September 29, 2023


Learn Business From Experience

Do You Want an ABN for Dropshipping in Australia?

4 min read

So that you’ve determined to begin a dropshipping enterprise? So as to make your dropshipping enterprise successful, you must guarantee that you’re taking the best authorized steps to guard it from the start. 

One among these checks consists of 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 right way to get began along 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 way 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. For those who 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 companies which might be linked to Australia’s oblique tax zone
  • Working as an organization beneath the Companies Act

You will need to be aware that making use of for an ABN, registering for Items and Companies Tax (GST), and in search of GST refunds with out assembly the entitlement necessities could lead to 

prosecution or prison prices.

What’s dropshipping?

Dropshipping is a enterprise mannequin the place a web based retailer doesn’t maintain 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 customer support elements 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 amenities, 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 necessary issues to think about are your plan, revenue, and platform.


Have a look at your plan on how you will function your dropshipping actions. Does it element enterprise names, funds and financial institution accounts, and advertising and branding methods for the merchandise you want to dropship? In that case, your dropshipping actions are probably a enterprise; you’ll most likely want an ABN.


Contemplate whether or not or not you plan to make a revenue from dropshipping. Are you planning to promote many merchandise you supply from wholesale suppliers at a better worth than you get hold of them? Moreover, are you planning on recouping supply and different prices by way of this increased worth? In that case, your dropshipping actions are probably a enterprise; you’ll most likely want an ABN.


Take into consideration the platform you need to run your dropshipping actions by way of. Is it a web based house which you pay for, together with issues like a website identify and commercial? In that case, your dropshipping actions are probably a enterprise; you’ll most likely want an ABN.

Primarily, these three key issues, alone or together, will be good indicators that you’ll want an ABN. For those who’re nonetheless having hassle deciding when you want an ABN, take a look at further guidance from the ATO.


In all, dropshipping will be an thrilling exercise to get into. Nevertheless, it’s necessary to determine whether or not you need to do it as a enterprise and, in that case, to get an ABN. Professional-tip: If you’re planning a dropshipping enterprise, you need to think about finally organising a number of companies to seize completely different area of interest markets.

And when you’re seeking to register an ABN, we’re right here to assist. Lawpath gives straightforward on-line registration and expedited utility as a way to deal with your corporation! 

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