Anyone Have Any Experience Dropshipping?

subywagon on 28/06/2016 - 01:46
Last edited 28/06/2016 - 10:54 by 1 other user

I'm wondering if anyone out there has any experience with dropshipping? I'm considering giving it a go myself. I'm a web designer and can make create web sites and e-commerce sites with ease, but my problem is I've got nothing to sell!

I'm thinking about using Aliexpress. I'd prefer to be able to start with no money down simply list the items on my site, then fulfil an order once a purchase is made.

So I'd love any advice, experience or anything else you'd like to share regarding dropshipping.

Thanks in advance for any input!

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  Maki on 28/06/2016 - 08:25

  I sort of tried, but wasn't very successful. The problems were: you can't ensure the quality of the product, and it's hard if the customer wants to return. Moreover, I guess most of the drop shippings were done overseas, there'll be a huge delay for delivery compare to those shops in Australia.

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  smellyhead on 28/06/2016 - 08:26

  +1

  It's my go to strat when I play Terran.

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  robertbruce on 28/06/2016 - 09:02

  dropshipping with bricks will work as long as the distributors stay unnationalised unrationalised, however they are starting to contract now… In a small industrial area that is local to me, I have seen two automotive parts suppliers (with bricks) flourish, they are pretty safe, the distributors don't care.

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  Zythyx on 28/06/2016 - 09:12

  Since you know how to set up a website and maintain it, the cost would be fairly low to initialise. You may want to consider an ABN to legitimise the business.

  I was reading somewhere that whitegoods had good profit margins when dropshipping, although that was a few years ago.

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  subywagon on 28/06/2016 - 11:11

  Thanks for the replies guys.

  Long delivery times is one of my biggest issues with dropshipping along with finding a reliable supplier and product.

  @tidus4eva, I already have an ABN being a freelance designer.

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  [Deactivated] on 28/06/2016 - 12:53

  -3

  Major issue with dropshipping is the tax. You may make 100k in sales an the profit is 15k, but you need to pay tax on the 100k. Seen so many people go backwards so be careful dropshipping :)

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    subywagon on 28/06/2016 - 17:26

    I can't see how that would work? (I didn't down vote you by the way, I appreciate all input!)

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      [Deactivated] on 28/06/2016 - 17:37

      +1

      Tax is on total taxable income, its like any business. You don't just pay tax on the profit, you pay on total income. With drop shipping as there isn't a big margin like there are with inventories, there lies the issue. Unsure why the neg when its correct lol.
      Obviously so many variances with tax exemptions, gst, write offs etc, I am just talking the very basics.

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  klftpg on 28/06/2016 - 17:52

  But isn't taxable income gross income less expenses? Wouldn't most of that 100k be an expense because that's what it costs you to acquire the item to sell to make a profit?

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  robertbruce on 28/06/2016 - 19:59

  there are new(ish) tax rules for online sellers, 75K turnover and you need full corporate tax regime… the accountants appointment is prolly going to cost the first months turnover

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  Teamoryx on 26/09/2022 - 20:51

  pm sent re drop shipping if you can please check your messages.