Dropshipping is a popular online business model that allows you to sell products without having to stock or own them. You purchase the products from a third-party supplier and have them shipped directly to your customers while you handle the marketing and customer service.
Dropshipping can be a lucrative and flexible way to start an online business in Australia, as the ecommerce market is growing rapidly and the demand for online shopping is high. However, dropshipping also comes with some challenges and considerations you must be aware of before launching your store.
Your May also read What is Dropshipping?
This article will guide you through the steps and tips on successfully starting a dropshipping business in Australia. Here are the main topics we will cover:
- How to choose a niche and products for your dropshipping store
- How to find reliable and local dropshipping suppliers in Australia
- How to set up your online store using an ecommerce platform
- How to design and brand your dropshipping store
- How to set up your payment gateways and taxes
- How to market and promote your dropshipping business store
- How to handle customer service and returns
Let’s get started!
How to choose a niche and products for your dropshipping store
One of the first and most important decisions you must make when starting a dropshipping business is what niche and products you want to sell. A niche is a specific market segment you target with your products and marketing. For example, fitness, beauty, pets, or gaming are some popular niches.
Choosing a niche and products for your dropshipping store can be challenging, as you need to balance several factors, such as:
You want to sell products that have a high and consistent demand in the Australian market, as this will ensure that you have enough customers and sales. You can use tools like Google Trends, Facebook Audience Insights, or Keyword Planner to research the popularity and seasonality of different niches and products.
You want to avoid niches and products that are too saturated or dominated by big brands, as this will make it harder for you to stand out and compete. You can use tools like SimilarWeb, Alexa, or SEMrush to analyze different niches and products’ competition levels and traffic.
Profitability Dropshipping Business:
You want to sell products with a high-profit margin, which will allow you to cover your costs and make a good income. You can calculate the profit margin by subtracting the product cost and other expenses (such as shipping, marketing, platform fees, etc.) from the selling price. You can use tools like SaleHoo or AliExpress to find out the product cost and shipping fees of different products.
You want to sell products that are unique, innovative, or solve a specific problem, as this will make them more appealing and attractive to your customers. You can use tools like Product Hunt, Kickstarter, or Trend Hunter to discover new and trending products in different niches.
A good strategy to choose a niche and products for your dropshipping store is to start with a broad niche you are interested in or passionate about, then narrow it down to a more specific sub-niche that meets the above criteria. For example, if you are interested in the fitness niche, you can narrow it down to yoga, running, or weight loss and find products catering to those sub-niches.
Some examples of profitable and popular niches and products for dropshipping in Australia are:
Home and garden:
Products such as furniture, decor, lighting, bedding, kitchenware, etc., that help customers improve their living spaces and lifestyles.
Health and wellness:
Products such as supplements, vitamins, skincare, personal care, fitness equipment, etc., that help customers enhance their health and well-being.
Fashion and accessories dropshipping business:
Products such as clothing, shoes, jewellery, watches, sunglasses, etc., help customers express their style and personality.
Electronics and gadgets:
Products such as laptops, smartphones, tablets, cameras, headphones, speakers, etc. help customers stay connected and entertained.
Hobbies and entertainment:
Products such as books, games, toys, musical instruments, art supplies, etc., help customers enjoy their hobbies and interests.
How to find reliable and local dropshipping suppliers in Australia
Another crucial step in starting a dropshipping business in Australia is finding reliable and local dropshipping suppliers that can provide you with high-quality products and fast and affordable shipping. A dropshipping supplier is a company that manufactures, stores, and ships the products that you sell on your online store.
Finding reliable and local dropshipping suppliers in Australia can be challenging, as there are not as many options as in other countries, such as China or the US. However, there are some benefits of working with Australian dropshipping suppliers, such as:
Faster and cheaper shipping:
You can offer your customers faster and cheaper shipping options, as the products are shipped from within Australia rather than overseas. This can improve customer satisfaction and retention and reduce shipping costs and risks.
Better quality and compliance:
You can ensure that the products you sell meet the Australian quality and safety standards and comply with the Australian consumer law and regulations. This can improve product quality and reputation and reduce legal liabilities and issues.
Easier communication and support:
You can communicate and collaborate with your suppliers more efficiently, as they speak the same language and operate in the same time zone. This can improve your relationship and trust with suppliers and quickly resolve problems or disputes.
There are different ways to find reliable and local dropshipping suppliers in Australia, such as:
Using online directories: You can use online directories, such as SaleHoo, eSources, or Wholesale Central, to find and compare different dropshipping suppliers from Australia. These directories provide information such as the supplier’s name, contact details, product range, pricing, shipping options, reviews, etc.
Using dropshipping platforms: You can use dropshipping business platforms, such as Syncee, Spocket, or Modalyst, to find and integrate different dropshipping suppliers from Australia into your online store. These platforms provide you with features such as product import, inventory management, order fulfilment, tracking, etc.
Using search engines: You can use search engines like Google or Bing to find different dropshipping suppliers from Australia. You can use keywords such as “dropshipping suppliers Australia”, “dropshipping suppliers [niche]”, or “dropshipping suppliers [product]” to narrow down your search results. You can also use filters such as “country”, “language”, or “date” to refine your search results.
Using social media: You can use social media, such as Facebook, Instagram, or LinkedIn, to find different dropshipping suppliers from Australia. You can use hashtags such as “#dropshippingsuppliers“, “#dropshippingsuppliersaustralia“, or “#dropshippingsuppliers[niche]” to discover different posts and profiles related to dropshipping suppliers. You can also use groups, pages, or forums to network and interact with other dropshippers and suppliers.
Some examples of reliable and local dropshipping suppliers in Australia are:
Printful: A print-on-demand dropshipping supplier that allows you to sell custom-designed products, such as clothing, accessories, home decor, etc. You can connect your online store to Printful and upload your designs, and Printful will print and ship the products to your customers on demand.
AppScenic: A dropshipping supplier that offers a wide range of products, such as electronics, gadgets, toys, health, beauty, etc. You can use their app to import products to your online store, and they will handle the order fulfilment and shipping for you.
Ozdingo: A dropshipping supplier that specializes in products such as pet supplies, health, beauty, fitness, home, garden, etc. You can browse their catalogue and order products from their website, and they will ship the products to your customers for free the next business day.
Bondi Beach Tea: A dropshipping supplier focusing on tea products, such as loose-leaf tea, tea bags, tea accessories, etc. You can design your private-label tea blends and labels, and they will print and ship the products to your customers.
Eleganter: A dropshipping supplier that provides wooden toys, such as puzzles, games, educational toys, etc. You can register as a drop shipper on their website, and they will ship the products to your customers after you place the order.
How to set up your online store using an ecommerce platform
The next step in starting a dropshipping business in Australia is setting up your online store using an ecommerce platform. An ecommerce platform is a software or service that allows you to create and manage your online store, such as adding products, setting prices, processing payments, etc.
There are different ecommerce platforms that you can use to set up your online store, such as:
Fathershops: A popular and user-friendly ecommerce platform that allows you to create and customize your online store using templates, apps, and features. You can also integrate your online store with different dropshipping suppliers and platforms, such as Fatherstock, Aliexpress, etc.
WooCommerce: A powerful and flexible ecommerce platform that allows you to create and customize your online store using WordPress, a content management system. You can also integrate your online store with different dropshipping suppliers and platforms, such as Printful, AliDropship, DropshipMe, etc.
BigCommerce: A robust and scalable ecommerce platform that allows you to create and customize your online store using templates, apps, and features. You can also integrate your online store with different dropshipping suppliers and platforms, such as Printful, Syncee, Modalyst, etc.
How to design and brand your dropshipping store
- Identify your brand buzzwords: Identify the keywords that best describe your brand. You can use Instagram to find inspiration and identify the most popular hashtags in your niche.
- Choose a business name: Once you have identified your brand buzzwords, you can use them to create a unique and memorable business name. Make sure that the name is easy to spell and pronounce.
- Create a logo: A logo is essential to your brand identity. You can use online logo generators to create a professional-looking logo for your store.
- Communicate your brand to customers: Once you have created your brand identity, it’s essential to communicate it effectively to your customers. You can create a consistent visual identity across all your marketing channels, including your website, social media profiles, and email marketing campaigns.
How to set up your payment gateways and taxes
To set up payment gateways and taxes for your dropshipping store, you can follow these steps:
- Choose a payment gateway: A payment gateway is a tool that lets customers buy something in an online store. You can choose from various payment gateways available for your dropshipping store. Some famous payment gateways are FatherPay, PayPal, Stripe, and Shopify Payments.
- Check if the payment gateway supports your country and currency: Make sure to check that your payment gateway supports the countries you will be selling to and any different currencies used in those countries.
- Set up taxes: For guidance on handling dropshipping business taxes, it’s advisable to consult with a professional accountant. There are four types of taxes for dropshipping businesses: income tax, sales tax, import tax, and value-added tax (VAT).
How to market and promote your dropshipping business store
To market and promote your dropshipping store, you can follow these steps:
- Utilize social media marketing: Social media platforms like Facebook, Instagram, and Twitter are great ways to reach potential customers. You can create a business page on these platforms and post engaging content that showcases your products.
- Optimize your website for search engines: Search engine optimization (SEO) is optimizing your website to rank higher in search engine results pages (SERPs). You can use tools like Google Keyword Planner to identify relevant keywords and optimize your website content.
- Collaborate with influencers: Influencer marketing is a great way to reach a wider audience. You can collaborate with influencers in your niche and ask them to promote your products to their followers 2.
- Run targeted ads: You can use platforms such as Google Ads and Facebook Ads to run ads that reach out to potential customers interested in your products 2.
- Offer discounts or promotions: Offering discounts or promotions is a great way to attract new customers and retain existing ones. You can offer discounts on your products or free shipping for a limited time.
How to handle customer service and returns
To handle customer service and returns for your dropshipping store, you can follow these steps:
- Create a clear return and refund policy: A clear return and refund policy is essential for your customers to make informed decisions. You can include information such as which items are exempt from your returns policy, if your returns are free of charge, if you offer exchanges for the products, which countries are eligible for refunds and returns, and the period when customers are eligible for a return 1.
- Set expectations: As an entrepreneur, your first step to successfully handling refunds and returns is setting clear expectations for anybody who lands at your store, regardless of whether they purchase. The research found that 67 per cent of online shoppers check a business’s returns page before purchasing.
- Coordinate with your dropshipping supplier: Coordinate with your dropshipping supplier to ensure that the return process goes smoothly.
- Please communicate with your customers: Communicate with them and do what you can to keep them happy. It’s important to deal with the situation professionally and provide the best service possible for your customers.
The ecommerce platform you choose for your online store will depend on your preferences, budget, and needs. You can compare the pros and cons of different ecommerce platforms.