How To Start Dropshipping In Australia In 2025
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.
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!
How dropshipping works
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.
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.
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.
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.
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.
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.
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.
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?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
An Australian Female Entrepreneur Runs 5 Dropshipping Stores Working From Anywhere
FAQ
Is dropshipping legal in Australia?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in Australia, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
