How to start a drop shipping business in Australia

 

 

For most of the people in Australia, 100% as it all boiled down to the costs of running and managing an e-commerce store in Australia. Other than the impact the USD has had on buying products from overseas, shipping has increased like crazy and so has the renting prices for storing products locally in warehouses. As an online seller, your profits margins are essential, and your ongoing running costs is what tends to creep up and reduce your revenue.

Over the past 3 years, it’s become increasingly difficult for Australians to setup, buy, store, and ship products directly to their customers. This is why drop shipping in Australia is gaining so much traction – and will be the way forward for most small and large online retailers. Why start a drop shipping business in Australia? While there is so much rave about starting an online drop shipping business in Australia, here are some of the essential reasons for you to get started selling online as a drop shipper: All e-commerce sales are expected to boost by 41% in 2018 in Australia Alone! By 2021, the entire e-commerce industry is expected to be worth a staggering $15.44 billion. And with increased incomes and better spending habits, the average Australian is now spending over $2100 AUD annually which is set to double by the end of 2018.

Many people don’t even consider starting an online business because of the beginning expenses and fulfillment hassles. But think if someone offered to pay your up-front inventory costs on thousands of items and manage your fulfillment operations. It’d be much simpler to get started, and you could run your business from all over the world. Sound too good to be true? It’s not if you know about drop shipping. This depends on what you want to sell. The simplest way to drop-ship is via eBay arbitrage. You get a Shopify store and simply find the products that you want to sell on eBay and add them to your Shopify store at a markup. When the customer purchases your product, you go to eBay and purchase the product and leave a note for the eBay seller not to include an invoice and use your customer’s shipping address. If the eBay seller is in the US it can take a few days for your customer to receive their product.

You can also drop-ship directly from China via Ali-express, but make sure you select ePacket as a shipping method, it’s the fastest way to ship to the US at a reasonable cost. Ground shipping from China can take 30 to 45 days and your customers will really be upset with that. If you want to sell T-shirts, then it’s much easier, all you need is your Shopify store and a US-based drop-ship T-shirt supplier. You upload the designs, sell them, they print in real time and ship to your customers and you keep the profits. There are several good US T-shirt suppliers on Shopify. Shopify + app integration. For consumer goods like shirts, mugs and phone cases there are a plethora of apps such as print, print aura, and the launch. The launch is the cheapest. Printful has the best customer service in my experience.

There are other apps like dhgate where you can browse products in China to host on your site. They will ship to you. Look into Alibaba. Try researching “Amazon white labeling” too. Honestly though what you should do, since you’re in Aussie, is come here to the USA and buy stuff here. Buy a ton of shoes on sale or something and then sell them to people in Australia. Drop shipping is a fulfillment model that is very commonly used in eCommerce. A drop shipping business allows you to order small lots of products from manufacturers or wholesaler drop shippers who then ship them directly to your customers. This model is convenient for small businesses that do not have sufficient resources to build large fulfillment warehouses where they can stock products to sell to their customers. Some of the major benefits of running a drop shipping business include:

  1. Lower Capital Requirements: You do not need to spend thousands of dollars to purchase large stocks of products since you only need to purchase a product when a customer places their order.
  2. Wider Product Selection: Since you do not tie up your available capital with specific products, you are able to offer your customers a wider selection of products.
  3. Location Independence: You can drop ship from virtually any location in the world as long as there is internet access. This is why drop shipping can is so lucrative. Australians can sell domestically using Australian dropship suppliers; sell domestically using international suppliers, or even sell internationally using international dropshipping suppliers.
  4. High Scalability: Scaling a drop shipping business is much easier compared to scaling a traditional retail business.

Requirements for Australian Dropshippers

The first, and often the hardest step when starting a drop shipping business in Australia or anywhere in the world for that matter is to identify a suitable dropship supplier. There are several ways you can go about this though:

  1. Search on Google: You can also land some good drop shipping prospects by searching on the Internet. You, however, have to dig deep because many manufacturers and wholesalers are not known to be particularly keen on SEO. You might have to dig through 5-10 pages of mostly irrelevant or even spammy listings before you come across what you need.
  2. Subscribe to a Directory: Whereas there are literally hundreds of drop shipping directories online, many are low-quality and will lead you on a wild goose chase. There are, however, a few reputable ones such as the SaleHoo Wholesaler and Dropshipper Directory. This is a good resource with a large searchable database of over 8,000 global pre-screened wholesale and drop shipping companies. The reason why this directory is the most popular amongst Australian online traders is that it actually features a good number of Australian companies and also because around 75% of the 8,000 suppliers are willing to work with international resellers.

Once you identify a company that you can work with, you will need to check their fees. Dropshippers typically charge two types of fees: Per Order Fee and Monthly Fees. A Per Order Fee covers the expense involved with packaging and shipping of the product. The fees are usually in the range of $2-$5, though they can be higher for very large items or items that are difficult to process. How much money you actually make from your drop shipping business will depend on your commitment and hard work. By picking a good niche and the right drop shipping approach, it is entirely possible to build a business that provides you with a six-figure income.

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