Australian Dropshippers
Container cranes and stacked shipping containers at the Port of Melbourne

Dropshipping in Australia

An independent guide to dropshipping in Australia

Plain-English guides to starting and running an online store without holding stock, with every rule linked to the official source.

Photo: Bernard Spragg, CC0, via Wikimedia Commons

Start exploring

Start here

Interactive tool

What does each sale really leave you?

Enter your own selling price, supplier cost, shipping, fees and ad spend to see your estimated profit, net margin and break-even advertising cost per order.

Per order

Selling price
$59.95
GST to remit
−$5.45
Product and shipping
−$27.50
Platform fees
−$1.20
Payment fees
−$1.35
Refund allowance
−$1.64
Before advertising
$22.82
Advertising
−$12.00

Estimated profit per order

$10.82

Net margin 19.8% of the ex-GST price

Break-even ad spend $22.82 per order

Starting figures are examples only, not typical or recommended values. Use your own supplier, platform and payment provider rates. This is an estimate, not tax or financial advice.

Dropshipping has made it possible for almost anyone in Australia to open an online store. You don't need a warehouse, a shopfront or a garage full of stock. You choose products, build a store, and when a customer orders, your supplier ships the item straight to them. It's a genuinely useful way to test product ideas and build a brand with modest upfront costs.

What the success stories often leave out is that, in Australia, you are the retailer. Your customers buy from you, so you're responsible for the consumer guarantees, honest advertising and delivery promises. You may need an ABN and GST registration. Products you've never touched must meet Australian safety standards. Overseas goods face border and biosecurity rules. And your marketing emails must follow the Spam Act.

This site is an independent, plain-English guide to all of that. We explain how dropshipping works, how to find and vet suppliers, and how to run a store that treats customers fairly and stays on the right side of the ATO, the ACCC, the Australian Border Force and ACMA. Every guide links to the official sources so you can check the details for yourself. We don't sell products, run a supplier directory or take commissions from suppliers.

10%

GST

On most taxable sales

$75,000

GST threshold

Register within 21 days

A$1,000

Import threshold

Above it, a formal declaration is needed

How dropshipping works

According to Wikipedia, drop shipping is a form of retail where the seller accepts orders but doesn't keep goods in stock. Instead, the order goes to a manufacturer, wholesaler or other supplier, which ships it directly to the customer. You earn the difference between your selling price and your costs.

Those costs add up. From each sale you'll pay the supplier, shipping, platform and payment fees, advertising, refunds and, once you're registered, GST. That's why our margin calculator is the first tool we suggest you use. Plug in your real numbers and see what each order actually leaves you.

Start with the foundations

Our start dropshipping section covers the groundwork:

Choose suppliers and products carefully

Your supplier ships every order in your name, so choosing well is the biggest decision you'll make. Our find suppliers section explains:

Tall warehouse shelving stacked with labelled boxes
In dropshipping, your supplier's warehouse becomes your warehouse, so its accuracy and speed become your reputation. Photo: Shixart1985, CC BY 2.0.

Run your store well

Once you're trading, the run your store section covers the everyday obligations:

Five rules that prevent most problems

  1. You are the seller. Customers can seek remedies from you, not your supplier. Build your processes around that.
  2. Describe products honestly. Accurate photos, descriptions, prices and delivery times prevent most complaints and refunds.
  3. Check compliance before you list. Safety standards, bans, import restrictions and biosecurity rules apply to products you never touch.
  4. Know your numbers. Revenue isn't profit. Track your true cost per order and your break-even advertising cost.
  5. Stay registered and organised. Get an ABN if you're in business, watch the GST threshold, and keep records for five years.

Who this guide is for

  • Beginners researching whether dropshipping suits them.
  • New store owners setting up registrations, policies and suppliers.
  • Existing sellers checking their refund, delivery and pricing practices against Australian rules.
  • Side hustlers wanting to understand tax and record keeping before it becomes a problem.

How we research

We base our guides on official and authoritative sources, including the Australian Taxation Office, the Australian Business Register, ASIC, the ACCC and Product Safety Australia, the Australian Border Force, the Department of Agriculture, Fisheries and Forestry, ACMA and the OAIC. We cite our sources on every page and update guides when rules change. We don't invent statistics, typical earnings or costs. Where we use example numbers, we label them as illustrations. Read our editorial policy for more.

Our guides are general information, not legal, tax or financial advice. Rules change and every business is different, so check the official sources and speak to a registered professional about your situation.

About this domain

AustralianDropshippers.com.au previously hosted a dropship supplier directory and blog run by a different operator. That site no longer operates. The domain was relaunched in 2026 as an independent guide, with every page written from scratch. We're not connected with the previous operator, and we don't list or endorse suppliers.

In-depth guides

Guides

Frequently asked questions

Is dropshipping legal in Australia?

Yes. Dropshipping is a legitimate retail model. Australian dropshippers must follow the same laws as other retailers, including the Australian Consumer Law, product safety rules, tax law and the Spam Act.

Who is responsible for faulty products, me or my supplier?

The consumer can seek a remedy from the business that sold them the goods, which is you. You may be able to recover costs from your supplier under your agreement.

Do I need to register for GST?

You must register within 21 days once your GST turnover reaches $75,000, current or projected. You can register earlier by choice.

Can I use overseas suppliers?

Yes, but check import restrictions, biosecurity conditions and Australian safety standards, and be honest about delivery times and where items ship from.

Do you sell products or run a supplier directory?

No. AustralianDropshippers.com.au is an independent information site. We don't sell products, run a supplier directory or recommend particular suppliers. The domain previously hosted a supplier directory run by a different operator.

Is this legal or tax advice?

No. Our guides are general information based on official sources. For advice about your situation, speak to a registered tax agent, accountant or lawyer.

Sources and further reading

Facts on this page were checked against these primary and official sources. Conditions change — confirm before you travel or buy.

  1. Drop shipping — Wikipedia
  2. Consumer rights and guarantees — ACCC
  3. Registering for GST — Australian Taxation Office
  4. Importing goods — Australian Border Force
  5. Product Safety Australia — ACCC
  6. Avoid sending spam — ACMA

Spotted something out of date?

Local knowledge keeps this guide useful. Send a correction, a tip or a question and we’ll check it against official sources.

Contact the editors