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.
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.
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.
Summary
- 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.
Summary
- Smaller in size compared to the US
- No control over stock and quality
- Difficult to build a brand