This a very common question that we get and that is how does drop shipping work in Australia? You may be thinking about starting up a business of your own, but don't know where to start. Drop shipping is a popular method of selling goods and services online without any upfront inventory, capital or fixed costs involved in the process.
The benefits are low overhead costs and high profit margins for both the merchant and customer. It's also said to be a more flexible option for new or small businesses that have limited budgets. The main idea behind drop shipping is to act as a middleman or agent for sellers who do not have the resources to transport their own goods. The primary role of a drop shipper is to sell the product at a higher price while delivering the product from their warehouse to the customer's door through various shipping methods.
The owner of a business that also manufactures and creates the products can use the drop shipping business model, but instead of storing their products in his own warehouses, he contracts out this job to another third-party company who stores all of his products at their warehouse.
Benefits of drop shipping in Australia are as follow,
No upfront capital required to start a business and hence you don't have to first find suppliers and manufacturers before you get to reap the profits. Instead, you can begin receiving orders from customers within a few days of starting the business. The only initial costs that they will incur is when they choose their own drop shipping company. Another benefit of drop shipping is the ability to expand your business without the need of having to worry about inventory and space. It makes it easier for you to grow.
Down sides of drop shipping in Australia are as follows,
Drop shipping in Australia is not the most always the convenient option for customers who have been used to having their orders ready within a few minutes. They prefer to get their orders when they want them ie over the store counter and drop shipping may take longer than expected. Another disadvantage of drop shipping in Australia is there can be reduced profit margins that you would get compared to other options. This is because you would be taking orders from customers and shipping them the products. No inventory is involved in drop shipping and hence you have not physically seen the item and are not 100% sure of the quality of the product once it has been shipped.
What do you need to start an Australian drop shipping store?
All you need to start an Australian drop shipping store is your ABN, internet access, a domain name, a free or paid drop shipping software option like Shopify. Once you are done with all of the above you will need to find a drop shipping supplier for your product. We have a blog post that covers our top 9 Australian dropship Supplier here. Now having said all that most people start drop shipping because of its cheap and easy barrier to entry but there is lot of technical knowledge need to run and market a successful store this includes.
Selecting The Right Drop Shipping Niche Products
Selecting the right products to sell in your store is very important as you have to make sure they are profitable. You need a good product research software and sourcing service to help you with this process. The more money you can make from the products you choose, the more money you will keep in the end.
Build Your Drop Shipping Store
Build your drop shipping store can be difficult if you don't have professional drop shipping software. The best drop shipping software option for Australian is Shopify as it allows you to import products directly from your supplier's website and set pricing for them. You can get started with a free 14 day trial here
Finding Australian Dropship Suppliers
Another important thing is that finding Australian suppliers can be hard if you don't know where to look and what the popular niche is. If you want to be successful in drop shipping in Australia you need to find a good supplier from where you can buy products and get a good profit.
How Advertise and Market Your Australian Drop Shipping Store
And lastly how advertise and market you Australian drop shipping store, we use Facebook and Google ads for our business. Both are very effective and we highly recommend them for your online store. These 2 platforms have the most traffic in the world which is a great way to start driving traffic to your store and getting those all important customers.
Putting All The Drop Shipping Pieces Together
A drop shipping course can help you to learn how to set up a drop shipping business. We have created some FREE Australian drop shipping training that will walk you step by step through all the basics and really help you put all the pieces together. This is a fastest way to learn how to start a drop shipping business in Australia.
So there you have it, Hope you got some value out of this blog post. Drop shipping has many benefits and in our opinion it is one of the most profitable business models out there, you can grow your drop shipping store very quickly once you have the knowledge.