Find and vet dropship suppliers

The products you sell and the suppliers who ship them shape everything about your store: your margins, your delivery times, your refund rate and your legal risk. A great website can't make up for a supplier who ships late or a product that breaks after a week.

This section explains how to find suppliers, how to vet them, what changes when goods come from overseas, and how to make sure your products meet Australian safety rules. We don't recommend particular suppliers or platforms. Instead, we give you a process and the official sources you need to check any supplier for yourself.

Guides in this section

• How to choose a dropship supplier Types of suppliers, Australian versus overseas, where to look, how to verify a business, samples, questions to ask, agreements and red flags.
• Overseas suppliers, imports, duty and GST The A$1,000 threshold, GST on low value goods, customs duty, prohibited and restricted goods, biosecurity and counterfeits.
• Product safety, standards and banned products Mandatory standards, bans, button batteries, electrical goods, recalls and the two-day mandatory reporting rule.

A simple supplier process

Step 1: Shortlist

Find at least two potential suppliers for each product you plan to sell. Look beyond the first results on a dropship app. Contact manufacturers and wholesalers directly, attend trade shows, and ask other store owners for referrals.

Step 2: Verify

Check that each supplier is a real business. For Australian suppliers, the government's free ABN Lookup confirms the business name, ABN status and location. For any supplier, look for a physical address, working contact details, a trading history and clear terms.

Step 3: Sample

Order the product as a customer would. Check quality, packaging, labelling and the full delivery time from order to door. Compare it carefully with the photos and description you plan to use.

Step 4: Check the rules

Before listing, check:

• product safety: mandatory standards, bans and recalls on Product Safety Australia;
• import rules for overseas goods: ABF prohibited and restricted goods and BICON biosecurity conditions;
• intellectual property: that branded goods are genuine and you can use the images.

Step 5: Agree terms

Put the key terms in writing: prices, stock updates, dispatch times, packaging, faulty goods, returns, compliance documents and liability.

Step 6: Monitor

Track dispatch time, delivery time, error rates and stock accuracy for every supplier. Review monthly and keep a backup for your best sellers.

Local or overseas?

Australian suppliers usually offer faster delivery, simpler returns and easier compliance checks, but often at higher prices. Overseas suppliers can offer lower prices and wider ranges, but delivery is slower and less predictable, and you need to think about import rules, GST and safety standards.

Many successful stores combine both: overseas suppliers for testing new products, then local suppliers or local stock for proven best sellers. Whatever mix you choose, be honest with customers about where items ship from and how long delivery takes.

Products to approach with care

Some categories carry more legal and safety risk. Before selling any of these, read our product safety guide and check the official sources:

• toys and products for babies and young children;
• anything containing button or coin batteries;
• electrical goods, chargers and power boards;
• cosmetics and skincare;
• helmets and protective equipment;
• plant, seed, food and natural-fibre products from overseas;
• anything that could be considered a weapon;
• branded goods from unofficial sources.

If you can't confirm compliance, don't list the product.

Protecting yourself from scams

Scamwatch warns about fake online businesses, including fake suppliers. Protect yourself by:

• verifying business details independently;
• starting with small orders;
• paying through methods that offer some protection;
• being wary of pressure, urgency and requests for gift cards, cryptocurrency or unusual transfers;
• treating unbelievably low prices on branded goods as a warning sign.

When to move beyond dropshipping

As products prove themselves, you may want more control. Options include buying stock to hold in Australia, using a third-party logistics provider, or working with a manufacturer on your own branded product. These involve more upfront cost and import considerations, but can improve delivery times, packaging and margins.

Questions to ask yourself before listing a product

1. Can I describe it accurately and honestly?
2. Does it comply with all Australian safety standards and bans?
3. Is it legal to import, without permits or biosecurity problems?
4. Is the supplier verified, with samples checked?
5. Can I quote a realistic delivery time?
6. Does the price leave a profit after every cost?
7. Can I handle faults and returns smoothly?

If the answer to any of these is no, fix the problem or choose a different product.

Key points

Shortlist at least two suppliers per product, verify their details, order samples and check product safety, import and IP rules before you list. Put terms in writing, monitor performance and keep a backup. Combine local and overseas suppliers thoughtfully, be honest about delivery, and avoid high-risk products unless you can confirm compliance.