Dropshipping is a retail fulfillment method by which you run an online store without worrying about the stock. There's no need to keep an inventory, and you can contact suppliers that deliver the products to your customers, which excludes the transportation burden.
The dropshipping business model is getting popular worldwide, and online merchants in almost every country rely on it. However, if you want to start dropshipping in Australia, you can read this write-up further for some valuable tips.
If you decide to start your dropshipping business in Australia, you must be aware of some useful tips that will help you in making progress with your decision. In addition, you must be well-informed about everything from choosing the right eCommerce platform to the best dropshipping suppliers. With that being said, let's take a look at five valuable tips to start your dropshipping business in Australia.
1. Choose the Right eCommerce Platform
First, you must choose an eCommerce platform well-suited to the Australian market. The eCommerce platform will act as the base of your dropshipping store and allows you to make changes to the store as per your requirement. With the help of the right eCommerce platform, you can easily design and manage the store.
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However, choosing the eCommerce platform is another task, and you must make sure that you have an excellent ecommerce platform. The best eCommerce platforms available are adept at providing the right features, a user-friendly interface, and incredible customer support. If you make an effort and find the right eCommerce platform, it will surely benefit you and your store in the long term. Some of the best examples would be Shopify, BigCommerce, and WooCommerce.
2. Find the Best Supplier
As you begin with dropshipping and wish for success with all the efforts you put in, finding the right supplier is important. The role of a supplier is to hold the products for you. And after that, they deliver them to the customers whenever a request is received.
So, you must look for the best dropshipping suppliers in Australia, as they'll operate and keep your products in the same country. There are many benefits of choosing suppliers from the same country you're opening from, including fast shipping, hassle-free returns, reliable products, and excellent customer service.
3. Offer the Right Payment Methods
Offer the most popular payment methods in Australia when starting dropshipping there. Adding at least three payment options to your dropshipping store is mandatory because if you don't do that, you'll find several abandoned checkouts. To ensure that you're offering the right payment methods to your visitors/customers, you should be aware of all types of payment methods popular in Australia.
The most popular payment methods in Australia that you can add to your online store are:
- Credit and debit cards: Visa and Mastercard are widely accepted, and many online stores also accept American Express and Discover.
- PayPal: This is a widely used online payment platform that allows customers to pay with their PayPal balance or linked bank account.
- Bank transfer: Some online stores allow customers to pay via bank transfer, either directly into the store's bank account or through a third-party platform like Stripe.
- Afterpay: This is a popular buy now, pay later service that allows customers to pay for their purchases in installments.
- ZipPay: Similar to Afterpay, ZipPay is another buy now, pay later service that allows customers to pay for their purchases in installments.
- Apple Pay and Google Pay: These digital wallet platforms allow customers to make payments using their mobile devices.
Different payment methods may be more widespread depending on your product type and your target audience. Therefore, it's a good idea to offer a range of payment options to give your customers flexibility and increase their chances of purchasing.
4. Learn a Bit About Taxes
Getting information about taxes can surely be a boring task, but it is an essential part of starting your dropshipping business. Before starting dropshipping in Australia, you must get some knowledge about the payable taxes to make your business function better. However, if you're operating out of Australia, you should be aware of the two main types of taxes.
1. Individual Income Tax: In Australia, individual income tax is a type of tax imposed on the income earned by individuals. This includes income from wages and salaries, as well as other sources such as investments, rentals, and capital gains.
The income tax system in Australia is progressive, which means that individuals with higher incomes pay a higher tax rate. The Australian Taxation Office (ATO) is responsible for administering the income tax system in Australia. They use a system of tax brackets to determine the tax rate that applies to an individual's income.
2. GST: Australia also has a Goods and Services Tax (GST) that is 10% on most goods and services in Australia; this rate is included in most prices. However, you only have to pay the GST only after your dropshipping store reaches an annual revenue of $75,000. In addition, if you purchase the products online at $1,000 or less, they'll be considered low-value products, which means they'll be duty-free.
5. Reserve a Budget
There's no doubt that you can start your dropshipping store with minimum start-up cost, but you at least have to spend some from your pocket. Hence, you must reserve some budget as you start your dropshipping business:
1. You need to buy a domain and then pay for your ecommerce platform. Experts suggest that you deploy some useful apps to your dropshipping store to make it more functional. Most dropshippers prefer to use Shopify, which comes with some useful apps to increase the functionalities of your store.
2. You need to pay some to the suppliers, which you can only avoid at a cost.
3. You need to figure out the budget for marketing, as you need it to be able to tell the audience about your store and the facilities it will be offering.
As you know everything you need to know to start a dropshipping store in Australia, we'd like to recommend some top-rated suppliers to make your business successful.
AliExpress is an online retail platform that links Australian dropshippers with reliable suppliers in China. AliExpress gets the top spot on this list because of the plethora of features it offers. You can choose from a large selection of products and shortlist the most affordable products, and it offers excellent buyer/seller protection.
If you rely on AliExpress, you get over 100 million products from every category available. In addition, you can use the Dropship Center, which helps you research the best products. Even though AliExpress does not have a warehouse in Australia, it ships products swiftly and smoothly, as you expect from a reliable supplier.
2. Target Australia
The only thing that makes Target Australia a reliable supplier is the fact that they have more than 2000 physical stores. It has proved its mettle in the United States by being one of the ten prominent retailers there.
In Australia, it has also earned a reputation as a reliable supplier and offers many useful features to dropshippers. Best of all, they have a free delivery policy for products over AU$60 and can even ship the products within 24 hours. In addition, they also offer a 60-day easy return policy which makes the platform extremely flexible.
3. Factory Fast
Factory Fast is the right notion for you if you've been looking for suppliers to help you choose products from multiple categories. You can choose from furniture, sports equipment, renovation tools, and lifestyle products.
Being one of the most reliable suppliers for Australian dropshippers, they provide an address book to streamline the whole shipping process and help you earn great profit.
With DHGate, you get direct access to dropshipping products and a huge variety. It works with a network of Chinese suppliers, which makes the whole process smooth and profitable. DHGate offers special deals and discounts and has a huge network of warehouses.
You can choose from a variety of categories as the platform offers more than 20 million products. In addition, you get special deals, discounts, and cashback offers. Like AliExpress, DHGate doesn't have any warehouses in Australia, but it will never harm your experience when working with a supplier like them.
Catch is an Australian dropshipping supplier that offers a wide range of products, from electronics and homewares to fashion and beauty items. They have a user-friendly website that makes finding the right product for your needs easy, and their prices are competitive.
As a dropshipper, you'll get amazing deals daily from Catch, and once you count yourself in their loyal customer base, you get more benefits. With Catch, it is easy to track the order status, and there's no need to contact customer support for it.
Hence, from the tips mentioned above, you can start your dropshipping store in Australia with ease. There's a low investment, minimal risks, and incredible benefits related to dropshipping in Australia.
As you start your business in Australia, you need to choose the right supplier and get on with your business to earn profits. Regardless of the supplier you choose, it is worth planning and being ready to deal with all kinds of challenges involved in your dropshipping business model. However, if you like to read more informative blogs on eCommerce and dropshipping, you can read the blogs available on DSers.