What is drop shipping and can you do it successfully in Australia?

The low-cost approach to start a enterprise

When it entails investigating new enterprise ideas, it’s no shock to go looking out drop shipping on any listicle of biggest side-hustles. Nonetheless what is drop shipping and can Australia be an important place to launch such a enterprise?

As a result of the 55th most populated country, Australia punches successfully above its weight as a result of the 10th largest eCommerce market in the world.

Reselling merchandise on-line is thought-about one in all many finest types of firms to start. It differs from completely different firms that promote merchandise they’ve each found, made, upcycled or bought.

Drop shipping is a strategy of selling objects with out ever having to take care of them your self. All you should do is evaluation and provide out the easiest drop shipping merchandise to advertise — and then promote them.

What is drop shipping?

Drop shipping begins with any person making a purchase order order from you. Then, the product is shipped to them immediately out of your supplier.

You on no account should deal with the issues of shipping, storing or packing the merchandise your self.

By not worrying about present chain logistics or inventory administration, you can take care of discovering the easiest drop shipping merchandise to your viewers. Succeeding with this enterprise model requires informing and connecting with customers to spark wild demand.

Drop shipping is renowned for its low upfront funding and low boundaries to entry. However, don’t contemplate it as a get-rich-quick scheme.

The way in which to succeed

Drop shipping can be extraordinarily worthwhile if you do the evaluation and apply the distinctive promotional experience it takes to realize success. Make sure your pursuits align with what you’re prepared to take a position.

To attain success and take pride in working your particular person drop shipping enterprise, you’ll want to choose:

  • Fascinating or high-demand merchandise for the exact price
  • The correct promoting strategies to succeed in, interact and service your required prospects
  • Enterprise processes to take care of returns, complaints, and potential present constraints

Some upfront funding is to be anticipated and you’ll want to make investments time and funds establishing your on-line presence.

Since you gained’t have to stress about logistics and storage, you have additional freedom to find the easiest drop shipping merchandise accessible. It should allow you to focus in your prospects and their needs.

Is Australia an important place to start a drop shipping enterprise?

Overhead view of workers in a warehouse

Drop shipping firms thrive in areas that meet key requirements, along with:

  • Strong eCommerce progress potential
  • Good internet penetration
  • Extreme adoption of experience
  • A rising inhabitants
  • Extreme demand for on-line shopping for

Australia ranks successfully for all 5 of these elements.

Consistent with the Australia Post’s 2020 eCommerce Commerce Report, on-line shopping for elevated by 31% in April 2020 in comparability with the standard in 2019.

The report moreover well-known Australians’ willingness to assist regional and native firms.

And let’s be honest, Australians love a reduction. However, we’re sometimes deprived of the fluctuate and breadth of newest and fascinating merchandise accessible overseas. This is sometimes due to shipping, tax and logistical constraints.

Tapping into a couple of of those present gaps is a really perfect different for savvy Australian entrepreneurs. With Asia being so shut, Australia has large property to provide out the easiest drop shipping merchandise.

There’s moreover a plethora of excellent, locally-made, merchandise in Australia. These worthwhile and distinctive niches are ripe for the choosing — even among the many many additional high-volume, low margin, drop shipping enterprises.

What are the easiest drop shipping merchandise in Australia?

Shoes in a box sitting on a table

Drop shipping works brilliantly for some merchandise and a lot much less so for others. If you’re contemplating of building a drop shipping enterprise that gives to Australia, bear in mind asking your self the subsequent questions:

  • Is your potential supplier eager to ship your product to or inside Australia?
  • Is the product one factor you would buy and use your self?
  • Do you identical to the product and are you cosy promoting it?
  • How simple will it be to resolve present factors in the occasion that they arrive up?

To hunt out out what people are on the lookout for on the internet, you’ll should analysis progress tendencies and their drivers. Analyse key phrases and dialogue boards for issues or product ideas you have an curiosity in.

Preserve an in depth eye on what people are talking about on social media. You can sometimes uncover merchandise that help people with a selected need they’re attempting to deal with.

How one can determine on the merchandise you’ll promote

Underneath, you’ll uncover some additional suggestions on tips on how to determine on the easiest drop shipping merchandise to advertise.

1. Choose merchandise in scorching lessons

Preserve in ideas, you’ll have to search out out which on-line shopping for lessons are trendy. Over the previous 12 months, ingenious gadgets have seen sturdy progress all through properly being, well being, gaming, home and gardening lessons.

Among the many biggest drop shipping merchandise embody:

  • Smart watch bands
  • Gadget casings
  • Eco-friendly enhancements

Any gear that assist simple use of experience is optimistic to be a winner.

You’ll moreover want to watch out for fads that may quickly fizzle out (identical to the vuvuzela). If you sit on these merchandise for too prolonged, you might find yourself with additional merchandise you can’t promote.

2. Go for low-hassle decisions

Take heed to merchandise that are fragile, degradable, restricted, copyrighted, or branded.

Some market platforms don’t permit drop shipped meals devices.


You’ll want to steer clear of these complexities and any approved or remediation payments with suppliers and prospects alike.

Editor’s bear in mind: Steer clear of factors with what you can and can’t drop ship — create your particular person eCommerce website with GoDaddy’s On-line Retailer. No tech experience required!

3. Maintain inside funds

Merchandise that are too pricey to buy or ship might hinder your earnings. Focus in your margins and study suppliers. Try and steer clear of sourcing from suppliers all through utterly completely different areas, as a result of the blended shipping costs and logistics can change into prohibitive.

4. Assess the usual of your merchandise

The proper drop shipping merchandise are typically distinctive. Normally, the additional novel the upper. Nonetheless be cautious of offering customer-specific modifications sooner than shipping, as this can erode your margins and add a further step to top quality administration.

You’ll moreover want to be searching for engaging merchandise. One thing that’s visually fascinating, fascinating or quirky can help improve your product sales.

Generic or mass-produced devices can put you in a race to the underside on pricing and you may find yourself shedding potential prospects to cheaper equivalents on completely different web sites.

Offbeat merchandise that evoke emotions are inclined to fare larger than plain merchandise.


Moreover they stand out in crowded marketplaces.

Key takeaways on drop shipping

Do your evaluation about suppliers and the types of merchandise you are eager and able to promote. Check out the supplier and the merchandise and be honest about what you are selling in your website to steer clear of purchaser disappointments.

Maintain in thoughts to take care of areas you have an curiosity in. Study lesser-known niches that might be underserviced by completely different drop shipping firms and retailers.

In Australia, there can be a seasonal or launch lag in comparability with overseas markets, so you could also be able to get the soar on established native sellers.

Drop shipping is a strategy of building a reselling enterprise with out having to check the ins and outs of present chain logistics.

It frees you as a lot as attain, educate and understand your prospects. This permits you to buy the easiest drop shipping merchandise to help go properly with their needs.

As with each little factor, what you put into drop shipping is what you get out of it.


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