Table Of Content
How To Start a Dropshipping Business in Australia
Australia’s ecommerce market is booming, making it a fantastic place for new dropshippers. However, finding the right products, sourcing reliable suppliers, and building a store that attracts your target customers takes some guidance. In this guide, we’ll cover how to start a dropshipping business in Australia and provide the tools you need to launch a profitable dropshipping business.
Let’s dive in and get you set up for success!
Does Dropshipping Make Sense in Australia?
Is Dropshipping Legal in Australia?
Yes, dropshipping is legal in Australia as long as you follow Australian consumer law and other relevant regulations. For a dropshipping business to operate smoothly, it's crucial to comply with the Competition and Consumer Act and Australian Consumer Law. Here’s what that entails:
- Accurate Product Descriptions: All product listings must be truthful, offering clear and accurate descriptions to help customers make informed choices.
- Prompt Order Fulfillment: Timely delivery is essential for compliance and customer satisfaction. You’re responsible for ensuring orders are fulfilled and delivered as promised.
- Effective Returns and Refunds: A clear, customer-friendly returns and refund policy is key to meeting consumer protection standards.
- Consumer Protection: Be transparent about pricing, shipping fees, and delivery times to avoid misleading customers.
Additional compliance measures include:
- Registering an ABN (Australian Business Number): This is necessary for tax purposes and adds legitimacy to your business, allowing you to access government support programs.
- Product Safety Standards: Products should meet Australian safety standards, particularly in regulated categories like electronics, beauty, or children’s products.
- Intellectual Property Rights: Respect for copyright, trademarks, and other intellectual property is vital to avoid legal issues.
How Much Money Do You Need to Start Dropshipping in Australia?
You can start a dropshipping business in Australia with as little as $10, but it’s generally more effective to have a budget of around $200. With a bit of initial investment, you can ensure better product quality control and test out different marketing approaches. Here’s a breakdown of how you can get started on either a tight budget or with a bit more cushion:
Starting with Minimal Investment (Around $10–$50):
- Product Research: Use free product research tools and trials to identify potential items without incurring high costs.
- Supplier Interaction: Instead of ordering product samples, request detailed photos and videos from the supplier. You can also schedule a call with them to understand product quality and reliability.
- Store Setup: Use Shopify’s introductory offer (e.g., $1 for three months) to create an affordable online store.
- Marketing: Promote your products using your social media channels or partner with influencers in exchange for free exposure.
- Manual Order Fulfillment: Skip paid automation tools by manually sending orders to your supplier and managing tracking and returns on your own.
Starting with an Ideal Budget (Around $200): This budget allows for a bit more flexibility. You can afford to order product samples, invest in paid advertising to test what works and explore tools that can streamline order management as your business grows.
While this budget covers the basics of dropshipping, remember that consulting with a business advisor or taking a course can add value to your business setup.
6 Easy Steps To Start a Dropshipping Business in Australia
Step 1 - Product Research for Australia
To launch a successful dropshipping business in Australia, finding a winning product is key. The products that work well in Australia might not perform as well in other countries due to unique consumer demands and environmental factors. For instance, a cockroach bait trap ranks as one of Amazon Australia’s best-sellers because Australia has a higher need for pest control than countries like the UK or parts of the US, where fewer cockroach species exist.
Here are essential factors to consider when researching products for the Australian market:
- Profit – Assess the potential profitability by comparing the product's selling price with its costs, including shipping and advertising. Each sale should yield a reasonable profit margin.
- Demand – Determine the level of demand for the product in Australia. Knowing how many units you can realistically sell is crucial.
- Competition – Analyze existing competition for the product. Consider how your product will stand out or offer something unique compared to others in the market.
- Availability and Restrictions – Check product availability and whether there are any restrictions on advertising or selling the product in Australia.
Step 2 - Find a Supplier to Fulfill Orders in Australia
Once you’ve identified a winning product, the next step is to find a reliable supplier. Here’s how to find and vet suppliers effectively:
Set your location in Australia and the currency in AUD
This will filter suppliers that ship to Australia and display prices in Australian dollars. Using the search bar, you can browse suppliers for your product and compare options based on terms, shipping methods, and pricing.
Contact Multiple Suppliers
Reach out to several suppliers to get product samples and clarify terms. Here are some key questions to ask:
- What is the product price?
- Do you provide shipping, and which carrier do you use?
- What’s the typical processing and shipping timeframe?
- Do you offer a return, refund, or warranty policy?
- Do you support dropshipping needs like removing branding or invoices, and do you integrate with automation tools?
Compare Responses
Evaluate each supplier's responses, product quality, and terms to find the best fit for your store. If minimizing costs is a priority, you can initially request images and videos instead of samples, but ordering samples is generally recommended to ensure product quality for your customers.
Step 3 - Choose The Right Platform
Your eCommerce platform serves as the foundation for your online store, so selecting one that aligns with your business goals is essential. With a variety of options available, finding the ideal platform can be overwhelming. The best platform for you depends on factors like budget, customization needs, SEO preferences, and dropshipping compatibility.
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The best platform overall |
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Best SEO performance |
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Platform tailored for dropshipping or POD |
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Cheapest option |
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Platform with the best resources |
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The most flexible and customizable platform |
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Easiest setup for an online store |
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Step 4 - Build & Design Your Online Store
With your website now live, it’s time to elevate its appearance and functionality to create a seamless and engaging experience for your customers. Here are two strategies to make your Shopify store visually appealing and impactful:
Embrace Themes
Major platforms such as WooCommerce, WordPress, Shopify, etc... all allow you to use unique Themes to design your store. In particular, Shopify also provides an unlimited collection of themes, both paid and free. Explore Shopify’s vast theme library, where you’ll find a diverse selection designed to enhance the look and feel of your store. Shopify’s own theme marketplace and Envato Market offer popular themes like Kalles, Gecko, Unsen, Ecomus, and more, each with unique design elements suited to different business needs. Selecting a well-crafted theme can streamline the design process, allowing you to customize it to match your brand identity and create a cohesive user experience across your site.
Read more:
Harness the Power of Third-Party Apps
Another option if you want to design your own website is to use third-party apps. For example, For added functionality and customization, Shopify’s extensive library of over 8,000 third-party apps can transform your store. One standout app is EComposer - Shopify Landing Page Builder, which offers a wide array of templates and design elements for creating professional web pages without coding. Known for its affordability and powerful design tools, EComposer enables you to craft visually stunning pages tailored to your brand, enhancing customer engagement and boosting conversions.
Read More: Top 12 Best Shopify Page Builders
By combining a captivating theme with the right apps, you can create an online store that not only attracts visitors but also converts them into loyal customers.
Step 5 - Market the Products
With your store now live, it’s time to bring in customers to make those first sales. If you don’t already have a social media following, running ads is a highly effective way to generate traffic quickly. To enhance your ads, you can use ad collection apps that help you gather inspiration by showing you ads as you browse. Analyzing successful ads and replicating effective elements can help refine your marketing approach.
There are also several free strategies to promote your products and drive sales:
- Influencer Marketing: Collaborate with influencers in your niche by offering free products in exchange for promotion on their social media pages. While you’ll cover the product cost, the exposure is free.
- Social Media Pages: Leverage your existing social media presence by showcasing your products to your followers, generating organic interest and engagement.
- Email Marketing: If you have an email list, create a tailored email sequence to introduce your products and encourage purchases, keeping customers engaged and informed about your latest offerings.
Step 6 - Analyze and Optimize
Congratulations on making your first sales! Now is the time to review your business performance and identify opportunities to boost traffic and conversion rates. A continuous optimization process across your business's key areas can drive growth:
- Product: Monitor return rates and customer feedback. High return rates or negative feedback indicate a quality issue that requires contacting your supplier or selecting a new one. Ensure product pages are detailed and informative to reduce misunderstandings and avoid unnecessary returns. Customer reviews can also reveal additional product uses, helping you expand your marketing approach to reach new audiences.
- Ads: Assess ad performance. Are your ads driving sufficient traffic? Consider revising ad content or testing ads on alternative platforms to broaden reach and effectiveness.
- Store: Analyze visitor behavior on your site. If traffic isn’t converting to sales, identify possible issues like checkout process friction, payment options, pricing, product pages, or page load times. Test adjustments and observe the effect on conversions to find what works best.
Consistent analysis and optimization of your products, ads, and store setup will help maximize sales and foster growth in your dropshipping business.
Tips for Starting a Dropshipping Store in Australia
Starting a dropshipping business in Australia requires a few strategic decisions to maximize your chances of success and avoid common pitfalls. Here are six essential tips to help you make the most of your Australian dropshipping journey:
Tip 1: Choose an eCommerce Platform Suitable for the Australian Market
Your eCommerce platform will serve as the foundation for your dropshipping store. It’s essential to pick one that offers the features you need, is user-friendly, and provides reliable customer support. Many platforms, like Shopify, are popular among Australian dropshippers due to their robust tools and integration options. When choosing a platform, consider factors like cost, ease of use, and compatibility with Australian payment options. A well-suited platform will simplify your store’s operations and help ensure smooth customer experiences.
For example, if you choose to sell on Shopify, you need to research Shopify pricing and plans that suit your needs. Understanding the difficulty of choosing the right plan for you, Shopify offers a Shopify $1/month plan for first-time customers. This means that for just $1, you will be able to use any Shopify plan for a month. After one month, you have the option to pay more to continue using Shopify or stop using it without any additional fees.
Tip 2: Find a Dropshipping Supplier Based in Australia
Working with Australian-based dropshipping suppliers can offer several advantages, such as faster shipping times, smoother returns, and access to locally sourced, high-quality products.
While international suppliers, like those in China, can be budget-friendly, Australian suppliers may give your business a competitive edge with better shipping speeds and customer service. While domestic suppliers might be slightly more expensive, the benefits, such as customer satisfaction and streamlined logistics, often outweigh the costs.
Tip 3: Offer Australia’s Most Popular Payment Methods
Payment preferences in Australia vary, so it’s crucial to provide a range of popular options to prevent abandoned carts. Australians favor credit and debit cards (48%), followed by digital wallets like PayPal, Amazon Pay, and Apple Pay (22%). Direct bank transfers, including POLi Payments, are also popular locally.
Setting up reliable payment gateways that support these options will cater to customer preferences, enhance security, and increase the likelihood of completed purchases.
Tip 4: Prepare for Startup Expenses
Dropshipping has lower startup costs than other business models, but a budget is still necessary to cover expenses like your domain, eCommerce platform, and marketing. Here’s a breakdown:
- Domain: A .com domain typically costs around $11/year, while a .com.au domain can enhance your brand’s credibility in Australia.
- eCommerce Platform: Shopify, for instance, costs around $39/month for the basic plan.
- Apps & Suppliers: Some apps are free, but others, like Spocket, may cost around $29/month.
- Marketing: Allocating $250–$1,000+ for ads can help build brand awareness and drive sales. Preparing for these costs upfront can make launching and scaling your store smoother.
Tip 5: Understand Australian Tax Requirements
Operating a dropshipping business in Australia requires knowledge of applicable taxes. For personal income, your dropshipping profits will be taxed similarly to a salary.
Additionally, once your store reaches an annual revenue of $75,000, you’ll need to register for and apply a 10% Goods and Services Tax (GST) to your sales. Remember, low-value goods (below $1,000) bought internationally are duty-free in Australia. Consulting with local tax professionals or authorities can clarify any questions you have about managing taxes.
Tip 6: Consider Getting an Australian Domain (.com.au)
Using a .com.au domain can signal to Australian customers that you’re a legitimate, local business. To register this domain, you’ll need an Australian Business Number (ABN), which you can obtain for free. This domain choice can help you build trust and communicate your commitment to the Australian market, ultimately contributing to brand loyalty.
5 Best Dropshipping Suppliers in Australia
1. Dropship Zone
Dropship Zone is a business-to-business (B2B) dropshipping platform dedicated to serving Australian dropshippers. Known for its fast handling times and broad product selection, Dropship Zone is considered one of the top choices for dropshipping within Australia.
Highlight Features:
- Warranty: Offers a 12-month warranty on all endorsed products.
- 24-Hour Handling: Orders are packed and shipped the next day, with delivery times of approximately three days once shipped.
- Payment Options: Accepts multiple payment methods, including PayPal, Mastercard, and VISA.
- Product Variety: Features a wide range of categories, including appliances, audio & video goods, electronics, and children’s products.
Website: Dropship Zone
2. AliDropship
AliDropship is a dropshipping plugin specifically designed for WooCommerce, making it ideal for integrating AliExpress products directly into your store. Its compatibility with Australian dropshipping allows for seamless product transfer from AliExpress, helping users streamline their operations.
Highlight Features
- Custom Stores: Offers a service where the AliDropship team can build a custom store for you.
- Hosting: Provides hosting options, eliminating the need for external hosting services like HostGator or SiteGround.
- Add-Ons: Sells additional software add-ons to enhance store functionality, including options for wish lists, product slideshows, and product bundling.
Website: AliDropship
3. Spocket
Spocket is a top-rated dropshipping tool for the Australian market, known for its advanced filtering options that allow users to find suppliers based in Australia. This tool provides an easy way to connect with local suppliers rather than just international ones who ship to Australia.
Highlight Features
- Support: 24/7 customer support is available via email.
- AliExpress Dropshipping: Allows product imports directly from AliExpress to your store.
- Image Search: Search the Spocket database using images in addition to keywords.
- Branded Invoicing: Add your logo to shipments and invoices, where available, for enhanced brand presence.
Website: Spocket
4. Modalyst
Modalyst is a premier dropshipping supplier for the fashion and clothing niche, making it an ideal choice for Australian stores focused on high-quality jewelry and apparel. This platform provides access to a vast inventory of trendy, well-sourced products.
Highlight Features:
- Global Sources: Products are sourced not only from China but also from the USA and other countries.
- Millions of Products: Offers an extensive directory with over 10 million dropshipping products.
- Real-Time Update: Automatic syncing of updates from suppliers to your store, ensuring accurate inventory and pricing.
Website: Modalyst
5. CJDropshipping
CJDropshipping is an ideal dropshipping supplier for Australia, especially if you’re selling on platforms like Etsy or eBay. The service offers seamless integration with these marketplaces, allowing you to post and manage your products easily.
Highlight Features:
- Product Sourcing: If a product isn’t available on CJ, you can submit a sourcing request. If approved, the product can be listed in your store.
- Sync to Platform: CJ integrates with multiple platforms such as eBay, TikTok, WooCommerce, Shopify, and Etsy, streamlining your sales process.
- Packaging Options: Customize labels or packaging, which CJ will apply when shipping the product to your customers.
Website: CJDropshipping
Frequently Asked Questions
1. Do I need an ABN to start dropshipping?
Yes, you’ll need an Australian Business Number (ABN) to start a dropshipping business in Australia. Registering for an ABN is a legal requirement for operating any business in the country, including dropshipping. This number is essential for tax purposes and establishes your business as a legitimate entity within Australia.
2. Is dropshipping worth it in Australia?
Yes, dropshipping can be highly profitable in Australia with the right products, suppliers, and strategy. With a significant increase in online shopping among Australians, there’s a growing market that offers excellent opportunities for entrepreneurs. By following dropshipping best practices, identifying a profitable niche, and building a unique brand, you can effectively stand out and capitalize on this expanding e-commerce trend.
3. Can I Dropship from Australia?
Yes, it’s legal to create a dropshipping business and operate from Australia. You can set up your business within Australian legal guidelines and start selling products to customers domestically and internationally.
4. Can I Dropship on Amazon in Australia?
Yes, you can dropship on Amazon in Australia, but there are strict policies to follow. Amazon quickly shuts down accounts that don’t comply with its dropshipping policies, so be sure to review them thoroughly. Additionally, Amazon strongly promotes its Fulfillment by Amazon (FBA) program, which requires sellers to store inventory in Amazon's fulfillment centers. As a dropshipper, competing with FBA can be challenging. For more control and flexibility, dropshipping through your own website is generally a better option.
5. Can I Use AliExpress to Dropship to Australia?
Yes, you can use AliExpress to dropship to Australia. AliExpress offers many suppliers based in Australia, as well as international suppliers that ship to Australian customers. By using AliExpress filters, you can easily find suppliers who offer shipping to Australia.
6. Is Dropshipping Still Profitable in Australia?
Yes! The profitability of dropshipping in Australia largely depends on the products you choose to sell rather than the country itself. To succeed, focus on high-demand items within the Australian market to ensure strong sales potential. Conducting market research to confirm product demand can make a significant difference in your dropshipping success.
Final Thoughts
As you set up and grow, take time to refine each step—from product research to marketing and optimization. Stay updated on industry trends, listen to customer feedback, and don’t shy away from experimenting with new strategies. With patience, persistence, and smart planning, your Australian dropshipping business can thrive in this competitive space.
Good luck, and here’s to your success in the world of dropshipping!
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