What is Drop Shipping? Does It Still Work In Australia?

What is drop shipping at the end of the day?

Drop shipping is a business model in which the distributor, or wholesaler, does not keep goods in stock but instead transfers the responsibility of fulfilling orders to their customers.

Now that we know what drop shipping is, let's look at how it works in Australia. It's been around for decades and has helped online sellers get their businesses off the ground and make a successful living as entrepreneurs.

Drop shipping allows Australian businesses to compete with larger companies on price by saving on inventory costs and passing those savings onto consumers. It is a reliable way to move products without being worried about storage space or the cost of sales.

What are the benefits of drop shipping in Australia?

For the entrepreneur, drop shipping makes it easy to expand into new markets by not having to buy inventory or set up warehouses. It's a great way for businesses that have products available in Australia to get their products on the market when they're ready.

The biggest benefit of drop shipping is that it is a low cost business model. It requires less up-front capital and there are no additional marketing costs because everything is done for you by the manufacturer or wholesaler. Furthermore drop shipping requires very little initial cost and is a very profitable way to sell products, provided you're careful about where and how you sell and source them.

What are the disadvantages of drop shipping in Australia?

While the benefits of drop shipping in Australia are plenty, there are also several disadvantages. The biggest issue is that drop shipping can be fraught with hidden fees and unexpected fees. This isn't uncommon but it's important to know what these additional costs are and whether they're worth it or not to you.

The major disadvantage of drop shipping is the cost associated with storage fees. While this is optional in most cases, it can add up very quickly. Drop shipping makes it easy to expand your business into new markets, but this can come at additional cost if you're not careful.

Another disadvantage of drop shipping is that you aren't able to control pricing or inventory. The retailer you're using handles everything for you, and the retailer has control over what sells, what doesn't sell and how quickly it moves out the door.

How long does it take to set an Australian drop shipping store?

The first step to starting a drop shipping business is deciding what kind of products you'll sell. This can be anything from clothing, accessories, electronics, or home goods. The next step is finding a supplier to source those products from and how to get them in "stock" on your store.

After that, you just need to ship the products straight to customers and update your tracking numbers. It's a lazy man's business model that requires very little time or work and enables you to spend more time developing your own "store brand" rather than spending your valuable time sourcing products.

How much does it cost to start an Australian drop shipping store?

For the most part, drop shipping is very cost effective. If you're getting started in a niche that you know well, there are few start up costs. You may need to upgrade your computer or add a few pieces of equipment to get started, but other than that it's all profit.

It's very easy to start drop shipping for free or for a small cost. Many online merchants start by using existing social media accounts and creating their own website for free.

Shopify, for example, is a paid option that allows you to publish and sell your own products on your website. Once you have your products, it's relatively easy to get started with drop shipping. If you have access to a wholesaler or manufacturer in Australia, they'll ship your goods directly to customers without requiring any upfront costs.

Is it hard to find Australian drop shipping suppliers?

It can be a challenge but they are out there. Start searching online. Search for companies that offer drop shipping services in Australia, and do your research beforehand to make sure they're legitimate and reputable. Look at their track record of success and see how long they have been in business as well as what size their company is.

When you find one that looks promising, reach out to them and ask for a quote. Try to understand what it is you'll be paying for and if their rates are really worth it. Decide whether you can afford it or not based on what the costs add up to after your business grows.

Australian drop shipping suppliers often charge a delivery fee, sometimes warehouse storage fees and GST fees. These are separate from the product cost, which can add up as well which is something you really need to keep in mind.

Is drop shipping Australian products safe?

Yes, drop shipping products are safe to sell because the wholesaler or manufacturer will check your product before it ships. If there is a problem with the product they will not ship it. No company wants to have a return on their hands and incur the cost of shipping back a faulty product. By having an Australian wholesaler pull the trigger on your inventory you know that it won't be lost in transit and someone will have to pay for the return shipment back to you.

How Much can you make drop shipping in Australia?

There are many people in Australia that make a good living selling products via drop shipping. (even some of the biggest companies do it). Just like any business you can grow and scale these types of drop shipping stores into big companies over time with some hard work and determination.

It's an effective way to keep costs low and profits high but again it's not without its challenges. If you're looking to make as much money as possible, then you should be careful about the drop shippers you decide to use. Always do your research before committing to any one company, and read your contracts carefully too.

How much money does it cost to start an Australian drop shipping store?

It's not as expensive here as you may think, you will need a Shopify store which costs $29 per month (or $179 one-time fee) and then you can start with a free theme.

You will need a domain we use Go Daddy which costs around $15 per year, and a SSL certificate which costs a small fee per year. A Shopify subscription also gives you free SSL and an App Store for your ecommerce store anyway.

The biggest challenge and cost of of starting a drop shipping business is getting sales in the first place so this is something you have to work on before too long. We use Facebook ads, Google ads, and other ad networks to drive traffic to our stores with a high success rate. We also use e-mail marketing, and build relationships with influencers in the industry. You can get started with as little as $5-10 per day and scale up as your sales come in and your budget increases.

Australian drop shipping suppliers don't usually charge a big set up fee for drop shipping. You will need to look into what it might cost you to get started with a drop ship business though and compare that with how much you can make by selling products online.

Does Drop Shipping Work In Australia?

Finally, many people ask wether drop shipping still works or not in Australia. The short answer for most people is yes, but as mentioned above there are some issues and challenges that come with drop shipping in Australia.

However It has proven to be a successful business model for companies in Australia and around the world, drop shipping and ecommerce generally are booming right now and the business model has year on year growth over the past 10 + years.

So there you have it brief overview of drop shipping in Australia, if you would like to find out more be sure to check out our free drop shipping training here, it goes into a lot more depth and I'm sure you will get a ton of extra value out of it