How to Start Shopify Dropshipping Australia
Last Updated | January 17, 2024
Table of Contents
Overview: Shopify Dropshipping Australia
Learning the dropshipping business is complicated, irrespective of the venture. Anyhow, dropshipping is the first yet most reliable step into the entrepreneurial world. To illustrate, you can sell the products without buying the inventory and there is no need for upfront payments. Still, if you are serious about creating a venture in Australia, you can build a sustainable income source (yes, long-term!).
So, if you are anticipating dropshipping in Australia, we have all the facts and steps that you need to know. According to stats, the Australian population has exceeded the benchmark of 25 million which makes it an enticing market for online entrepreneurs. That being said, read through this article to save yourself from headaches and time down the dropshipping road in Australia!
What Is Dropshipping In Australia?
Australia or not, dropshipping is the phenomenon of an online selling business model that works without any inventory. To illustrate, whenever you have to sell something to a customer, you can buy the item from third-party suppliers at wholesale costs. The supplier will directly ship the bought product to the customers on your behalf.
That being said, you won’t have to handle or store the inventory or products. In particular, dropshipping is all about selling suppliers’ products and earning profits or shares. Additionally, you have to forward the order information and customers’ contact information to the manufacturer or wholesaler and they will send the order to your customer.
How Do I Start Dropshipping in Australia?
When it comes down to starting the dropshipping business in Australia, there are certain steps to follow, such as;
- Be legit –when you are operating an online business as a full-time career, you have to register your online store for ABN. In addition, ABN is often asked by the dropshipping suppliers if you want to do business with them (yes, it’s a prerequisite)
- Choosing the products – once you filed and received the ABN, you have to identify the in-demand products that can be sold with profits
- Look for suppliers– now that you have chosen the right products, you have to connect with reliable and legitimate dropshipping suppliers who are capacitated to manufacture, pack, store, and ship the products from your end
- Setting up the store– the next step is to decide where you want to sell the products online. This is because you can sell the products online by setting up a personal website or choose an online marketplace for listing the available products. Your own store will surely give you better control over online presence management and branding. On the contrary, the online marketplaces help you reach a wide audience base (the platforms are full of potential customers), so you choose wisely. You can also opt for Folio3 Shopify wholesale app develop Australia to maximize your online presence and enhance revenue streams.
- Sell – this is the final step where you can start listing the products on the online store to sell. We do suggest that you make an in-depth marketing plan which shares information about social media posts, advertising, finances, and website information. The quick access to this information will streamline the customer experience and help you expand the business
When it comes down to Shopify Dropshipping stores, the key is to choose the right products to sell. Sure, identifying high-quality products with a promising profit margin can be tricky but you have to do your research. First of all, you need to research the in-demand and trending products to gain a proper idea about high-demand products.
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Secondly, when you are trying to choose the right products, you have to find the niche (only choose the niche that you are passionate about and have ample information about). In addition, the niche must be in demand, and if there is saturated competition, focus on the market sectors. Last but not least, you have to consider the pricing.
This is because you have to find the medium between products that aren’t only easy to sell at high profits but are easy to market as well. While calculating the costs, you must consider the shipping and packing costs. For instance, if you want to sell products in Australia through dropshipping, the high-demand products include phone cases, phone accessories, skincare products, clothing, and pet supplies.
Why Is Australia Good for Dropshipping?
Sure, starting a dropshipping business in Australia sounds exciting but there are some valid reasons to choose Australia for dropshipping. For instance, by the end of the year 2021, the eCommerce industry of Australia is likely to reach $15.44 billion. With improved spending tactics and better incomes, the average spending of an Australian person is AUD 2100 and it’s likely to increase by triple folds.
Secondly, the costs of running an online business or an eCommerce store in Australia have been reduced by 100%, leading to increased profits. It allows dropshipping company owners to build large-scale businesses without actually investing in inventory. The best thing about starting a dropshipping business in Australia is low capital requirements since there is no need to buy the products beforehand.
Moreover, there is an incredible range of products available. As for location, Australian dropshipping businesses are independent in terms of locations (they can sell domestically and internationally through suitable suppliers). Last but not least, there is higher scalability. As for store development, you can always get in touch with Folio3 Shopify ecommerce website development Australia to get started with a professionally designed and highly functional store.
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Is Dropshipping Legal in Australia?
The short answer is yes, the dropshipping businesses are legal in Australia. However, you can only sell the products that are legal to be sold in Australia. In addition, the dropshipping must comply with the Australian Consumer Law and Competition & Consumer Act. For the most part, there is nothing illegal as long as you are complying with the rules and regulations.
On top of everything, you have to ensure that you don’t accept the payments for the products that you won’t be supplying. In addition, there shouldn’t any deceptive and/or misleading statements about the refunds and consumer rights. Now that you know that dropshipping is legal, we suggest that you choose Folio3 Shopify eCommerce website design services in Australia to get a head start with the perfect store.
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Is Dropshipping Profitable in Australia?
Dropshipping is a popular business form and it’s being used as a preferred business model among online retailers. So, dropshipping is highly profitable in Australia since the startup costs are minimal and there is hardly any risk. On the other hand, there has been a perception that dropshipping is dead in Australia only because the number of closed dropshipping stores keeps rising.
For the most part, the dropshipping businesses fail because they aren’t interested enough or don’t have a well-made business plan. So, it’s pretty evident that when the dropshipping business model is implemented correctly, the business will be profitable.
Some elements to ensure a competitive edge include high-quality products, strategic advertising and marketing, promising customer service, and proper buyer assurance. When it comes down to profitability, reducing the costs is one way of increasing the profit rate, so why not contact Folio3 Shopify eCommerce integration company Australia for low-cost yet reliable store development.
Shopify Dropshipping Australia – How to Get Faster Shipping from AliExpress?
When it comes down to AliExpress, they are notorious for long shopping times but there are ways of reducing the shipping time and ensure quick shipping. With this section, we have outlined some tips to help you get quick shipping from AliExpress, such as;
Filtering The Suppliers
The first tip is to choose the suppliers that have local warehouses. This is because when you place the order on behalf of your customers, the product will be shipped to them within the shortest time span. To illustrate, this tip will help reduce the shipping time by four days. In addition, you must identify the fake suppliers.
Finding the VIP list for the products is an apt way of reducing the shipping time on AliExpress. The VIP listings are actually the product pages available on AliExpress that are for dropshippers. This will help you achieve quick shipping because they will prioritize your orders, hence short processing times. In addition, they might even use special shipping methods for you.
Test & Choose The Right Shipping Method
Some suppliers on AliExpress do offer a variety of shipping methods. The majority of shipping methods are outlined with estimated delivery times but tend to be inaccurate. We suggest that you check out all the shipping methods and check the estimated delivery time. To name a few, we suggest that you use ePacket and AliExpress’s Standard Shipping for faster delivery.
Testing The Suppliers for Quick Processing Time
Sure, you have tested a variety of shipping methods but you need to test the suppliers as well because it helps identify the one with the quickest processing times. That being said, you must choose the supplier with the fastest processing time because it helps improve the shipping time.
What Is the Real Cost to Start Dropshipping In Australia?
Sure, you don’t need to hold the inventories of your own with drop shipping but there are some other costs. This is because you may start the dropshipping business with zero budget but you will need to spend some money to lift the store and get started. Before we talk about the “real” costs, let us tell you how you can minimize the costs. First of all, you can extend the Shopify trial (it’s possible only once, by the way).
When you have managed to extend the Shopify trial period, you must be prepared to make the most out of this extended time. On the other hand, we suggest that you opt for YouTube or other free learning platforms to learn about dropshipping rather than investing in the paid courses. Lastly, you can minimize the costs by opting for free advertisement (SEO is a great way to do so).
Coming back to the point, the drop shipping costs are pretty much minimal. For instance, if you opt for Shopify store, it costs $29 while having a competitive domain name will cost $15. Secondly, sampling will cost $100 but additional functionalities like bulk pricing apps and pop-ups will be around $15. As far as the marketing costs are concerned, Facebook, Google, and Instagram costs will be $100.
How Shopify Dropshipping Works in Australia?
Online selling doesn’t provide any guarantee of income but Shopify dropshipping is pretty easy in Australia. This is because Shopify has amazing features. First of all, Shopify stores are extremely easy to set up as you don’t need to use source codes. Shopify does offer free and paid themes which helps create the best GUI for your customers.
How to Do Dropshipping in The USA from Australia Using The Shopify Website?
When it comes down to “how,” it really depends on what you wish on selling. The simplest dropshipping method is using eBay arbitrage because it provides access to the Shopify stores. Consequently, you can find and choose the products that you want to sell and add them to the Shopify store (add them to the mark-up).
That being said, if you want to do dropshipping in the USA from Australia through the Shopify website, you have to have a Shopify store along with the US-based supplier.
Amazon Dropshipping Australia Vs. Shopify Dropshipping Australia: Which One Is Best?
Amazon should be your choice for dropshipping since it has a wide customer base. It has strict rules and regulations but you can drop ship anything you want. With Amazon, you need to identify yourself as a seller. However, with Amazon, you will need to buy the inventory upfront and send it to FBA. As far as ease is concerned, dropshipping with Amazon is easiest since you don’t have to create a store. In case you are wondering about profitability, Amazon is profitable but you must follow the right techniques.
It’s safe to say that Shopify is the biggest eCommerce platform out there for dropshipping. However, you have to create a store and you will need to market the store for attracting buyers. The best thing about Shopify is that you don’t need an inventory but there is a constant need for the advertisement since you have to build a brand on your own. Keep in mind that dropshipping through Shopify can be risky since you have to design the store, learning analytics, and market the store.
FAQ About Shopify Dropshipping Australia
How to start Australian-made product dropshipping using the Shopify e-commerce platform?
In case you want to sell Australian-made products through Shopify, you must choose the right suppliers that are creating high-end products. Once you find the suppliers, contact them and make an agreement. As a result, you can advertise the products on your Shopify store and let the suppliers fulfill the order when you send them the customer information.
What is dropshipping Australia tax?
There are two types of taxes in Australia, known as income tax and sales tax. According to the Australian tax system, you need to pay 19% tax if your earnings range from $18,201 to $37,000. However, if your earnings are less than $18,201, you don’t have to pay any tax.
What is Australia warehouse dropshipping?
Dropshipping is pretty common in the online retail world. The warehouse dropshipping is about sending the ordered products from the warehouse to the customers.
Is dropshipping banned in Australia?
No, dropshipping is not banned in Australia as long as you are complying with the Australian Consumer Law and Competition & Consumer act. However, back in 2018, Australia did imply a 10% GST tax on imports for optimizing the economy. It was perceived as banning dropshipping but it’s not the case. So, dropshipping in Australia is completely legal!