October 1, 2023


Move Step By Step

Do You Want an ABN for Dropshipping in Australia?

4 min read

So that you’ve determined to begin a dropshipping enterprise? With a view to make your dropshipping enterprise successful, it’s essential to guarantee that you’re taking the fitting authorized steps to guard it from the start. 

Considered one of these checks contains getting began with an Australian Enterprise Quantity or ABN. However does your dropshipping enterprise wants an ABN, or are you able to do with out it? Since “Dropshipping” is a comparatively new means of shopping for and promoting merchandise on-line, many entrepreneurs nonetheless lack sufficient insights into the above questions. 

On this article, we’ll cowl whether or not you want an ABN for dropshipping enterprise and the best way to get began together with your ABN utility in Australia. 

Learn alongside! 

What’s an Australian Enterprise Quantity (ABN)?

An ABN is a singular eleven-digit quantity which identifies registered companies in Australia. This quantity is obtained by means of the Australian Taxation Workplace (ATO). Having an ABN is a authorized requirement to run a enterprise in Australia. That is true whether or not you use as a sole dealer, a partnership, or an organization. 

Who wants an Australian Enterprise Quantity (ABN)?

Not everybody wants an ABN. In the event you meet any of the next standards, you might be eligible to acquire an Australian Enterprise Quantity (ABN):

  • Partaking in or commencing a enterprise enterprise inside Australia
  • Offering items or providers which can be linked to Australia’s oblique tax zone
  • Working as an organization underneath the Companies Act

It is very important word that making use of for an ABN, registering for Items and Providers Tax (GST), and looking for GST refunds with out assembly the entitlement necessities might end in 

prosecution or prison expenses.

What’s dropshipping?

Dropshipping is a enterprise mannequin the place a web-based retailer doesn’t preserve merchandise in inventory however as a substitute transfers buyer orders and cargo particulars to the producer, wholesaler, or one other retailer, who then ships the merchandise on to the client. 

The retailer acts as a intermediary, dealing with the enterprise’s advertising and marketing and customer support features whereas avoiding the necessity to deal with stock or handle fulfilment logistics. This mannequin permits entrepreneurs to begin an e-commerce enterprise with minimal upfront prices and stock dangers.

Do You Want an Australian Enterprise Quantity (ABN) for dropshipping?

Given the dearth of stock, stock administration services, a storefront, and different conventional options of a enterprise concerned in dropshipping, it may be tough to know if it even counts as a enterprise. The vital issues to contemplate are your plan, revenue, and platform.


Have a look at your plan on how you’re going to function your dropshipping actions. Does it element enterprise names, funds and financial institution accounts, and advertising and marketing and branding methods for the merchandise you want to dropship? In that case, your dropshipping actions are seemingly a enterprise; you’ll in all probability want an ABN.


Contemplate whether or not or not you propose to make a revenue from dropshipping. Are you planning to promote many merchandise you supply from wholesale suppliers at the next value than you acquire them? Moreover, are you planning on recouping supply and different prices by means of this greater value? In that case, your dropshipping actions are seemingly a enterprise; you’ll in all probability want an ABN.


Take into consideration the platform you wish to run your dropshipping actions by means of. Is it a web-based area which you pay for, together with issues like a site identify and commercial? In that case, your dropshipping actions are seemingly a enterprise; you’ll in all probability want an ABN.

Basically, these three key concerns, alone or together, could be good indicators that you’ll want an ABN. In the event you’re nonetheless having hassle deciding in case you want an ABN, try further guidance from the ATO.


In all, dropshipping could be an thrilling exercise to get into. Nevertheless, it’s vital to determine whether or not you wish to do it as a enterprise and, in that case, to get an ABN. Professional-tip: If you’re planning a dropshipping enterprise, you must contemplate ultimately organising a number of companies to seize completely different area of interest markets.

And in case you’re trying to register an ABN, we’re right here to assist. Lawpath presents straightforward on-line registration and expedited utility so as to give attention to your online business! 

Copyright © All rights reserved. | Newsphere by AF themes.