git a/packages/medusa/src/services/draft-order.js b/packages/medusa/src/services/draft-order.js
new file mode 100644
index 0000000000..f12895cb75
--- /dev/null
+++ b/packages/medusa/src/services/draft-order.js
@@ -0,0 +1,361 @@
+import _ from "lodash"
+import { BaseService } from "medusa-interfaces"
+import { MedusaError } from "medusa-core-utils"
+
+/**
+ * Handles swaps
+ * @implements BaseService
+ */
+class DraftOrderService extends BaseService {
+  static Events = {
+    CREATED: "draft_order.created",
+  }
+
+  constructor({
+    manager,
+    draftOrderRepository,
+    eventBusService,
+    addressRepository,
+    cartService,
+    totalsService,
+    lineItemService,
+    productVariantService,
+    shippingOptionService,
+    regionService,
+  }) {
+    super()
+
+    /** @private @const {EntityManager} */
+    this.manager_ = manager
+
+    /** @private @const {SwapModel} */
+    this.draftOrderRepository_ = draftOrderRepository
+
+    /** @private @const {TotalsService} */
+    this.totalsService_ = totalsService
+
+    /** @private @const {AddressRepository} */
+    this.addressRepository_ = addressRepository
+
+    /** @private @const {LineItemService} */
+    this.lineItemService_ = lineItemService
+
+    /** @private @const {ReturnService} */
+    this.returnService_ = returnService
+
+    /** @private @const {CartService} */
+    this.cartService_ = cartService
+
+    /** @private @const {RegionService} */
+    this.regionService_ = regionService
+
+    /** @private @const {ProductVariantService} */
+    this.productVariantService_ = productVariantService
+
+    /** @private @const {ShippingOptionService} */
+    this.shippingOptionService_ = shippingOptionService
+
+    /** @private @const {EventBusService} */
+    this.eventBus_ = eventBusService
+  }
+
+  withTransaction(transactionManager) {
+    if (!transactionManager) {
+      return this
+    }
+
+    const cloned = new DraftOrderService({
+      manager: transactionManager,
+      draftOrderRepository: this.draftOrderRepository_,
+      eventBusService: this.eventBus_,
+      cartService: this.cartService_,
+      totalsService: this.totalsService_,
+      productVariantService: this.productVariantService_,
+      lineItemService: this.lineItemService_,
+    })
+
+    cloned.transactionManager_ = transactionManager
+
+    return cloned
+  }
+
+  /**
+   * Retrieves a draft order with the given id.
+   * @param {string} id - id of the draft order to retrieve
+   * @return {Promise<DraftOrder>} the draft order
+   */
+  async retrieve(id, config = {}) {
+    const draftOrderRepo = this.manager_.getCustomRepository(
+      this.draftOrderRepository_
+    )
+
+    const validatedId = this.validateId_(id)
+
+    const query = this.buildQuery_({ id: validatedId }, config)
+
+    const draftOrder = await draftOrderRepo.findOne(query)
+
+    if (!draftOrder) {
+      throw new MedusaError(
+        MedusaError.Types.NOT_FOUND,
+        `Draft order with id: ${id} was not found`
+      )
+    }
+
+    return draftOrder
+  }
+
+  /**
+   * Retrieves a draft order based on its associated cart id
+   * @param {string} cartId - cart id that the draft orders's cart has
+   * @return {Promise<DraftOrder>} the draft order
+   */
+  async retrieveByCartId(cartId, relations = []) {
+    const draftOrderRepo = this.manager_.getCustomRepository(
+      this.draftOrderRepository_
+    )
+
+    const draftOrder = await draftOrderRepo.findOne({
+      where: {
+        cart_id: cartId,
+      },
+      relations,
+    })
+
+    if (!draftOrder) {
+      throw new MedusaError(
+        MedusaError.Types.NOT_FOUND,
+        `Draft order was not found`
+      )
+    }
+
+    return draftOrder
+  }
+
+  /**
+   * Lists draft orders
+   * @param {Object} selector - query object for find
+   * @param {Object} config - configurable attributes for find
+   * @return {Promise<Array<DraftOrder>>} list of draft orders
+   */
+  async list(
+    selector,
+    config = { skip: 0, take: 50, order: { created_at: "DESC" } }
+  ) {
+    const draftOrderRepo = this.manager_.getCustomRepository(
+      this.draftOrderRepository_
+    )
+
+    const query = this.buildQuery_(selector, config)
+
+    return draftOrderRepo.find(query)
+  }
+
+  async setAddress_(region, address) {
+    const addressRepo = this.manager_.getCustomRepository(
+      this.addressRepository_
+    )
+
+    const regCountries = region.countries.map(({ iso_2 }) => iso_2)
+
+    if (!address.country_code) {
+      throw new MedusaError(
+        MedusaError.Types.INVALID_DATA,
+        `Address is missing country code`
+      )
+    }
+
+    if (!regCountries.includes(address.country_code)) {
+      throw new MedusaError(
+        MedusaError.Types.INVALID_DATA,
+        `Country ${address.country_code} is not in region ${region.name}`
+      )
+    }
+
+    const created = addressRepo.create(adress)
+    return created
+  }
+
+  /**
+   * Confirms if the contents of a line item is covered by the inventory.
+   * To be covered a variant must either not have its inventory managed or it
+   * must allow backorders or it must have enough inventory to cover the request.
+   * If the content is made up of multiple variants it will return true if all
+   * variants can be covered. If the content consists of a single variant it will
+   * return true if the variant is covered.
+   * @param {(LineItemContent | LineItemContentArray)} - the content of the line
+   *     item
+   * @param {number} - the quantity of the line item
+   * @return {boolean} true if the inventory covers the line item.
+   */
+  async confirmInventory_(variantId, quantity) {
+    // If the line item is not stock tracked we don't have double check it
+    if (!variantId) {
+      return true
+    }
+
+    return this.productVariantService_.canCoverQuantity(variantId, quantity)
+  }
+
+  async addLineItem(doId, lineItem) {
+    return this.atomicPhase_(async manager => {
+      const draftOrder = await this.retrieve(doId, {
+        relations: [
+          "shipping_methods",
+          "items",
+          "payment_sessions",
+          "items.variant",
+          "items.variant.product",
+        ],
+      })
+
+      if (draftOrder.status !== "open") {
+        throw new MedusaError(
+          MedusaError.Types.NOT_ALLOWED,
+          "You are not allowed to add items to a draft order with status awaiting or completed"
+        )
+      }
+
+      let currentItem
+      if (lineItem.should_merge) {
+        currentItem = draftOrder.items.find(line => {
+          if (line.should_merge && line.variant_id === lineItem.variant_id) {
+            return _.isEqual(line.metadata, lineItem.metadata)
+          }
+        })
+      }
+
+      // If content matches one of the line items currently in the cart we can
+      // simply update the quantity of the existing line item
+      if (currentItem) {
+        const newQuantity = currentItem.quantity + lineItem.quantity
+
+        // Confirm inventory
+        const hasInventory = await this.confirmInventory_(
+          lineItem.variant_id,
+          newQuantity
+        )
+
+        if (!hasInventory) {
+          throw new MedusaError(
+            MedusaError.Types.NOT_ALLOWED,
+            "Inventory doesn't cover the desired quantity"
+          )
+        }
+
+        await this.lineItemService_
+          .withTransaction(manager)
+          .update(currentItem.id, {
+            quantity: newQuantity,
+          })
+      } else {
+        // Confirm inventory
+        const hasInventory = await this.confirmInventory_(
+          lineItem.variant_id,
+          lineItem.quantity
+        )
+
+        if (!hasInventory) {
+          throw new MedusaError(
+            MedusaError.Types.NOT_ALLOWED,
+            "Inventory doesn't cover the desired quantity"
+          )
+        }
+
+        await this.lineItemService_.withTransaction(manager).create({
+          ...lineItem,
+          has_shipping: false,
+          cart_id: cartId,
+        })
+      }
+    })
+  }
+
+  /**
+   * Creates a draft order.
+   * @param {Object} data - data to create draft order from
+   * @return {Promise<DraftOrder>} the created draft order
+   */
+  async create(data) {
+    return this.atomicPhase_(async manager => {
+      const draftOrderRepo = manager.getCustomRepository(
+        this.draftOrderRepository_
+      )
+
+      if (!data.region_id) {
+        throw new MedusaError(
+          MedusaError.Types.INVALID_DATA,
+          `region_id is required to create a draft order`
+        )
+      }
+
+      const region = await this.regionService_
+        .withTransaction(manager)
+        .retrieve(data.region_id, {
+          relations: ["countries"],
+        })
+
+      if (!data.shipping_address && !data.shipping_address_id) {
+        throw new MedusaError(
+          MedusaError.Types.INVALID_DATA,
+          `Shipping addresss is required to create a draft order`
+        )
+      }
+
+      if (data.shipping_address && !data.shipping_address_id) {
+        data.shipping_address = await this.setAddress_(
+          region,
+          data.shipping_address
+        )
+      }
+
+      if (data.billing_address && !data.billing_address_id) {
+        data.billing_address = await this.setAddress_(
+          region,
+          data.billing_address
+        )
+      }
+
+      const { items, shipping_methods, ...rest } = data
+
+      const draftOrder = draftOrderRepo.create(rest)
+      const result = await draftOrderRepo.save(draftOrder)
+
+      await this.eventBus_
+        .withTransaction(manager)
+        .emit(DraftOrderService.Events.CREATED, {
+          id: result.id,
+        })
+
+      let shippingMethods = []
+      for (const method of shipping_methods) {
+        const m = await this.shippingOptionService_
+          .withTransaction(manager)
+          .createShippingMethod(method.option_id, method.data, {
+            draft_order_id: draftOrder.id,
+          })
+
+        shippingMethods.push(m)
+      }
+
+      for (const item of items) {
+        const line = await this.lineItemService_
+          .withTransaction(manager)
+          .generate(
+            item.variant_id,
+            cart.region_id,
+            item.quantity,
+            item.metadata
+          )
+
+        await this.lineItemService_
+          .withTransaction(manager)
+          .create({ draft_order_id: draftOrder.id, ...line })
+      }
+
+      return result
+    })
+  }
+}
+
+export default DraftOrderService
diff --git a/packages/medusa/src/services/shipping-option.js b/packages/medusa/src/services/shipping-option.js
index 3b4ccca804..6a2797f9e4 100644
--- a/packages/medusa/src/services/shipping-option.js
+++ b/packages/medusa/src/services/shipping-option.js
@@ -254,6 +254,10 @@ class ShippingOptionService extends BaseService {
         toCreate.claim_order_id = config.claim_order_id
       }
 
+      if (config.draft_order_id) {
+        toCreate.draft_order_id = config.draft_order_id
+      }
+
       const method = await methodRepo.create(toCreate)
 
       const created = await methodRepo.save(method)