Drop shipping is a retail fulfillment method where the seller does not have to purchase the products they are selling. Instead, when a customer purchases the product, the seller or the store purchases the item from a third party and ships it directly to the customer. The seller is not responsible for handling the product. 

Thus, the main difference between the dropshipping retailing method and the usual retail method is that the seller does not have to keep inventories of the items. 

In Sydney, Australia, drop shipping is a promising retail method for entrepreneurs who are looking to start their businesses. Dropshipping is legal in Australia; however, the seller must ensure that the products can be legally sold in Australia. The seller must also comply with the Australian Consumer Law as well as the Competition and Consumer Act. 

The major benefit of dropshipping in Sydney is that it is possible to launch an online store (e-commerce store) without investing thousands of dollars of capital. The nature of the dropshipping retail method allows entrepreneurs to source products online without incurring significant investment costs. As there is no requirement of keeping a physical inventory, there is less risk involved for the entrepreneur. Warehouse management, tracking inventory, and managing stock levels are no longer required hence, investment is low and it is relatively easy to set up a business through dropshipping. 

Additionally, there is flexibility in operations as a dropshipping business can run from anywhere, as long as there is an internet connection. Not only can you sell a wide variety of items, but you can do it from wherever you want, as long as it is possible for you to communicate with suppliers and other relevant stakeholders. 

However, one of the drawbacks of dropshipping is that businesses in this industry operate at very low margins. Many dropshipping businesses sell products at very low prices in an attempt to grow revenue; price comparisons by customers tend to increase the competitiveness of the industry as well. Additionally, supplier errors can lead to shipping issues and customer service problems. Sourcing from external suppliers is also risky as you may have to place all bets on third-party suppliers over whom you have no control. 

In Australia, the dropshipping industry is expected to reach $15.44 billion in 2021. It is a fast-growing industry, with numerous wholesalers and manufacturers on board. In Sydney, dropshipping businesses have found success by focusing on reliable suppliers and running frequent ads on social media platforms. The model has its pros and cons but is surely a growing industry in Australia. Contact us for more information