Dropshipping: How to Start in Australia

If you want to start a lucrative retail business in Australia with low capital and low risk, a dropshipping business is an excellent option. You don’t have to invest in any inventory and you can grow a successful business. All you need to do is focus on promoting your store and generating sales. From 2019 to 2025, the expected Compound Annual Growth Rate for dropshipping businesses is 28.8%.

Dropshipping is an e-commerce business model where an online store doesn’t keep any products in stock. Upon receiving an order, a store owner contacts the supplier who does the shipping to the customer.

How to Start Your Dropshipping Business in Australia

Here are the steps in starting your dropshipping business based in Australia.

Register Your Business in Australia

You need an 11-digit Australian Business Number (ABN) as an online business. You can get this from the official website of the Australian Business Register. Remember that you must comply with the Australian Consumer Law. That means ensuring that products reach consumers in an acceptable state and you have to refund consumers if not. You must also comply with the Competition and Consumer Act which protects the rights of consumers with disabilities.

You must pay income tax on your dropshipping business income. Also, once your store generates sales of at least $75,000, you must pay GST. Therefore, you must add 10% to the price of every product to account for this.

Research the Best Dropshipping Suppliers in Australia

Find the most reliable supplier for dropshipping with a wide range of high-quality products at competitive prices. This is so that you only have to work with one supplier, simplifying your process. Usually, you can get a good deal with a dropship wholesaler that does not require a minimum order.

Ensure that your supplier can ship products quickly and at a reasonable shipping cost. Look for a supplier based in Australia so that you can avoid high international shipping costs.

Choose the Right Products

The next step is to choose the right products to sell in your store. Find products with high demand and low competition using a market research tool like Google Trends or Jungle Scout. These tools will help you assess whether a product is popular and profitable enough to sell in your store.

You should also consider the price of your products. Ideally, dropshipping items should be priced around $20-30. If you sell higher-priced goods, consider whether customers will still be willing to purchase these when they add the cost of shipping as well.

Set Up Your Online Store

Set up your store in an e-commerce platform that is popular and user-friendly for dropshipping businesses. Usually, once you sign up for a plan, you can choose from a variety of themes to design your store and start adding products.

Purchase a domain name through the shopping platform or a third-party provider. Your domain name is how customers will find your online store, so it needs to be memorable and relevant to your brand.

Set up a payment processor so customers can pay for the products they order from your store. You can use a dropshipping app to automate the order process and make it easier for you to manage your business.

Promote Your Store

Once you have established a solid foundation for your store with your supplier and products, it’s time to focus on marketing your business so you can start generating sales.

Drive traffic to your store through SEO. Invest in paid advertising on platforms like Google Ads and Facebook Ads to reach potential customers. Create social media accounts for your business and post engaging content regularly. Ensure that you engage with customers by replying to queries and comments promptly. Additionally, consider running a blog or email marketing campaign to attract more customers to your store.

Start Your Dropshipping Business in Australia Now

By following these steps, you can start your own dropshipping business in Australia easily and with low risk. Remember to choose the right supplier, products, and e-commerce platform to set your store up for success. And finally, focus on marketing your business so you can start making sales and generating income. With a bit of effort, you can grow a successful and profitable business.

You can check out Dropship Only, a premier wholesale dropship supplier in Australia. Explore what to find on DropShip Only.