How to Find Dropshipping Suppliers in Australia

For small to medium e-commerce businesses, dropshipping can be a real game-changer. Get it right, and you can become a trusted vendor and have an efficient online business. But, if you partner with unreliable dropshipping suppliers, it can cause backorders and delays, damage your reputation, and affect your bottom line. 

So, to help you find the right dropshipping suppliers to support your small or self-employed business, this article will explore everything you need to know, including what exactly dropshipping is, how to find good dropshipping suppliers, and how to simplify your dropshipping management and finances.

What is dropshipping?

Dropshipping is a business model that allows vendors to sell products without having to keep them in stock. 

Rather than buying the inventory upfront, an e-commerce business will advertise the product on its website and then order it from a third-party supplier once a customer makes a purchase. The dropshipping supplier then ships the item directly to the customer.

Dropshipping can be a very effective model for entrepreneurs and small businesses, with advantages including:

• Low startup costs 
• No storage costs
• No shipping costs
• Access to a wider product selection (and the flexibility to pivot with market trends)
• Location flexibility (you can operate from anywhere with an internet connection)
• Scalability (you can have multiple dropshipping suppliers or increase your orders with the same trusted supplier to meet growing customer demands)

What is a dropshipping supplier?

A dropshipping supplier is a company that stores, packs, and ships products on behalf of online retailers. They take care of all storage and logistics and make their money by charging e-commerce businesses a higher price than the original cost, but lower than the eventual retail price.

If you choose to start a small business with this model, you’ll need a reliable dropshipping supplier that charges a fair price. Some charge a per-order fee while others charge a monthly subscription. Some dropshipping suppliers also provide extra services like custom packaging and branding. 

Whichever Australian dropshipping suppliers you choose, make sure you understand their pricing structure so you don’t get caught out by unexpected fees that affect your profit margin. 

What’s the difference between wholesalers and dropshipping suppliers?

To understand what you’re being charged for, it’s also helpful to understand the difference between the various types of companies on the supply chain – manufacturers, wholesalers, and third-party suppliers.

• Manufacturers make the products from raw materials and sell them in bulk and at their lowest price to wholesalers and retailers.
• Wholesalers buy products in bulk from manufacturers and sell them to retailers and third-party suppliers at a price that’s higher than manufacturing but lower than retail.
• Dropshipping suppliers (third-party suppliers) store, pack, and ship products for online sellers at a price that’s higher than wholesale but still lower than retail.

The importance of choosing the right dropship suppliers in Australia

Your dropshipping supplier directly impacts your product quality, shipping speed, and overall customer satisfaction. So, if you’re running a new or small business, finding the right dropshipping supplier is essential to your success.

How to find dropshipping suppliers you can rely on

So, you understand the importance of finding a good partner, but how do you find a dropshipping supplier that delivers high-quality products, on time, and for a good price?

Use online supplier directories

There are many global directories designed to connect dropship companies with suppliers. And if you’re looking for dropship suppliers in Australia specifically, take a look at the Australian Dropshippers Directory.

Leverage supplier marketplaces

Popular and reputable marketplaces like SaleHoo, Spocket, and Syncee can also help connect you with quality suppliers.

Attend trade shows and industry events

Expos and conferences like the Online Retailer Conference are great for networking with like-minded entrepreneurs as well as learning about suppliers, strategies, and products that could help streamline and grow your business operations. 

Research competitor suppliers

Dropshipping suppliers don’t work exclusively with one business – they supply to all sorts of online stores. So, if your competitors are getting good service from their dropshipping supplier, why not follow their lead?

Check out Australian online marketplaces

Take a look at popular marketplaces like Amazon Australia and eBay Australia to see which dropshipping suppliers and wholesalers are supplying services in your niche.

Contact manufacturers directly

Manufacturers sell their products to wholesalers and dropshipping suppliers. So, why not ask them which vendors they trust? Or, depending on their business structure, they might offer a direct dropshipping service. To find manufacturers open to this, look out for suppliers offering wholesale or B2B (business-to-business) on e-commerce platforms.

Consult forums and social media communities

If you’re wondering how to find dropshipping suppliers in Australia, you can bet that plenty of other people have been in the same boat. Check platforms like Reddit for threads around dropshipping and join Facebook groups aimed at entrepreneurs in your local area or niche for advice and recommendations.

How to know which dropshipping supplier is the best

There are plenty of suppliers out there and plenty of ways to find them. But once you’ve found some options, how can you be sure they’re any good?

To help you find the best supplier for your business, here are a few key factors to evaluate:

• Product Quality and Consistency: The quality of the products you get from your dropshipping supplier directly affects your reputation in your chosen market. So, make sure they can deliver good products from trusted manufacturers.
• Shipping and Delivery Times: Your ability to deliver quickly and efficiently to your customers is key. So, you need a dropshipping supplier who can deliver within a reasonable timeframe, and with trackable shipping options. You can test this by ordering sample products and monitoring how quickly they arrive. It also helps to look for suppliers with a local warehouse.
• Pricing and Profit Margins: Different dropshipping suppliers have different pricing structures. Don’t just go with the first company you find. Make a few enquiries, compare pricing, and evaluate how that would affect your profit margin. But, beware of super cheap dropshipping suppliers as this could affect quality and delivery – if it seems too good to be true, it probably is!
• Return and Refund Policies: The ability to return products is essential to the customer experience. But, it can also affect your bottom line. If your dropshipping supplier doesn’t have a decent return and refund policy, you could end up taking the financial hit whenever a customer isn’t happy with their purchase.
• Customer Support and Responsiveness: If something goes wrong, you need to trust that you—and your customers—will receive an efficient and effective response. To test this, contact potential dropshipping suppliers via phone, e-mail, and other customer service methods to test their response time and helpfulness. It also helps to check reviews and customer ratings on various platforms.
• Integration with E-Commerce Platforms: Dependable dropshipping suppliers will have apps or plugins that integrate with popular platforms like Shopify, Spocket, and Amazon Australia. Larger suppliers may also have their own API. Either way, you want to find a dropshipping supplier that can streamline operations by providing automated product imports, inventory syncing, and order processing.

Common mistakes to avoid when choosing Australian dropshipping suppliers

There are plenty of excellent suppliers out there. But, with so many to choose from, it’s easy to take a wrong turn and end up with an unreliable partner. So, to make sure you stay on track, be mindful not to make any of these common mistakes:

• Choosing the cheapest supplier: The cheapest supplier might give you the biggest profit margin, but if they have poor quality or unreliable service, it will negatively affect your profits in the long run.
• Not doing quality checks: Committing to a supplier without checking the quality of their products, speed of service, and customer support methods is a risk you don’t need to take.
• Ignoring supplier contracts and agreements: Make sure you read the fine print and fully understand what you’re committing to. From pricing structures to refund policies, pay attention to every detail.
• Not verifying shipping policies and times: The timeliness of product delivery is essential to your customer experience, reputation, and bottom line. Make sure you check and test your dropshipping supplier’s delivery policies before you commit to anything in the long term.
• Not having a contingency plan for out-of-stock products: If you don’t handle these situations properly, you’ll experience delays, cancellations, and negative customer reviews. Having a contingency plan in place is therefore key to minimising disruptions, maintaining customer trust, and avoiding financial losses.

Integrating dropshipping suppliers with e-commerce platforms 

Integrating your dropshipping suppliers with e-commerce platforms helps automate crucial operations like financial tracking, inventory management, and order processing. With these processes handled seamlessly through automation, you can lower your risk of errors, streamline operations, and scale your business quickly to meet customer demand.

How to integrate dropshipping suppliers with QuickBooks

There are a few different ways you can sync your dropshipping supplier with QuickBooks:

1. Direct Integration via QuickBooks Apps

Some dropshipping platforms and suppliers like Syncee offer built-in QuickBooks integration, which automatically syncs sales transactions, purchase orders, inventory updates, and supplier invoices.

To integrate QuickBooks with these platforms, check for QuickBooks in the app store, install the plugin, and connect it to your QuickBooks Online account.

2. Use Third-Party Automation Tools

If direct integration with QuickBooks isn’t available, you can use automation tools like:

• Zapier – Connects dropshipping apps (e.g., Shopify, WooCommerce) with QuickBooks.
• Webgility – Syncs e-commerce sales and supplier transactions with QuickBooks.
• A2X Accounting – Automates Amazon and Shopify sales reconciliation in QuickBooks.

Once you’re synced with QuickBooks, make sure supplier transactions are recorded under “Cost of Goods Sold (COGS)”.

3. Manually Import Supplier Invoices & Orders

If integration isn’t an option, you can export files from your supplier and import them into QuickBooks. 

To do this, download your supplier invoices in CSV format, go to QuickBooks Online > Transactions > Expenses > Import Data, upload the file, and then categorise the transactions.

Managing finances and cash flow in a dropshipping business

Whether you’re running a small side hustle or growing a lucrative dropshipping business, it’s important to stay on top of your cash flow, compliance, and tax obligations.

Some key points to consider are:

• Register for an Australian Business Number (ABN): You must have an ABN to legally operate, report taxes, invoice, and claim deductions. You can apply for an ABN with the Australian Business Register (ABR).
• Goods and Services Tax (GST): If your sales exceed AUD$75,000 per year, you must register for GST, charge 10% GST on Australian orders, and file Business Activity Statements (BAS) regularly. GST can get complicated depending on the location of customers and suppliers, so it’s always worth checking the Australian Tax Office's guidelines.
• Income Tax: Sole Traders & Small Businesses must report their dropshipping income on their individual tax returns. Meanwhile, Companies (Pty Ltd) are taxed at the corporate tax rate (usually 25%-30%).
• Business Deductions: You can reduce your taxable income by claiming business deductions for operating costs, supplier and product costs, and office expenses. This can include e-commerce platform fees, advertising costs, custom and import duties, and accounting software like QuickBooks.

Staying on top of your record keeping and tax reporting is essential to your survival and profits as a dropshipping business. Automating bookkeeping, invoicing, and financial reporting using online accounting software like QuickBooks can help you achieve this efficiently and effectively. It also frees up your time and energy to focus on business growth.

How QuickBooks Can Streamline Your Dropshipping Finances

QuickBooks simplifies finance management for dropshipping businesses through automated financial tracking and tax preparation. It can manage multiple supplier payments efficiently as well as track profit margins and cash flow in real-time. 

To augment your dropshipping business with QuickBooks, take a look at our e-commerce accounting software. Try our free 30-day trial now or contact our friendly experts for help finding the best solutions for your business.