Do You Want an ABN for Dropshipping in Australia?

So that you’ve determined to start out a dropshipping enterprise? With a purpose to make your dropshipping enterprise successful, it is advisable guarantee that you’re taking the suitable authorized steps to guard it from the start. 

One in every of 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 easy methods 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 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 case you meet any of the next standards, you’re 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

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

prosecution or felony fees.

What’s dropshipping?

Dropshipping is a enterprise mannequin the place a web-based retailer doesn’t hold merchandise in inventory however as an alternative 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 start out 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 troublesome to know if it even counts as a enterprise. The essential issues to contemplate are your plan, revenue, and platform.


Take 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? If that’s the case, your dropshipping actions are doubtless 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 this greater worth? If that’s the case, your dropshipping actions are doubtless a enterprise; you’ll most likely want an ABN.


Take into consideration the platform you wish to run your dropshipping actions by. Is it a web-based area which you pay for, together with issues like a site title and commercial? If that’s the case, your dropshipping actions are doubtless a enterprise; you’ll most likely want an ABN.

Primarily, these three key issues, alone or together, may be good indicators that you’ll want an ABN. In case you’re nonetheless having hassle deciding should you want an ABN, take a look at further guidance from the ATO.


In all, dropshipping may be an thrilling exercise to get into. Nevertheless, it’s essential to establish whether or not you wish to do it as a enterprise and, if that’s the case, to get an ABN. Professional-tip: If you’re planning a dropshipping enterprise, you must think about ultimately establishing a number of companies to seize completely different area of interest markets.

And should you’re seeking to register an ABN, we’re right here to assist. Lawpath provides straightforward on-line registration and expedited utility so to deal with your small business!