If you’re based in Australia and you are considering starting a dropshipping business or growing your e-commerce business, Amazon can be the perfect launchpad for your entrepreneurial growth.
It’s nearly impossible not to have heard of Amazon if you have even a passing interest in the digital commerce world. But hey! Maybe you’ve been focusing on other interests, and there’s no judgment here.
Whatever your case, today we’ll share everything you need about dropshipping on this e-commerce giant.
Key Takeaways
Amazon dropshipping provides access to a large customer base without excessive marketing costs.
Automation tools enhance inventory management, reducing the risk of selling out-of-stock items.
Reliable suppliers are essential for maintaining product quality and timely dropshipping delivery.
Utilizing Google Trends and ad spy tools can help identify winning products and analyze market demand effectively.
Amazon dropshipping isn’t much different than the traditional dropshipping model. Let’s delve on the fundamentals of this low-risk business model:
We must have an online store and partner with a supplier for any dropshipping business. Once customers purchase in our store, we forward the order to the supplier, who completes the purchase process by packaging and shipping the products.
Dropshipping is easily accessible, mainly because we don’t have to maintain inventory; therefore, we do not need to make significant investments to get our business up and running.
Of course, this implies savings not only in money but also in time; this is one of the characteristics that differentiates it from traditional e-commerce models. On the other hand, we eliminate the worry of being left with unsold inventory or having to rent warehouses or retail spaces.
Let’s look at some of the main benefits and challenges we may encounter in this venture:
Benefits Of Amazon Dropshipping
Access to a large customer base: Remember that we have two types of selling channels for dropshipping: customizable e-commerce sites and marketplaces. Each has its advantages and challenges. Amazon is one of the most popular marketplaces, which gives us the advantage of gaining access to a large customer base. We can reach millions of potential customers without incurring excessive marketing expenses.
Trust and Credibility: Given its reputation, we can imagine that customers will be much more willing to buy from us if we sell through Amazon. Would you feel more confident buying on a recognized and trusted platform or randompage456.net?
Ease of Use: Many people have been using Amazon for dropshipping for some time now, and once we understand its essential functioning, it is much easier to learn and grow within the platform.
Challenges Of Amazon Dropshipping
High Competition: Not everything is rosy; if we said that, we would lie or try to sell you a get-rich scheme. To become wealthy, one must work hard and differentiate oneself from the competition, as the popularity we mentioned above leads many entrepreneurs to venture into Amazon dropshipping.
Supplier Reliability: As mentioned earlier, the success of our dropshipping store heavily depends on the supplier we partner with. If the products customers buy from our store arrive damaged or take longer than promised, we and our brand-new store will suffer the consequences. Therefore, it is crucial to take the time to find suppliers that guarantee reliability.
Beginner’s Tip: Check on our list of trusted suppliers to ensure an excellent relationship between your brand and your customers.
As we can see, when we discuss the challenges of Amazon dropshipping in Australia, we are talking about obstacles similar to those we would encounter in any business—and we cannot give up without trying to overcome them. With the right strategies, these drawbacks can be overcome so that we can continue to grow in the world of e-commerce.
How To Dropship On Amazon Australia
Yes, we know we’ve gone through several paragraphs and still haven’t touched on Australia specifically, but let’s not get impatient! Learning something takes time, and we can’t skip the foundational steps.
Whether you’re in Australia or elsewhere but want to focus your business on this beautiful country, don’t miss what we’ll cover next.
Amazon dropshipping in Australia works as we described earlier. For example, as sellers, we list an inflatable pool for AU$300, and a customer purchases it, paying us upfront. Then, we buy the inflatable pool from the supplier’s website for AU$150 and input the order details so the supplier ships it directly to our customer. In the end, we keep a profit of AU$150.
Yes, Amazon dropshipping in Australia is profitable and a low-risk venture.
Amazon’s Dropshipping Policy
As a rule of thumb, we must always pay attention to the policies of the sites we work with. This will help us avoid account bans or even legal issues. Dropshipping on Amazon is legitimate, but we must consider some factors to avoid mistakes.
First, it is worth mentioning that as dropshippers, we must be listed as the sellers on all packaging and invoices. This means that if the supplier delivers orders with anything identifying them, we must remove it.
We must remember that part of our job is ensuring that everything we sell meets the marketplace’s standards. This involves, among other things, providing quality customer service, being transparent about our delivery times, and keeping our customers happy.
On Amazon and any platform where we do dropshipping, we must always remember not to sell copyrighted products without proper authorization. Selling branded products without legal rights can lead to problems that will not benefit our business.
Is Amazon Dropshipping Legal In Australia?
Yes, Australia allows Amazon dropshipping. Of course, this is not the Wild West, and we must adapt to the policies that regulate e-commerce, just like in any other country. That’s why it’s always a good idea to closely examine everything involving tax obligations and business licenses while we define other aspects of our business.
The primary tax obligations usually include income tax and Goods and Services Tax (GST). Additionally, we must report our brand’s income to the Australian Taxation Office. Regarding business licenses, we must register for an Australian Business Number, which our suppliers will also require to work with us.
Finally, but no less importantly, we must be cautious with illegal products, as selling them could lead to suspension or legal issues. Stay away from:
Copyrighted Brands
Dangerous Weapons
Age-Restricted Products
There is much more to know about dropshipping in Australia, but you absolutely cannot overlook this!
Simple Step By Step Guide On How To Start
Now that we are on the same page regarding the possibility of doing Amazon Dropshipping in Australia let’s delve a bit deeper into the essential steps we need to follow to make your dropshipping business successful:
1. Set Up Your Amazon Account
We must create our Amazon seller account to start dropshipping on this vast marketplace. This involves providing our personal information and going through a verification process to begin selling!
Once our profile is ready, we must choose our Amazon Selling Plan based on our goals and business characteristics. Depending on the units we expect to sell each month, we can select between the following plans:
Individual Plan: There is no fixed monthly fee, but there is a charge of $0.99 for each item sold. This plan is more suitable if we sell occasionally or have a low sales volume.
Professional Plan: There is a fixed monthly fee of approximately $39. This makes it more cost-effective if more than 40 items are sold per month, as it eliminates the per-item selling fee.
2. Find Winning Products
Choosing a good product that sells well among our customers and increases our interactions is an art we must master to stand out from our competition. Below in this article, we will explore different tools you can use to achieve this. Still, it’s essential to understand the significance of focusing on specific products when setting up your store.
While we can choose more than one niche to diversify our strategies, making decisions based on concrete data is always advisable. Demand is one of those factors, and some products sell better during specific times of the year or particular moments. However, demand alone does not make an item a winning product; here are some characteristics of a winning product:
High Demand: Although it may sound obvious, we must recognize it; a trending product, especially if it is consistently so, ensures sustained sales.
Low Competition: A winning product typically has lower competition, making it easier to stand out. Niche products or those with unique features often face less competition.
Good Profit Margins: The product should allow for a healthy profit margin after accounting for shipping, supplier fees, and marketing expenses. Ideally, aim for a markup that provides at least 30% profit.
Quality: A winning product has proven quality backed by previous buyers who categorize it.
At this stage, our task is to find these products through seller pages generated by selling channel automation tools like AutoDS or Spy Tools.
3. Connect Your Store With AutoDS
This is where it gets exciting! We can automate our online store from the start, enhancing business efficiency while freeing up time by resolving processes automatically and reducing errors.
AutoDS offers an easy integration; we simply need to register on the platform and click “Add Store,” where we can choose the type of store we want. Once this step is completed, we must sign in to our Amazon seller center and confirm the connection.
4. Find The Ideal Supplier
In any dropshipping model, the supplier is essential to our success. As they are responsible for connecting with our customers through shipping, much of our brand image relies on the supplier’s performance. If there are errors in shipping or factors such as return policies, we could face bad reviews or lose customers.
Therefore, we must choose a supplier considering some of the following criteria:
Wide Product Range
Various Payment Options
Positive Reviews
Excellent Customer Service
Practical Return, Payment, and Shipping Policies
Later on, we will recommend some of the most advisable suppliers for your Amazon dropshipping in Australia, but you must understand what makes a good supplier.
5. Import Products To Your Store
When we have found the supplier that best fits our business idea and winning product series, it’s time to import them into our store and create Amazon listings. We must be cautious here, as Amazon has specific requirements to follow precisely to avoid violations.
The first step is to sign in to Seller Central and verify the ASIN (Amazon Standard Identification Number) to see if we can sell any product or brand on Amazon. If the ASIN indicates that we cannot sell the product, we must request authorization to sell a specific product or brand.
It’s important to note that we cannot sell branded or “generic” brand products; we need to look for products without branding. If brand approval is required, we will need to follow the necessary steps to obtain it before importing products.
Once this is completed, we can import the products into our store either manually or automatically. While doing it manually is always an option, it is far less efficient than using automation. With the AutoDS Dropshipping Product Importer, we simply paste the product URL and add the ASIN to import the items in seconds.
After that, depending on where they were saved during the import process, our products can be found in the AutoDS Drafts section or the Products section. From there, we can add any necessary details, such as shipping methods, product tags, and other variants.
6. Market Your Amazon Dropshipping Products
Marketing is what will connect our winning products with our audience. Remember that if we have the right product, the most reliable supplier, and the most attractive store, but our customers must be aware of it, everything will be in vain! Therefore, we must refine our marketing strategies to reach the public segment that interests us.
For this, we can partner with influencers related to our niche, leverage social media trends, pay for advertising, and many other initiatives.
It is always recommended that we create organic content that minimally appeals to customers’ emotions and conveys something genuine that influences their purchasing decisions and showcases our brand values.
7. Provide Excellent Customer Service
We must strive to keep our audience happy. The first step to achieving this is to do our job well and fulfill all orders. Being attentive to each order from the moment it enters our site until the product arrives at the buyer’s home generates trust and security in the customer, unlike when they are left in the dark about the status of their purchase.
Of course, order fulfillment is much faster with automation, as it helps us avoid common mistakes when managing many tasks simultaneously. Beyond fulfilling orders, we need open and functional communication channels to address inquiries or concerns from those who choose to buy from us. Additionally, we must demonstrate proactivity and kindness when resolving any issues.
An adverse situation for our business, such as an angry customer due to an error in their order, can be turned around if we act correctly and communicate assertively to offer solutions. In this way, we will avoid losing customers and receiving negative reviews while getting to know our audience better over time.
How To Find Winning Products For Amazon Dropshipping
Earlier, we reviewed some characteristics that transform a random item into a winning product, but how do we find them? Will we be able to reach the end of the rainbow and discover the treasure? Here are some methods to achieve this:
AutoDS Hand-Picked Products Hub
If you are dropshipping or intend to dedicate time to it, you will come across automation sooner or later. Streamlining tedious and exhausting processes in our business can make the store operate much more efficiently, gaining more free time to focus on other aspects.
AutoDS not only offers a comprehensive solution to many of these processes but also provides access to winning products through a curated and constantly updated list so you can boost your store’s sales.
Beginner’s Tip: Our hand-picked products hub and other features are available through our 14-day trial for $1!
Use Google Trends
Google has many valuable features that can be taken advantage of. Google Trends allows us to analyze the demand for different concepts or products so we can see when they sell best, when interest declines, when it rises, what types of people are interested in the product in question, what other related concepts we can leverage, and a wealth of information that, if used well, can lead us to make better decisions.
To use it, we just need to go to the Google Trends landing page and type in a product that interests us. Once we set the period for analyzing demand and the niche from which we want to analyze it, a chart will show how demand fluctuates over the selected time.
Spy On The Competition With Ad Spy Tools
You don’t need to hire a private detective in a long coat to spy on the competition and understand their strategies. You just need to take advantage of the benefits of Spy Tools, which provide insights into the content published on social media by sellers.
This way, we can also evaluate how demand flows and what things we can imitate or avoid so that our business and marketing strategies run smoothly. In this regard, AutoDS can also lend a hand: with our Ads Spy Tool, you can access behind-the-scenes information!
Check On Supplier’s Best Sellers
The most recognized suppliers usually have a section where they rank the best-selling products over a certain period. This is a significant initial step in analyzing which product is ideal for launching our business.
Here, we must consider the difference between global and local suppliers to choose which best fits our conditions. However, we will also give you some recommendations to help when looking for a supplier.
It is worth noting that global suppliers are generally a bit more economically accessible. Taking advantage of this can allow us to invest that budget in other aspects of our business.
Feature
Local Suppliers
Global Suppliers
Shipping Times
Faster shipping times.
Longer shipping times depending on the destination.
Shipping Costs
Lower shipping costs due shorter distances.
Higher shipping costs due to international shipping fees.
Customer Service
Retail
Easy return processes and customer interactions.
More complicated return process.
Product Avalilability
May have limited availability compared to global suppliers.
Access to a broder range of products.
AutoDS Private Suppliers
AutoDS functions as a trusted supplier that can become our main source for our store. It also acts as a link between our business and suppliers recognized for their quality and reputation. You can find both local and global suppliers on a list where each supplier has been carefully selected, so you don’t have to worry about anything!
Additionally, it’s worth mentioning that pricing from global suppliers could often be cheaper, providing more cost-effective options for your inventory. This allows you to maximize your profit margins while maintaining product quality.
Key Features:
Product Sourcing
Winning Products Hub
Instant Product Imports
Price & Stock Monitoring
Pricing Automation
Customized Branding
Fulfilled by AutoDS
Target Australia
Target is a desirable supplier option, ranking among the USA’s top 10 most prominent retailers. As if that weren’t enough, they have a platform exclusively dedicated to Australia!
Target Australia has domestic warehouses and various distribution centers, offering speedy shipping times, which is a key factor when choosing our ideal partner.
Key Features:
Australian warehouse and distribution center
Same-day or 2-day shipping
High-quality products
Free delivery
Easy returns
SHEIN
If your thing is aesthetics and fashion, Shein can be the Robin to your Batman. Ranked as one of the most reliable global suppliers, SHEIN gives us access to a vast stock of affordable products.
Key Features:
Local warehouses
Massive range of fashion products
Fast and low-cost shipping
Easy return policy
Promotional offers and discounts
Catch
This Australian supplier has over 2.5 million products. Their effective logistics make them one of the best options for Amazon dropshipping in Australia. As if that weren’t enough, Catch can integrate with AutoDS, making it much easier to run your business if you choose this supplier.
Key Features:
Dropshipping automation integration with AutoDS
A curated marketplace made for Australians
Large selection of products from multiple categories
Robust local fulfillment
Exclusive member benefits
Alibaba
Alibaba is one of the giants in global dropshipping. For over 20 years, the company has established itself as one of the most reliable and accessible suppliers.
Key Features:
Extensive supplier network
Product customization and branding
Suppliers undergo a verification process
Secured payment methods
Using Amazon As A Supplier For Other Channels
So far, we have discussed using Amazon as your base platform to develop your business. However, if we choose another reliable selling channel, such as Shopify or eBay, Amazon can still function as a good supplier. We can trust that Amazon will fulfill our orders and take advantage of its extensive catalog.
As sellers, we can source products from Amazon’s catalog to list them on our e-commerce platform at a marked-up price. Once a customer purchases something in our store, we will order the identical product from Amazon. Amazon will then ship the product to our customer.
At this point, it is crucial to highlight the role of automation again. It allows us to manage inventory more effectively, reducing the risk of selling products that are out of stock or have similar issues.
A ban on our account can cause us to lose time and money, so we must avoid it at all costs. By using Amazon as a supplier, the Fulfilled By AutoDS feature can greatly assist us in managing our orders and help prevent bans.
By leveraging Amazon as a supplier and utilizing automation tools, we can effectively manage our dropshipping businesses across multiple platforms like eBay and Shopify while minimizing manual tasks and increasing efficiency.
This approach enhances operational efficiency and allows us to focus more on marketing and customer service, ultimately driving business growth.
Frequently Asked Questions
Is Dropshipping On Amazon Australia Profitable?
Yes, dropshipping on Amazon Australia can be profitable, especially if you choose the right products and manage your costs effectively.
Do I Need An ABN (Australian Business Number) To Dropship On Amazon?
Yes, if you are operating a business in Australia, you’ll likely need an ABN for tax purposes and to comply with local regulations.
Can I Use Australian Suppliers For Amazon Dropshipping?
Yes, you can use Australian suppliers for Amazon dropshipping, which can help reduce shipping times and costs.
Conclusion
And as the Looney Tunes would say, “That’s all folks!” at least for this article! We can talk much more about Amazon Dropshipping in Australia, e-commerce, dropshipping, and many other interesting things. But without a doubt, you need to know this if you are looking for or are already on your way to dropshipping in the land of kangaroos.
We recommend checking out some of our articles to continue exploring these topics:
