September 22, 2023

So that you’ve determined to start out a dropshipping enterprise? As a way to make your dropshipping enterprise successful, you could guarantee that you’re taking the appropriate authorized steps to guard it from the start. 

One in all 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 methods 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 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):

  • Participating 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 beneath the Firms Act

It is very important be aware that making use of for an ABN, registering for Items and Companies Tax (GST), and searching for GST refunds with out assembly the entitlement necessities could end in 

prosecution or prison costs.

What’s dropshipping?

Dropshipping is a enterprise mannequin the place an internet 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 shopper. 

The retailer acts as a intermediary, dealing with the enterprise’s advertising and marketing and customer support points 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 shortage 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 necessary issues to think about are your plan, revenue, and platform.


Take a look at your plan on how you’ll 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 possible a enterprise; you’ll most likely want an ABN.


Think about 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 a better value than you receive them? Moreover, are you planning on recouping supply and different prices by way of this greater value? In that case, your dropshipping actions are possible a enterprise; you’ll most likely want an ABN.


Take into consideration the platform you wish to run your dropshipping actions by way of. Is it an internet area which you pay for, together with issues like a site identify and commercial? In that case, your dropshipping actions are possible a enterprise; you’ll most likely want an ABN.

Primarily, these three key issues, alone or together, may be good indicators that you will want an ABN. For those who’re nonetheless having bother deciding for those who want an ABN, try further guidance from the ATO.


In all, dropshipping may be an thrilling exercise to get into. Nonetheless, it’s necessary to establish whether or not you wish to do it as a enterprise and, in that case, to get an ABN. Professional-tip: In case you are planning a dropshipping enterprise, it is best to take into account finally organising a number of companies to seize totally different area of interest markets.

And for those who’re trying to register an ABN, we’re right here to assist. Lawpath presents straightforward on-line registration and expedited utility as a way to deal with what you are promoting!