Dropshipping in Australia, Pros and Cons

In recent years, eCommerce in Australia has been booming. As one of the fastest-growing eCommerce industries, Australia offers a thriving market for dropshipping. However, like every business, drop shipping in Australia has its downsides.

In this post, we will discuss some pros and cons of starting a drop shipping business in Australia so you can make an informed decision. The post also contains frequently asked questions about starting a dropshipping business in Australia.

Essentially, dropshipping allows us to source products from third-party suppliers and offer them in our online stores. Subsequently, dropshipping in Australia is a low-risk and low-cost business model that anyone can venture into. Due to its convenience and potential, dropshipping in Australia is definitely worth it.

dropshipping Australia

As one of the top eCommerce avenues worldwide, Australia is expected to reach 32.3 billion USD in market value come 2024. With this figure, we can ensure the rising popularity and profitability of dropshipping in Australia. As such, we can start venturing into the Australian market and achieve huge profits in the long run.

Let’s weigh the benefits and drawbacks of doing business in Australia.

dropshipping pros cons

Advantages of Dropshipping in Australia

Primarily, dropshipping in Australia has little to no upfront investment, so we don’t have to worry about starting capital. Consequently, this business model offers low-risk and high-reward benefits for drop-shippers. Plus, we can test different market trends and replace poor-performing products with best-selling ones. 

Additionally, dropshipping is flexible and scalable. Thus, allowing us to enjoy a continuous flow of passive profits with minimal supervision. Furthermore, we can integrate various dropshipping tools that can help us manage our business more efficiently.

  • Little to no upfront investment
  • Low-risk & high-reward
  • Test and replace products
  • Flexibility
  • Scalability

Related: Step-By-Step Guide to Dropshipping in Australia. (AutoDS)

Disadvantages of Dropshipping in Australia

Now, on to the drawbacks of dropshipping in Australia. In essence, Australia has a smaller market size compared to the United States (US). However, a smaller market means lesser competition so that we can generate more sales despite the size.

Moreover, dropshipping doesn’t give us full control over the stock and quality of products. But, with the help of stock monitoring tools and product reviews from multiple suppliers, we can easily manage product stocks and quality.

Finally, it’s challenging to build a brand when dropshipping. To address this, we can utilize store customization and marketing techniques to increase brand awareness and create a distinct brand from the competition.

  • Smaller in size compared to the US
  • No control over stock and quality
  • Difficult to build a brand
Frequency Asked Questions:
1. Is dropshipping in Australia profitable?

Yes, dropshipping in Australia is a lucrative venture to start. In fact, eCommerce in Australia is expected to achieve about 32.3 billion USD in market value by 2024.

2. Is is legal to start a dropshipping business in Australia?

Yes, it is legal to start a dropshipping business in Australia. As long as we adhere to the government’s rules on eCommerce, we can run our business legally. For instance, we must avoid selling copyrighted brands and hazardous products.

3. How can I start dropshipping in Australia?

You can start dropshipping in Australia by finding winning products to sell. Then, you must select multiple suppliers that can offer top-quality items and superb services. Afterward, you can start selling your products in a selling channel.

4. What is the best dropshipping niche for Australia?

There are several profitable niches to explore when dropshipping in Australia. We can explore the home and lifestyle niche, which includes best-selling double-sided tapes and cable clip organizers. Plus, Australia is a perfect outdoor entertainment market, so that we can offer products such as quick-dry sports towels, surfboard bike carriers, and swimming goggles.