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Australian Dropshippers

Directory of Australian wholesale dropshippers and drop shipping retailers.




STARTING A DROP SHIPPING BUSINESS IN AUSTRALIA

18/02/2015 By Marcin R.

Starting a drop shipping business in Australia


WHAT IS DROP SHIPPING AND HOW IT WORKS IN AUSTRALIA?

Drop shipping is a fulfilment model that is very commonly used in eCommerce. A
drop shipping business allows you to order small lots of products from
manufacturers or wholesale drop shippers who then send those products directly
to your customers, while labeling the delivery as if it came from your business.
This model is convenient for small businesses that do not have sufficient
resources to build large fulfilment warehouses where they can stock products to
sell to their customers. Some of the major benefits of running a drop shipping
business include:


 * Lower Capital Requirements: You do not need to spend thousands of dollars to
   purchase large quantity of stock since you only need to purchase a product
   when a customer places their order.
 * Wider Product Selection: Since you do not need to tie up your available
   capital with specific products, you are able to offer your customers a wider
   selection of products.
 * Location Independence: You can drop ship from virtually any location in the
   world as long as there is internet access. This is why dropshipping can is so
   lucrative. Australians can sell domestically using Australian dropship
   suppliers; sell domestically using international suppliers who ship globally,
   or even sell internationally using international drop shipping suppliers.
 * High Scalability: Scaling a drop shipping business is much easier compared to
   scaling a traditional retail business.

Requirements for Australian DropshippersThe first, and often the hardest step
when starting a dropshipping business in Australia or anywhere in the world for
that matter is to identify a suitable dropship supplier. There are several ways
you can go about this though:

 * Contact the Manufacturer Directly: If you have already identified the kind of
   product(s) you would like to sell, you can contact the
   
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   manufacturer directly and they might point you to several authorised
   distributors. Once you get in touch with the distributors, ask them if they
   would be willing to drop ship the product(s) for you.

 * Search on Google: You can also land some good drop shipping prospects by
   searching on the Internet. You, however, have to dig deep because many
   manufacturers and wholesalers are not known to be particularly keen on SEO.
   You might have to dig through 5-10 pages of mostly irrelevant or even spammy
   listings before you come across what you need.
 * Subscribe to a Directory: Whereas there are literally hundreds of drop
   shipping directories online, many are low-quality and will lead you on a wild
   goose chase. There are, however, a few reputable ones such as the SaleHoo
   Wholesaler and Dropshipper Directory. This is a good resource with a large
   searchable database of over 8,000 global pre-screened wholesale and drop
   shipping companies. The reason why this directory is the most popular amongst
   Australian online traders is that it actually features a good number of
   Australian companies and also because around 75% of the 8,000 suppliers are
   willing to work with international resellers. A lot of the current high
   traffic and popular Australian online stores such as Deals Direct, oo.com.au,
   Crazy sales and others are sourcing their products from this directory.

Once you identify a company that you can work with, you will need to check their
fees. Dropshippers typically charge two types of fees: Per Order Fee and Monthly
Fees. A Per Order Fee covers the expense involved with packaging and shipping of
the product. The fees are usually in the range of $2-$5, though they can be
higher for very large items or items that are difficult to process.

Some drop shippers might charge monthly ongoing fees for the privilege of
working with them. But, be forewarned: very often, this is an indication of a
poor quality drop shipper or even a fake one. Legitimate drop shippers rarely
require you to pay an ongoing monthly fee. Should you come across such a drop
shipper, take it as a red flag and give them a wide berth.

Some legitimate drop shippers sometimes do require a minimum purchase size
usually for your first order or minimum monthly order. If you fail to meet this
threshold, the drop shipper will charge you a certain fee. They usually do this
to filter out non-serious businesses that might cause them more trouble than
they are worth.

There are some key questions that you need to ask your drop shipper to avoid
some nasty surprises in the future. These include:

 * Shipping: Does the company ship to all locations in the world? This is an
   important consideration if your clients come from different parts of the
   
   Timely, Secure and Safe dropshipping.
   
   world. You should also bear in mind that this will influence how you will
   design your shopping cart.

 * Accounts: Ask the company whether it will automatically debit your credit on
   each order or will allow monthly payment terms. It’s not likely that the
   company will allow you credit when you are getting started, but some might do
   it later once you become a dependable customer.
 * Refunds, Returns & Support: Your customers might return products if the drop
   shipping company ships them something different from what they ordered. Ask
   the company about its returns policy, what support they offer and the types
   of guarantees they give on their products. Make sure you get this information
   in writing or an email.

Once you have identified a suitable drop shipper, you will need to do some legal
work. Many drop shippers won’t do business with you unless you have a legal
Australian Business Number (ABN). An ABN is a unique 11-digit number that acts
as your business ID. It has several key advantages including:

 * Helps to confirm your business identity to other businesses when you are
   ordering or invoicing
 * Avoids Pay-as-You-Go (PAYG) tax on the payments you receive from your
   customers
 * You can use your ABN to claim Goods and Services Tax (GST) credits
 * Helps you claim energy grants credits
 * Helps you to obtain an Australian domain name

Applying for an ABN is free. All you need to do is visit the Australian Business
Register and register online.



If you are looking to run multiple websites as separate dropship businesses, you
will need an Australian Company Number (ACN). To apply for an ACN, visit the
ASIC (Australian Securities and Investment Committee) website.

WHERE CAN YOU SELL YOUR DROP SHIPPED PRODUCTS

You can sell your drop shipped products virtually anywhere. Popular sites such
as eBay and Amazon use the drop shipping model to fulfil customer orders so you
can sell there too. But, to increase your chances of building a scalable and
profitable drop shipping business, it’s usually better to build your own
eCommerce site.

IS DROP SHIPPING A PROFITABLE BUSINESS?

The kind of profits you can make with a drop shipping business largely depends
on the niche you are involved in. Expensive products such as electronics
typically have thin margins in the range of 5%-10%. Low-priced accessories,
however, can sport much higher margins in the range of 50%-100%. Your profit
margins will also largely depend on your ability to offer value to your
customers, which will allow you to charge premium prices for your products.

How much money you actually make from your drop shipping business will depend on
your commitment and hard work. By picking a good niche and the right drop
shipping approach, it is entirely possible to build a business that provides you
with a six-figure income.

You may also be interested in “Drop Shipping Australia : Fill The Gaps In Your
Small Business Plan”



Enter Here For A Free Preview Of The Largest Global Drop Shipper Index On The
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Filed Under: Dropshipping Australia | Australian Dropship Industry Guides Tagged
With: australian dropship, drop shipping australia, dropshippers

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ABOUT MARCIN R.

I have been an internet commerce enthusiast since the early days of Google, eBay
and Amazon. Since 1999, I have been sharing information on how people can start
their online businesses and most importantly linking them with suppliers through
a number of my Wholesale, Dropship supplier directories.

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