How to Start Dropshipping Australia [The Beginners’ Guide]

When it comes to where is the best place to start a dropshipping business, I bet you can name a lot. The United States, Canada, UK, Japan, and more. Among them, dropshipping Australia is a less competitive yet profitable niche. Talking specifically about the current situation of the eCommerce business in Australia, you’ll be surprised to read the facts. Australian market’s retail trade, including drop shipping Australia business, has $408 billion of contribution to the eCommerce market in 2021. Meanwhile, that Australia is good for dropshipping is also due to the growing number of online shoppers from Melbourne, Sydney, Brisbane, Perth, and other Australian cities.

Get interested in knowing more about dropshipping in Australia? This article says it all! First of all, we’ll clarify the basics and if it’s legal and profitable to dropship Australia. Next, you’ll learn how to start a dropshipping business in Australia. In the end, we’ll share a list of the top 7 Australian dropshipping companies to help you choose the best one for you.

drop shipping australia

What Is Dropshipping Australia

Drop shipping Australia means that a store doesn’t create or stock items. A third-party supplier generates and sells products to this store (usually a manufacturer or wholesaler) and then ships the orders directly to the customer. This basically means that dropshipping business model does not have any inventory requirements. Also, no product handling is required from the seller.

It’s great for people who have just entered into entrepreneurship. This is because it needs very small investments as you don’t have to open an actual store to dropship Australia. The dropshipper’s main role is to be the middleman in the whole business.

Here’s the process of how dropshipping works in Australia:

Step 1: Source products from dropshipping suppliers. Then, upload them to your store – you don’t need to pay in advance.

Step 2: When a customer purchases your product, pass the order to the dropshipping supplier and pay for the product and shipping fee.

Step 3: To fulfill the order, the supplier will check, pack, and ship the items to shoppers Australia-wide.

drop shipping australia

Is Dropshipping Legal in Australia

Yes, dropshipping Australia is legal and many people are doing it. Certainly, you should comply with the laws and regulations that the Australian government sets for eCommerce businesses. First, don’t sell drop shipping Australia banned products. Second, understand your rights and responsibilities under the Competition and Consumer Act (CCA). Additionally, make sure your store offers the consumer rights and guarantees formulated by the Australian government.

Often asked: Do I need an ABN for dropshipping in Australia?

The short answer is YES. To dropship Australia legally, it’s a necessity for you to register an Australian Business Number (ABN). On one hand, both dropshipping suppliers and buyers prefer trading with a store carrying an authentic business license in Australia. On the other hand, You can enjoy goods and services tax (GST) credits up to $18,200 annually.

Is Dropshipping Profitable in Australia

We know there are many businesses allowing you to make a lot of money. However, most of them have one thing in common. That is they require a lot of investment. Though, this is not the case with Australian dropshipping because you can easily start your business with no risk and little upfront cost. 

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To know more about why it’s worth starting a dropshipping business in Australia to make money, go through the reasons given below:

  • Small investment. You can actually grow your business by making just a small investment, not like those required in conventional businesses.
  • Sell any product. It does not require you to limit your sale to a specific dropshipping niche. You can sell approved products ranging from clothing and fashion to electronics.
  • No storage space is required. How about not paying loads of money for renting storage space for your items? Sounds great, right? This is why dropshipping Australia is great!
  • Free of packaging problems. Customers usually have issues with the packaging of materials in online shopping. But you would not have to deal with this anymore, as the dropshipping suppliers will take that headache. 
  • No shipping issues. When you dropship Australia, you don’t have any concerns with shipping the product to your customer. So you don’t have to solve customer complaints regarding late deliveries, return orders, etc.

How to Start Dropshipping in Australia

Now comes the question: How to dropship in Australia? Below are the exact steps you should take:

1. Set up an online store

When talking about how to start a dropshipping business in Australia, the very first step is to build your online store. Famous Australian eCommerce sites and platforms are Shopify, WooCommerce, Officeworks, Amazon, Kogan, and more. Next, don’t forget to register an ABN for your Australia dropship business.

2. Determine dropshipping products

Do market research for the niche you’re interested in and figure out the dropshipping products. Items that are good for dropshipping should be in high demand and less competitive, and feature a high-profit margin.

3. Pick drop shipping Australia suppliers

Here’s a checklist to sort out the most suitable dropship Australia supplier:

  • Does the supplier support dropshipping in Australia?
  • How are the reviews and ratings for the supplier in Trustpilot, Shopify app store, etc.?
  • How much does it charge for the dropshipping Australia products?
  • Is there a minimum order quantity limit?
  • Where is its warehouse based?
  • How long will it take to process and fulfill the Australia dropshipping order?
  • How does the dropshipping supplier handle returns and refunds?

Get ready to select a supplier? Jump here to take a look at our seven picks for the best dropshipping Australia companies.

4. Start selling products

The next step is to connect your store to the suppliers, search for its product catalog, and then upload the required items to sell on your online store.

5. Promote your products

Planning a marketing strategy is great for your business growth. For example, do advertising and email marketing. You can also take the help of SEO to increase customer traffic. In addition, you can promote products on social media involving Facebook, YouTube, Twitter, and so on.

drop shipping australia

Top 7 Dropshipping Suppliers Australia

You might ask, where is the best dropshipping platform in Australia? Actually, the answer can be varied on what you need. See this list of the top seven dropship suppliers in Australia to find your right match!

1. EPROLO (Free dropshipping platform)

EPROLO is a leading dropshipping supplier serving every country in the world, Australia included. Since 2015, more than 300,000 users have satisfied the dropshipping services it offers and it has achieved a high rating of 4.9/5 stars in Trustpilot. Furthermore, it also boasts a 5-star rating from 1150 reviews in the Shopify app store.

dropshipping in australia

Additionally, it is beginner-friendly as it offers automated dropshipping services. It enables you to connect to your store in Shopify, WooCommerce, eBay, and other platforms. Therefore, you can upload products and manage order fulfillment in just a few clicks.

Highlighted features include:

Diverse product offerings. In the EPROLO product directory, there are over one million items divided into 10 main categories and 107 subcategories. If you can’t find what you need, it also has an efficient sourcing team to help find them out. Best of all, you can buy in bulk or only purchase one item dropshipping to Australia.

Print on demand dropshipping. If you want to dropship Australia with your custom design, it also comes with a print on demand dropshipping service. The platform has inserted more than 400 white-label products like T-shirts, bags, hoodies, mugs, and much more.

Big inventory. This dropshipping company owns great inventory storage to fit in loads of products in China, the US, and the UK. This is a great benefit because it reduces your upfront fee and also guarantees a quick delivery time to Australian consumers.

Custom packaging service. If you want your special products to have custom packaging, then EPROLO is best for you. It comes with a branding project to help customize your packaging as per your demands.

2. Colourblocker

It is an Australian-based dropshipping supplier that has a wide range of products belonging to multiple niches. Their main aim is to provide you with thousands of life-helping products for drop shipping in Australia. The most common product niches are related to fashion, home, kitchen, and office items. They are always looking forward to modern and most trending things. 

Highlighted features include:

Free to access product list. It features a comprehensive product catalog. The best thing about working with Colourblocker is that you can easily join their program dropship to Australia without paying any fee.

Fast processing. Within 48 hours after the placement of the order, your order is picked and packed by the team. On average, the processing is completed within 12 hours.

No shipping cost. You don’t have to pay any shipping charges when buying products from Colourblocker. Australia Post eParcel is used for delivering the packages.

3. Syncee

If you don’t want to pay a heavy amount for adding just less than 25 products to your online Australian drop shipping business, then Syncee is the right fit for you. Aside from Australian dropshipping suppliers, it also incorporates numerous manufacturers from other countries like India, the UK, etc.

Highlighted features include:

Easy to find suppliers. You just need to fill in the location from where you want to dropship. For instance, if you want to start a dropshipping business in Australia, you just need to enter Australia and Syncee will then filter the search results as per your demands. 

In-time customer service. One bonus to working with Syncee is that you can get answers to the most important questions with the help of the built-in chat tool. For example, how to do drop shipping in Australia? Are there Australia-based storage spaces to keep the items?

Auto order fulfillment. Syncee’s Shopify app has an auto-order feature. When someone buys something from your store, the app forwards new orders to your supplier automatically.

4. CJdropshipping

This is one of the best dropshipping suppliers because they have suppliers with warehouses in various countries, including Australia. It has a sourcing service to help you find the desired product in the catalog. For particular products, you can also file in sourcing request and let their team locate it for you.

drop shipping australia

Highlighted features include:

Free to start. Being a CJdropshipping partner comes with various benefits, the most significant out of which is free setup. Also, you don’t have to pay any monthly charges or storage fees to start dropshipping business Australia.

Shopify integration. They also have launched the CJdropshipping Shopify app for accessing updated features such as product listing automated order fulfillment.

5. Ozdingo

Talking about the largest Australian online marketplaces, Ozdingo is the best one. There are various high-quality products to sell in Australia after collecting them from different Australian suppliers. Ozdingo also has a dropshipping program for further facilitation of the customers.

Highlighted features include:

Good reviews. Ozdingo is also one of the best public retailers that have a very good rate of positive customer feedback. They have an average rating of 4.9/5 stars and more than 5000 reviews.

Best shipping. Along with fast order processing, Ozdingo also facilitates its customers with free shipping benefits. All orders are shipped from Australia on the next business day without any shipping charges.

Protected returns. You don’t have to worry about product returns when shopping from Ozdingo. Within 30 days, you get back your money on returns without any trouble.

6. Dropshipzone

Talking about the top Australian dropshipping companies and wholesale platforms, Dropshipzone is the best. Apart from drop shipping clothing Australia, you can also sell beauty products, furniture, shoes, bags, and much more. Plus, some famous brands it partners with are Everfit, Artiss, Gardeon, Giselle Bedding, and Giantz.

Highlighted features include:

Authentic products. Dropshipzone has products from top brands and never compromises on the quality of their products. This is why customers always love shopping from there. You can also find a great collection of high-quality Australian-based products.

Fast shipping. Shipping time varies with the distance of delivery locations. So, long-distance deliveries might take a little longer but overall Dropshipzone is famous for its fast shipping services.

7. DearJane Medical

If your business is related to medical or hospital products, DearJane Medical is the right fit for you. They have a great variety of items available at the most affordable costs.

dropshipping australia.

Highlighted features include:

Versatility. DearJane is versatile in its product range. It includes products from different medical areas, including rehabilitation, dementia, recovery, and disability items.

Fast delivery. This is another benefit of choosing DearJane as your dropshipping supplier. They have the fastest delivery services to fulfill your medical needs as soon as possible.

Affordable prices. Buying medical products is no more expensive now because DearJane has got your back. The best thing about them is their affordability. You still get a lot of discounts even when not ordering in the wholesale quantity.

Often Asked Questions on Drop Shipping Australia

How do I start dropshipping in Australia?

We’ve clarified the process in detail above. Check here to check it out.

Is dropshipping successful in Australia?

Yes, it is. As said earlier, the revenue of the Australian eCommerce market is over $408 billion in 2021. And the share of drop shipping businesses takes up to 60%.

How much can you make from dropshipping in Australia?

It depends. If you have found the right dropshipping niche and do the promotion correctly, you’re more likely to earn more than $20,000 each month on average.

Do I have to pay taxes on dropshipping in Australia?

There are mainly two types of taxes you need to pay for Australian dropshipping. One is income tax, while another is a tax added to sales of goods. If you have registered an ABN for your Australia dropshipping business store, you can apply for goods and services tax (GST) credits.