What is drop shipping and can you do it successfully in Australia?

The low-cost method to start a enterprise

When it entails investigating new enterprise ideas, it’s no shock to go looking out drop shipping on any listicle of best side-hustles. But what is drop shipping and can Australia be an awesome place to launch such a enterprise?

As the 55th most populated country, Australia punches correctly above its weight as a result of the 10th largest eCommerce market in the world.

Reselling merchandise on-line is considered one in all many finest sorts of firms to begin out. It differs from totally different firms that promote merchandise they’ve each found, made, upcycled or bought.

Drop shipping is a way of selling gadgets with out ever having to cope with them your self. All you must do is evaluation and provide out the simplest drop shipping merchandise to advertise — and then promote them.

What is drop shipping?

Drop shipping begins with someone making a purchase order order from you. Then, the product is shipped to them straight out of your supplier.

You not at all must care for the problems of shipping, storing or packing the merchandise your self.

By not worrying about present chain logistics or inventory administration, you can cope with discovering the simplest drop shipping merchandise in your goal market. Succeeding with this enterprise model requires informing and connecting with patrons to spark wild demand.

Drop shipping is renowned for its low upfront funding and low boundaries to entry. However, don’t contemplate it as a get-rich-quick scheme.

How to succeed

Drop shipping can be extraordinarily worthwhile if you do the evaluation and apply the distinctive promotional experience it takes to attain success. Make sure your pursuits align with what you’re prepared to take a position.

To obtain success and show pride in working your private drop shipping enterprise, you’ll want to choose:

  • Appealing or high-demand merchandise for the becoming price
  • The correct promoting and advertising and marketing strategies to succeed in, work together and service your required shoppers
  • Business processes to cope with returns, complaints, and potential present constraints

Some upfront funding is to be anticipated and you’ll want to make investments time and funds establishing your on-line presence.

Since you gained’t have to worry about logistics and storage, you have further freedom to find the simplest drop shipping merchandise obtainable. This will allow you to focus in your shoppers and their desires.

Is Australia an awesome place to begin out a drop shipping enterprise?

Overhead view of workers in a warehouse

Drop shipping firms thrive in areas that meet key requirements, along with:

  • Strong eCommerce progress potential
  • Good internet penetration
  • High adoption of experience
  • A rising inhabitants
  • High demand for on-line procuring

Australia ranks correctly for all 5 of these elements.

According to the Australia Post’s 2020 eCommerce Industry Report, on-line procuring elevated by 31% in April 2020 in comparability with the everyday in 2019.

The report moreover well-known Australians’ willingness to help regional and native firms.

And let’s be reliable, Australians love a reduction. However, we’re sometimes deprived of the fluctuate and breadth of newest and fascinating merchandise obtainable overseas. This is sometimes because of shipping, tax and logistical constraints.

Tapping into just a few of those present gaps is an vital different for savvy Australian entrepreneurs. With Asia being so shut, Australia has enormous sources to provide out the simplest drop shipping merchandise.

There’s moreover a plethora of excellent, locally-made, merchandise in Australia. These worthwhile and distinctive niches are ripe for the choosing — even among the many many further high-volume, low margin, drop shipping enterprises.

What are the simplest drop shipping merchandise in Australia?

Shoes in a box sitting on a table

Drop shipping works brilliantly for some merchandise and a lot much less so for others. If you’re contemplating of organising a drop shipping enterprise that gives to Australia, take into consideration asking your self the subsequent questions:

  • Is your potential supplier ready to ship your product to or inside Australia?
  • Is the product one factor you would buy and use your self?
  • Do you similar to the product and are you cozy promoting it?
  • How simple will it be to resolve present factors in the occasion that they arrive up?

To uncover out what people are looking for on the internet, you’ll should overview progress tendencies and their drivers. Analyse key phrases and dialogue boards for issues or product ideas you have an curiosity in.

Keep an in depth eye on what people are talking about on social media. You can sometimes uncover merchandise that help people with a particular need they’re making an attempt to cope with.

How to resolve on the merchandise you’ll promote

Below, you’ll uncover some additional suggestions on the right way to resolve on the simplest drop shipping merchandise to advertise.

1. Choose merchandise in scorching lessons

Keep in ideas, you’ll have to seek out out which on-line procuring lessons are well-liked. Over the ultimate yr, ingenious gadgets have seen sturdy progress all through effectively being, well being, gaming, dwelling and gardening lessons.

Some of the simplest drop shipping merchandise embody:

  • Smart watch bands
  • Gadget casings
  • Eco-friendly enhancements

Any tools that help simple use of experience is sure to be a winner.

You’ll moreover want to watch out for fads that can quickly fizzle out (similar to the vuvuzela). If you sit on these merchandise for too prolonged, you would possibly find yourself with further merchandise you can’t promote.

2. Opt for low-hassle decisions

Be aware of merchandise which can be fragile, degradable, restricted, copyrighted, or branded.

Some market platforms don’t permit drop shipped meals devices.


You’ll want to stay away from these complexities and any approved or remediation payments with suppliers and shoppers alike.

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3. Stay inside funds

Products which can be too expensive to buy or ship would possibly hinder your earnings. Be aware of your margins and consider suppliers. Try to stay away from sourcing from suppliers all through completely totally different areas, as a result of the blended shipping costs and logistics can become prohibitive.

4. Assess the usual of your merchandise

The best drop shipping merchandise are typically distinctive. Generally, the additional novel the upper. But be cautious of offering customer-specific modifications sooner than shipping, as this can erode your margins and add a further step to prime quality administration.

You’ll moreover want to be looking for attractive merchandise. Anything that’s visually fascinating, fascinating or quirky can help improve your product sales.

Generic or mass-produced devices can put you in a race to the underside on pricing and you might find yourself dropping potential shoppers to cheaper equivalents on totally different web sites.

Offbeat merchandise that evoke emotions are prone to fare larger than plain merchandise.


They moreover stand out in crowded marketplaces.

Key takeaways on drop shipping

Do your evaluation about suppliers and the sorts of merchandise you are ready and able to promote. Test the supplier and the merchandise and be reliable about what you are selling in your web page to stay away from purchaser disappointments.

Remember to cope with areas you have an curiosity in. Investigate lesser-known niches that might be underserviced by totally different drop shipping firms and retailers.

In Australia, there can be a seasonal or launch lag in comparability with overseas markets, so you might be succesful to get the leap on established native sellers.

Drop shipping is a way of organising a reselling enterprise with out having to be taught the ins and outs of present chain logistics.

It frees you as a lot as attain, educate and understand your shoppers. This permits you to buy the simplest drop shipping merchandise to help go effectively with their desires.

As with each little factor, what you put into drop shipping is what you get out of it.