How To Start Dropshipping In Australia In 2025

Launch your dropshipping store for FREE in Australia with AliDropship and become an owner of a profitable business

Why start dropshipping

Most of us dream of having a profitable business that serves customers all over the world, rather than getting a full-time job that restricts you in all directions. If you are one of such individuals, and you decided to change your life for the better once and for all – try a dropshipping business!

Dropshipping is a business model that is available to everyone regardless of location, education, and so on.

Example of dropshipping products

In a nutshell, it gives the entrepreneurs the following benefits:

  • No investments = no risks
  • No need of background knowledge
  • No boss = no bureaucracy
  • No extra staff and stuff
  • No limits of expanding your business

And this is not the entire story. If you would like to learn more about the concept of dropshipping, keep reading!

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How dropshipping works

#1
Find an online supplier who has the products you want to sell
#2
Show the supplier’s products with marked up prices on your website and advertise them
#3
Receive direct payment from the customers who buy from your website
#4
Your suppliers will get the orders and original prices of the products. You keep the profits to yourself!
#5
Do nothing: the supplier will ship the order directly to your clients
#6
Repeat! Find more products and suppliers if you like, and enjoy greater earnings!

Why start dropshipping in Australia

Starting a dropshipping business in Australia can be an exciting and rewarding venture. With the rise of ecommerce and the increasing demand for online shopping, dropshipping offers a unique opportunity to tap into the global market without the need for a large upfront investment. Here’s why it might be the perfect time to launch your dropshipping business in Australia.

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1. Low startup costs

One of the biggest advantages of dropshipping is that it requires minimal upfront investment. Unlike traditional retail businesses where you have to buy and store inventory, with dropshipping, you only purchase products after you’ve made a sale. This significantly lowers your startup costs and reduces financial risk, which makes it an ideal option for entrepreneurs on a budget. For Australians, the relatively low cost of setting up a dropshipping business—combined with access to global suppliers—makes it even more appealing.

2. Access to a global market

Australia’s position as an English-speaking country with a strong online presence provides a unique advantage. You can tap into global markets, whether it’s in the U.S., Europe, or Asia, while still catering to the Australian audience. Many dropshipping platforms integrate seamlessly with international suppliers. This means you can sell products to customers worldwide, leveraging Australia’s strong international trade relations and digital infrastructure.

3. Flexibility and lifestyle

Dropshipping offers a level of flexibility that traditional brick-and-mortar businesses can’t match. You can run your business from anywhere with an internet connection, whether from the beaches of Queensland or the cityscapes of Sydney. This type of business suits Australians who value work-life balance and wish to work from home or travel while maintaining their entrepreneurial efforts. All you need is a laptop, internet access, and the desire to succeed.

4. Growing ecommerce market in Australia

Australia has seen a rapid increase in ecommerce adoption, with consumers increasingly preferring online shopping for convenience and variety. According to recent reports, Australians spent billions on online shopping in the last few years, and that number continues to grow. As a dropshipper, this trend works in your favor. With fewer Australians willing to brave crowded shopping malls and more looking for deals online, dropshipping positions you to meet this demand for convenience and variety.
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5. Low risk and scalable growth

One of the primary reasons to start dropshipping in Australia is the low-risk nature of the business model. Because you don’t have to worry about managing inventory, you can focus on marketing and customer acquisition. As your business grows, it’s easy to scale—adding new products or expanding into different niches. This scalability allows you to adjust your offerings based on customer preferences and market trends without worrying about extra storage or shipping costs.

Starting a dropshipping business in Australia offers numerous benefits: low costs, flexibility, and access to a global market. With ecommerce continuing to boom and consumers increasingly turning to online shopping, dropshipping is a great way to tap into these trends with minimal risk. Whether you’re looking to start a side hustle or build a full-time business, dropshipping provides the tools and opportunities to succeed in the digital age.

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26.7 M

Population

17 M

Digital buyers

$57 B

Ecommerce sales in 2024

Fashion

Leading e-retail category

Advantages and disadvantages of dropshipping in Australia

Advantages of dropshipping in Australia

1. Low startup costs

Since you don’t need to invest in inventory upfront, dropshipping allows you to start your business with minimal financial risk.

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2. Wide product selection

You can offer a broad range of products without worrying about storage, as suppliers handle the inventory and fulfillment.

3. Scalability

Dropshipping is easy to scale. As your business grows, you can add more products or target new customer segments without needing to worry about warehouse space or logistics.

4. Location flexibility

You can run your dropshipping business from anywhere in Australia, as long as you have an internet connection. This makes it ideal for a flexible lifestyle.

5. Automated operations

Many aspects of the business, like order processing and inventory updates, can be automated, saving you time and effort.

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Disadvantages of dropshipping in Australia

1. Low profit margins

Since dropshipping is competitive, profit margins can be relatively low compared to other retail models. You may need high sales volume to make significant profits.

2. Shipping delays and costs

If you’re sourcing products from overseas suppliers, especially from countries like China, shipping times can be long, and international shipping fees may be high, which can hurt customer satisfaction.

3. Limited control

Since you don’t handle the product directly, you rely on suppliers for inventory management and fulfillment. If they make mistakes (wrong products, delayed shipping, or out-of-stock items), it affects your business.

4. Intense competition

Because of the low barrier to entry, many people are getting into dropshipping. This means there’s intense competition, especially in popular niches, making it harder to stand out.

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5. Customer service challenges

Handling customer complaints or issues with returns can be tricky when you’re not physically managing the products. Resolving disputes with suppliers can also be time-consuming.

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Overall, dropshipping in Australia offers a low-cost entry into ecommerce, but it comes with challenges like lower margins and reliance on third-party suppliers.

The dropshipping business model lets you deal with buyers across the world, whether it be a student from the Netherlands, or a housewife from the USA, or a citizen of any other developed country.

There, the infrastructure is perfectly optimized for ecommerce. So, you can enjoy both easy business management and a healthy profit level.

What to dropship?

You can choose anything you like!
The main idea is to sell the products that are emotional, inspiring, and unusual. This is how you will motivate your store visitors to make impulse purchases. Here are the product types we can recommend:
Gadgets
Gadgets, devices & accessories
activites
Accessories for sports & outdoor activities
crafts
Supplies for hobbies & crafts
clothes
Clothes & fashion accessories
decor
Home gadgets, accessories & decor

How much can you make with dropshipping?

Supplier price
$74
$5
$500
Your margin
100%
10%
400%
Amount of sales per month
610
0
1000
Your monthly profit:
US $50*
There are no limits - all you need is just to start!
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How far you can go with dropshipping: real-life experience

FAQ

Dropshipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This method enables businesses to operate without the burden of maintaining inventory.
In dropshipping, the process begins when a customer orders a product from your online store. You will then purchase the item from a dropshipping supplier, who ships it directly to your customer. This model allows sellers to focus on marketing and customer service without worrying about inventory management.
To start a dropshipping business in Australia, follow these steps: Research the dropshipping suppliers in Australia that cater to your chosen niche. Set up an online store using platforms like AliDropship or Shopify dropshipping. Add your dropshipping products to your store. Optimize your site for local customers. Market your store using strategies suitable for the Australian market.
Whether dropshipping is worth it in Australia depends on various factors, such as your niche, target audience, and chosen dropshipping suppliers. While this model has lower startup costs compared to traditional business setups, success may require substantial effort in marketing and customer outreach.
The best dropshipping suppliers in Australia vary, but platforms like AliDropship, CJ Dropshipping, AliExpress dropshipping , and Alibaba dropshipping are popular choices. They offer a wide range of products and competitive shipping rates, essential for Australian businesses looking to serve local markets.
Yes, dropshipping is legal in Australia. However, it is vital to comply with local regulations concerning business practices, taxes, and consumer rights. Always ensure that your business operations align with Australian laws to operate securely and efficiently.
The best dropshipping products often include items in health and wellness, technology, and home goods. Look for products with high demand and low competition, leveraging platforms like Amazon dropshipping and eBay dropshipping to explore market trends.
Reverse dropshipping is the practice where sellers in developed countries buy products from suppliers in developing countries to sell them at a markup in more affluent markets. This strategy often focuses on unique or niche products that are not widely available domestically.
Digital dropshipping refers to the model of selling digital products like e-books, courses, or software, where delivery is immediate and electronic. This eliminates shipping costs and can be a lucrative option for those focusing on technology-based solutions within the Australian market.
To find dropshipping websites in Australia, consider using online directories, joining forums dedicated to ecommerce, and attending local trade shows, which can also provide valuable resources and listings for Australian dropshipping suppliers.
Ready to start your dropshipping business?