How to Start a Dropshipping Business In Australia

Dropshipping is one of the most popular online business models in Australia, allowing entrepreneurs to sell products without handling inventory or shipping. It’s a low-risk, high-reward model that’s attracting many beginners looking to start an eCommerce business.

If you’re wondering how to start a dropshipping business in Australia, this guide covers everything you need to know, including niche selection, supplier sourcing, store setup, marketing, and scaling strategies.

This guide covers:

• Benefits of starting a dropshipping business in Australia
• Step-by-step process to launch and grow your dropshipping business in Australia.
• Legal requirements – Is dropshipping legal in Australia? How to register an ABN & handle GST.
• Other tactics that help you win profits by dropshipping in Australia

If you’re ready to start a profitable dropshipping business in Australia, let’s dive in!

What is Dropshipping and How Does it Work?

Dropshipping is an eCommerce business model where you sell products online without holding inventory. Instead, when a customer places an order, the supplier ships the product directly to them. This means you never have to worry about stocking, packaging, or shipping products yourself.

Source: Oberlo 

Compared to traditional retail, dropshipping eliminates the risks of unsold stock and high overhead costs. Instead, you focus on marketing, sales, and customer service.

How does Dropshipping Work in Australia?

Dropshipping in Australia follows the same model as anywhere else—you sell products without holding inventory, and a supplier ships them directly to customers. But, there are key differences Australian entrepreneurs need to consider.

1. You choose a product niche and set up an online store.
2. A customer places an order on your website.
3. The order details are forwarded to your supplier.
4. The supplier ships the product directly to the customer.
5. You earn the profit margin between the supplier cost and the selling price.
   

What Makes Australian Dropshipping Different?

While the dropshipping model remains the same, running a business in Australia comes with unique considerations:

• Business & Tax Compliance – You need to register for an ABN, and if you earn over AUD 75,000, you will be charged GST (10%).
• Shipping Challenges – Ordering from international suppliers can mean long shipping times. Working with Australian-based suppliers can improve delivery speed.
  
• Local vs. Global Sales – Selling within Australia builds trust and ensures faster fulfillment while expanding globally increases market reach.
• Payment Methods – Popular local options like Afterpay and ZipPay make it easier for Australian customers to make purchases.

Understanding these factors will help you navigate the Australian dropshipping landscape more effectively. We'll cover each in detail in the following.

Is Dropshipping Legal in Australia? 

Yes, dropshipping is allowed in Australia. However, before you start, it is important to know and follow certain legal requirements.

First, you'll need to register your business with an Australian Business Number (ABN), which is essential for tax purposes and legitimacy. If your revenue exceeds AUD 75,000 per year, you'll also need to register for the Goods and Services Tax (GST).

An example of ABN and GST registration

Source: Vatstack

Additionally, all dropshipping businesses must comply with Australian Consumer Law (ACL), which outlines fair trading practices, refunds, and warranties. Ensuring your suppliers provide quality products and accurate descriptions is crucial to avoid legal issues down the line.

• Fair representation: Ensure all product descriptions are accurate and truthful.
• Refund rights: Consumers have the right to a refund, repair, or replacement for faulty products not as described or unfit for their purpose.
• Warranties: Comply with mandatory consumer guarantees on product quality and functionality.

Ignoring these laws can result in hefty fines and damage to your business reputation, undermining customer trust.

For detailed information about compliance with these laws, you can visit the Australian Competition and Consumer Commission (ACCC) website, which offers comprehensive guidelines and resources.

Having clear terms and conditions on your website is also a good practice to set customer expectations and protect your business.

Pros and Cons of Dropshipping in Australia 

Like any business model, dropshipping has its advantages and challenges.

Pros:

• Low startup costs: No need to invest in inventory upfront.
• Flexibility: Run your business from anywhere with an internet connection.
• Wide product selection: Easily switch and test different products without risk.
  

Cons:

• High competition: Many sellers enter popular niches, making it harder to stand out.
• Reliance on suppliers: Your business depends on their reliability and shipping speed.
  
• Shipping times: Depending on the supplier’s location, shipping can take longer.
  

The key to success is choosing the right products, finding reliable suppliers, and using a platform like Shopify to create a seamless shopping experience.

Guide on How to Start a Dropshipping Business in Australia

Find Dropshipping Business Ideas for Beginners in 2025

Choosing the right niche is one of the most critical steps in starting your dropshipping business. With so many products available, it can be overwhelming to decide what to sell.

To make it easier, follow these steps:

Step 1: Focus on Demand and Trends

The most successful dropshipping businesses align their product offerings with what people are already searching for. Tools like Google Trends help you track interest in specific product categories and discover trending products for dropshipping.

• Eco-conscious products: Look for search terms like "reusable straws" or "biodegradable packaging," which have shown consistent growth.

Source: Google Trends

• Health and wellness: Items like resistance bands and digital health trackers are increasingly popular as consumers prioritize fitness and longevity. 

Source: Google Trends

💡 Tips: Make sure the products you select align with trends, not just in general, but in your target market’s region as well. You want to capture demand both globally and locally. Also, ensure your chosen niche has potential beyond the immediate hype. For example, sustainability and personalization are long-term consumer priorities, making them safer than short-lived fads.

Step 2: Avoid Over-Saturated Markets

It’s tempting to dive into popular niches, but high competition can make it challenging to stand out. Instead, find sub-niches or underserved categories within larger markets:

Source: Blog Marketing Academy

• Analyze competition: Using tools like Ahrefs, SEMrush, or Google Trends to see how competitive certain keywords are. Instead of going after the overly saturated “tech gadgets” category, look for eco-friendly tech accessories like solar-powered chargers or sustainable phone cases.    
• Look for sub-categories: In the health and wellness space, rather than competing with general fitness products, consider niches like yoga for beginners or low-impact fitness gear.
• Research regional preferences: Adapt your niche to your target audience’s local preferences. What sells well in North America might not have the same appeal in Asia or Europe. Use tools like Google Trends to understand the demand for your niche in specific regions.

💡 Tip: Use market data and competition analysis to discover products that have growing demand but relatively lower competition.

Step 3: Validate Profit Margins

Profit margins are critical to your dropshipping business. Without proper margins, it’s hard to scale and generate profit. Ensure that your chosen niche can offer you enough room to cover all your costs while still leaving you with a comfortable profit.

• Check supplier pricing and shipping costs: Look for suppliers that offer reasonable prices and reliable shipping options. Use platforms like AliExpress or Oberlo to compare supplier prices.
  
• Factor in advertising costs: Calculate how much you’ll need to spend on ads to drive traffic to your store. A great tool for this is Facebook Ads Manager, where you can experiment with small budgets to get an idea of ad costs.
  
• Calculate selling prices: After considering supplier costs, shipping, and advertising, ensure that your selling price allows for a healthy profit margin. Generally, aim for a markup of at least 2x–3x the cost of your product.
  

💡 Tip: Use profit calculators to help you determine your selling price and margin before committing to a product.

Step 4: Stay Updated with Emerging Trends

The eCommerce market is evolving rapidly. Regularly read industry blogs like Oberlo and Shopify, and monitor social media platforms like TikTok, Instagram, and Pinterest for real-time insights into consumer behavior. This continuous learning will help you adapt to changes and spot new opportunities.

💡 Tips:

• Align products with trends: Make sure the products you select not only align with global trends but also fit the specific needs of your target market’s region.
• Start small and scale gradually: Begin with a niche that has a focused audience, and as you establish a customer base, consider expanding into related products.
  
• Evaluate long-term potential: Opt for products and niches with enduring appeal to ensure the sustainability of your business model.
  

Remember, staying proactive with trend monitoring allows you to capitalize on new opportunities and ensure your product offerings remain relevant and appealing to your audience.

Choose the Right Platform for New Dropshippers

Selecting the perfect platform is crucial for building a successful dropshipping business in Australia. While marketplaces like Amazon and eBay offer extensive audiences and a variety of selling options, Shopify stands out for those looking to establish a customized online store. 

Why Shopify is Ideal for Australian Dropshippers

Shopify is designed to simplify the process of launching and managing an online store. Here’s why it’s the preferred choice for dropshippers in Australia:

• Easy Store Setup: Shopify’s intuitive interface and pre-built themes allow you to create a professional-looking store without any coding knowledge. 
  
• Secure Payment Gateways: Accept payments from Australian customers with options like Shopify Payments, PayPal, Afterpay, and Stripe, ensuring a smooth checkout experience with multi-currency support.
  
• Local and Global Reach: Shopify allows you to sell within Australia and expand to international markets effortlessly, with built-in features to support global shipping and currency conversion.
  
• Mobile-Optimized Storefronts: With mobile commerce on the rise, Shopify ensures your store is fully responsive across devices, providing a seamless shopping experience for customers.
  
• And many more.

Source: Icecube Digital

Shopify is a great platform for building your online store. However, Amazon and eBay are also important in the eCommerce world. The table below will help you compare these platforms and choose the right ones for you.

Shopify stands out as the optimal choice for entrepreneurs who value freedom and scalability. With its user-friendly design, comprehensive marketing tools, and extensive app integrations, Shopify empowers you to create a unique brand and cater to customers globally. Embrace the platform that adapts to your business needs and sets you up for long-term success. Start your Shopify store today and take the first step towards building a thriving online business.

Special Shopify Offer for Beginners

If you're looking to get started with minimal investment, Shopify is currently offering an unbeatable deal:

• 3-Day Free Trial: Explore Shopify risk-free and see if it's the right fit for your business.
  
• $1/month for 3 months: Keep your store running at a minimal cost while you focus on building and marketing your business.

👉 Get started today with Shopify's exclusive offer and turn your dropshipping idea into reality!

By choosing Shopify, you’re setting yourself up for success with a reliable, scalable, and feature-rich platform that makes running a dropshipping business in Australia easier than ever.

Find Reliable Australian Dropshipping Suppliers

Choosing the right Australian dropshipping suppliers is crucial for ensuring fast shipping, reliable products, and a great customer experience. Working with local suppliers helps you reduce delivery times, improve customer trust, and simplify returns—key factors for thriving in the competitive Australian market.

Why Choose Australian Suppliers?

• Faster Shipping: Shorter delivery times mean happier customers.
  
• Easier Returns: Local suppliers make exchanges and refunds smoother.
  
• Trust & Credibility: Customers prefer buying from local businesses.
  
• Regulatory Compliance: Australian suppliers are familiar with tax and consumer laws.

💡 Pro Tip: Always vet suppliers by checking reviews, fulfillment speed, and communication responsiveness to avoid unexpected issues.

FoxEcom provides access to top-tier dropshipping suppliers, ensuring high-quality products and efficient fulfillment services for your Shopify store.

By partnering with reliable suppliers, you can streamline operations and focus on scaling your dropshipping business in Australia with confidence.

Get started with our trusted partners: 

• Dropshipman: Easy Dropshipping - 50% OFF for Pro and Plus plan
  
• Spocket ‑ US & EU Dropshipping - 25% OFF of 3 Months
  
• HyperSKU ‑ PRO Dropshipping - VIP price for mentioning FoxEcom
  

Build and Optimize Your Dropshipping Store

Your store’s design and functionality play a crucial role in converting visitors into paying customers. A well-structured and optimized Shopify store enhances trust, improves user experience, and boosts sales.

1. Choosing a High-Converting Shopify Theme

Selecting the right theme can make or break your store’s performance. You can find tons of themes in the Shopify themes store at different prices, even free ones. You can choose a theme that is most suitable for your store. But for Australian dropshippers, we recommend the Minimog theme! 

Source: Minimog

The Minimog theme is an excellent choice for Australian dropshippers because of its:

• Fast loading speeds: Keep visitors engaged and reduce bounce rates.
  
• Customizable layouts: Tailor the store’s look to match your brand.
  
• Conversion-focused features: Pre-built sections designed to drive sales.
  
• Mobile-friendly design: Most shoppers browse on mobile, and Minimog can ensure that the store looks great across all devices
  

2. Essential Pages to Include

Yes, the homepage and product pages mean a lot when it comes to an eCommerce website. But remember your niche, building trust, which requires transparency. Make sure your store also includes:

• About Us: Share your brand’s story and mission.
  
• Shipping Policy: Outline delivery timelines, especially for Australian customers.
  
• Refund Policy: Clearly state return conditions to avoid disputes.

3. Boosting Conversions with Product Descriptions and Images

Your product pages are where buying decisions happen. To make them more effective:

Optimize your product images:

• Resolution: Use high-resolution images (1000 x 1000 pixels minimum) to enable zoom and enhance detail visibility.
  
• Multiple Views: Display products from various angles and include lifestyle images to help customers visualize use.
  
• Image Size: Keep files under 2MB to ensure quick loading times without sacrificing quality.

Craft effective product descriptions

• Length: Aim for 150-300 words to balance detail with brevity.
  
• Structure: Utilize bullet points for features; include primary keywords in the title and early in the description.
  
• SEO: Incorporate relevant secondary and LSI keywords to boost search engine visibility.
  

A great product page uses clear, detailed images and brief, clear descriptions that showcase the main features and benefits, making it easy to find in searches and attractive to buyers.

The leading drag-and-drop page builder Foxify makes it easy to design product pages that stand out and convert. With Foxify, you can:

• Customize layouts without coding.
  
• Add high-impact visuals, trust badges, and testimonials.
  
• Create engaging call-to-action buttons to drive more purchases.

Marketing Your Dropshipping Business in Australia

Once your store is set up, it’s time to attract customers. A solid marketing strategy will help you stand out in the competitive Australian market.

Social Media Marketing

Social media platforms are a goldmine for reaching your target audience. In Australia, platforms like Instagram, Reddit, YouTube, and Facebook are widely used, making them perfect platforms for social media marketing strategies showcasing your products and engaging with potential buyers.

How to leverage social media effectively:

• Instagram: Use high-quality product images and Instagram reels about lifestyle content to attract shoppers. For example, an eco-friendly product store could share posts highlighting sustainable packaging and behind-the-scenes production processes.
  
• Facebook Ads: Target specific demographics based on interests and shopping behaviors. If you sell fitness products, run ads targeting health-conscious Australians in metropolitan cities like Sydney and Melbourne.
  

SEO for Australian-Specific Keywords

Optimizing your store for search engines is crucial to attracting organic traffic and reducing marketing costs. Focus on local SEO strategies to rank higher in searches relevant to Australian customers.

Key SEO tactics:

• Optimize for Australian keywords: Use phrases like “best dropshipping store in Australia” and “affordable Australian dropshippers” in your product descriptions, blog content, and meta tags.
  
• Create localized content: Write blog posts around topics like “Top Trending Eco-Friendly Products in Australia” to appeal to local consumers.
  
• Create a “Google My Business” profile: If you have a physical presence, set up Google My Business to improve visibility in local searches.
  

Email Marketing 

Building an email list is one of the most effective ways to retain customers and generate repeat sales. Shopify offers powerful tools like Shopify Email and third-party apps to help automate email marketing.

Effective email marketing strategies:

• Welcome emails: Send a friendly introduction with a discount code for first-time buyers
  
• Abandoned cart reminders: Recover lost sales by sending reminders to customers who left items in their carts
  
• Seasonal promotions: Offer exclusive discounts for Australian holidays like Australia Day or Christmas.
  

💡 Pro Tip: Segment your email list based on customer behavior, such as frequent shoppers or seasonal buyers, to send personalized offers and increase engagement.

Use list segmentation to engage the right target audience

Source: Email Chef

Paid Advertising Strategies

Besides organic marketing, paid advertising helps you scale your business faster. Google Ads and retargeting campaigns can keep your brand top-of-mind for potential buyers.

Examples of paid ad strategies:

• Google shopping ads: Target users searching for products like yours and drive them directly to your store.
  
• Facebook retargeting ads: Show ads to users who visited your store but didn’t purchase, increasing the chances of conversion.
  
• Influencer collaborations: Run sponsored posts or giveaways with influencers who have an Australian audience to build trust and brand awareness.
  

By combining organic and paid strategies, you can build brand awareness, attract customers, and turn casual browsers into loyal buyers.

Manage Orders and Customer Service

It's essential to have efficient processes in place to ensure smooth operations and happy customers. Exceptional customer service can set your store apart in the competitive Australian market and encourage repeat business.

Automating Order Fulfillment

Handling orders manually can be overwhelming as your store grows. Fortunately, Shopify offers powerful automation tools to streamline the fulfillment process and minimize errors. With Shopify Fulfillment Network, you can connect easily with our trusted logistics partner to ship anywhere, save time, and accelerate business growth.

Source: Shopify

💡 Pro Tip: Set up automated email notifications to keep customers informed about their order status, reducing inquiries and improving satisfaction.

Handling Customer Inquiries and Refunds Professionally

In the eCommerce world, quick and effective customer support is crucial to maintaining trust and credibility. Australian shoppers expect timely responses, and offering multiple support channels can enhance their experience.

Best practices for handling customer inquiries:

• Offer multi-channel support: Provide support via email, live chat, and social media to cater to different customer preferences.
  
• Implement a comprehensive FAQ page: Answer common queries about shipping times, refund policies, and product details upfront.
  
• Set response time goals: Aim to respond to all inquiries within 24 hours to ensure customers feel valued and heard.
  

Managing refunds and returns:

• Establish clear policies: Clearly outline your return and refund policy on your website to avoid misunderstandings.
  
• Work closely with suppliers: Choose suppliers with flexible return policies to facilitate hassle-free refunds when needed.
  
• Offer store credit: Offer store credit instead of refunds to retain revenue and maintain customer loyalty.
  

Providing Excellent Customer Support

Excellent customer service doesn't just solve problems—it builds relationships. Encourage customer loyalty by going above and beyond their expectations.

• Personalized follow-ups: Send a thank-you email after a purchase with a discount code for future orders.
  
• Loyalty programs: Implement loyalty rewards with apps like Smile.io to keep customers coming back.
  
• Gather feedback: Send surveys to customers asking for feedback on their experience and areas for improvement.
  

💡 Pro Tip: Engage with customers on social media and respond to their queries or reviews to build a community around your brand.

Scale Your Dropshipping Business

Expand Your Product Catalog

Expanding too soon can overwhelm your operations, while waiting too long can limit your growth potential. Consider adding new products when you notice:

• High customer demand for related products.
  
• Repeat customers looking for more variety.
  
• Strong sales performance with existing items.
  

Tips for successful expansion:

• Analyze sales data: Use Shopify analytics to track which products are performing well and identify related items to add.
  
• Test new products: Run small marketing campaigns to gauge interest before fully launching a new product line.
  
• Bundle products: Offer complementary products together to boost average order value. For example, pair eco-friendly home products with reusable storage containers.
  

💡 Pro Tip: Use FoxKit’s upsell and cross-sell features to recommend related products and encourage larger purchases effortlessly.

Learn more about FoxKit - Shopify AIO Sale-Boosting app by clicking on this banner:

Invest in Advanced Marketing Strategies

To take your store to the next level, consider investing in advanced marketing strategies to increase brand awareness and attract more customers.

Proven marketing tactics to scale your business:

• Content marketing: Create valuable blog content related to your niche, such as “Sustainable Home Decor Trends in 2025”, to drive organic traffic.
  
• Influencer collaborations: Work with Australian influencers or global niche influencers to boost credibility and exposure.
  
• Advanced retargeting: Use data-driven or behavioral retargeting tools to reach previous visitors and encourage them to complete their purchases.
  

By implementing these strategies, you can scale your dropshipping business successfully and continue to grow your revenue year after year.

FAQs 

1. How much does it cost to start a dropshipping business in Australia?

Starting a dropshipping business in Australia is relatively affordable compared to traditional retail businesses. The estimated startup costs can range from $100 to $500, depending on your choices and marketing strategies. Here’s a breakdown of potential expenses:

• Shopify Subscription: Starts at $1/month for the first 3 months, then $29/month (Basic plan).
  
• Domain Name: Around $10–$20 per year.
  
• Product Testing & Samples: $50–$200 to assess quality before selling.
  
• Marketing Budget: $100–$300 for running initial ads on platforms like Facebook, Instagram, or Google Ads.
  
• App Integrations: Some Shopify apps may have additional costs, starting at around $10–$50 per month, depending on features
  

2. How long does it take to see results with dropshipping?

The time it takes to see success in dropshipping varies based on factors like niche selection, marketing efforts, and your store setup. Typically, most entrepreneurs start seeing results within 3 to 6 months, but it depends on:

• Marketing Effectiveness: Running well-targeted ad campaigns can bring quicker results.
  
• Product Selection: Selling trending or in-demand products can drive faster sales.
  
• Consistency: Regular social media engagement, SEO efforts, and customer outreach are key to sustaining momentum.
  
• Optimization Efforts: Increase conversions through upselling and cross-selling strategies.
  

3. Does Shopify offer Australian-specific features?

Yes, Shopify provides several features tailored to Australian dropshippers to ensure seamless operations and compliance with local regulations. These features include:

• Local Payment Gateways: Shopify supports Australian payment providers like Afterpay, ZipPay, and PayPal.
  
• Automatic GST Calculations: Shopify can help calculate and apply the 10% Goods and Services Tax (GST) for Australian transactions.
  
• Multi-Currency Support: Allowing customers to shop in AUD and other global currencies to expand your reach.
  
• Fast Local Shipping Integrations: Shopify integrates with Australia Post and other couriers for reliable delivery tracking