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Starting an online store looks simple from the outside. Pick a product, build a website, take orders. And in some ways it is simpler than it used to be.
But the part that trips up most beginners is not the website. It is what happens behind it. Where does the stock come from? How does it get here? What does it really cost by the time it lands in your hands? Plenty of new sellers get excited about a great margin on paper, then get hit with costs they never planned for.
This guide walks through the process properly, with a strong focus on importing from overseas, because for many new Australian sellers that means China.
Start with the product, not the website
Before spending money on anything, get clear on what you are selling and who wants it.
A few questions worth asking first:
- Is there real demand, or is it just a product you like?
- Can you sell it at a price that leaves room for profit after all costs?
- Is it small and light, or bulky and awkward to ship?
- Is it fragile, regulated or seasonal?
Size and weight matter more than most people expect. A light, compact product is cheaper to ship and easier to store. A large item such as furniture can look like a great opportunity until freight and delivery take a bite out of the margin.
It also pays to start narrow. One product or a small range for a clear type of customer is easier to manage than a store that sells everything.
Get the business basics in place
None of this needs to be overcomplicated, but a few things are worth sorting early:
- An ABN. You will need one to run a business and, usually, to import commercially.
- A business structure. Sole trader, company and other options all have different tax and legal outcomes. An accountant can help you choose.
- GST registration. There is a turnover threshold, and you may choose to register earlier. Your accountant can tell you what suits your situation.
- A website platform. Shopify, WooCommerce and others are all common choices. Pick one you can manage yourself.
- A separate business bank account. It keeps your numbers clean and makes tax time much easier.
Local sourcing or overseas: how to think about it
There are two broad options. You can buy from Australian suppliers and wholesalers, or you can import from overseas.
The case for sourcing locally
Local suppliers are often easier to deal with, especially at the beginning. You get:
- Shorter lead times
- No customs process or import taxes to manage
- Easier communication and returns
- Lower minimum order quantities in some cases
The trade off is usually price. Buying locally tends to cost more per unit, which squeezes your margin. And since many Australian wholesalers import their own stock, you are often paying for a middleman.
The case for importing
Importing directly lets you buy closer to the source. The cost per unit can be much lower, there is more choice, and you can create your own branded or customised products.
The trade off is complexity. You will deal with long lead times, larger minimum orders, shipping, customs, product rules, currency changes and quality control. It is very doable, but it needs more planning.
For many new sellers, a sensible path is to start with a small test order, either from overseas or from a local supplier, and build up as you learn. There is no single right answer here.
Sourcing from China: what it really takes
China remains one of the most common places for Australian ecommerce sellers to source products, because of the range, the price and the manufacturing capacity. Here is a practical way to approach it.
Finding and checking suppliers
Online marketplaces such as Alibaba, Made in China and Global Sources are popular starting points. Trade fairs, in person or online, are another route.
A few habits that help:
- Contact several suppliers. Compare prices, communication and minimum order quantities.
- Ask whether they are a factory or a trading company. Both can work, but you should know which one you are dealing with.
- Always order samples first. It is cheap insurance.
- Check reviews, business licences and past export experience.
- Be wary of prices that look too good. They usually are.
Communication is a good early test. If a supplier is slow, vague or dodges questions before any money has changed hands, that rarely improves afterwards.
Payment and quality control
Paying everything upfront to an unknown supplier is a risk. A common arrangement is a deposit to start production and the balance before shipping, but terms vary. Use a payment method that offers some protection where possible.
Before the goods leave the factory, consider a third party inspection. It can feel like an extra cost, but it is far cheaper than discovering a faulty batch after it has landed in Australia.
Know the rules before you buy
This is the area new importers most often overlook. Some products have mandatory safety or information standards in Australia, and some are banned altogether. As the importer, you are generally responsible for making sure what you sell is compliant, even if the factory says it is fine.
The ACCC explains these responsibilities on its product safety page for businesses, including checking mandatory standards and bans, and not selling products that fail them. Children’s products, electrical items and cosmetics are examples of categories that often need extra care.
There are also border rules. Some goods need a permit, and biosecurity requirements apply to a range of items, including timber, food and some packaging. The Australian Government’s guide to importing and your business is a solid place to start, and it also recommends using a licensed customs broker.
Work out your real landed cost
This is the number that decides whether the business makes money. The price on the supplier’s quote is only the start. A realistic landed cost includes:
- The product cost
- Packaging and any branding or customisation
- International freight
- Insurance
- Customs duty (for many goods this is a modest percentage, but it varies by product)
- GST on imports
- Port, terminal and customs clearance charges
- Delivery to your warehouse or storage
- Currency exchange costs
Imports valued under a certain threshold are treated differently from larger commercial shipments, so it is worth checking how the rules apply to your order size and goods. Rules and thresholds can change, so confirm the current details with the Australian Border Force or a freight forwarder before committing to an order.
A simple habit is to build a spreadsheet for every product, then add a buffer for things that go wrong. Something almost always does.
Choose the right shipping method
Broadly, there are three options:
- Air freight. Faster and more expensive, good for small, light, high value or urgent goods.
- Sea freight. Slower but far more economical for larger volumes. You can book a share of a container (LCL) or a full container (FCL).
- Express courier. Convenient for samples and small orders, but costly per kilo.
For most ecommerce sellers, sea freight makes sense once volumes grow, and air freight works well for early tests and restocking when stock runs low. Timing matters too. Factory closures around Chinese New Year and the rush before Christmas can stretch lead times, so orders should be planned well ahead.
Why a professional freight forwarder is worth having
One of the most common mistakes new importers make is trying to handle everything alone, then discovering that shipping is its own world with its own language. Incoterms, bills of lading, customs entries, container loading, demurrage. It can get overwhelming quickly.
A professional freight forwarder, such as Pivot Freight, takes care of that side of things and guides you through it. In general, a good forwarder can:
- Quote and book shipments by air or sea
- Advise on the best routing and shipping method for your goods
- Help with the documents required for export from China and import into Australia
- Coordinate customs clearance, either directly or through a licensed customs broker
- Explain duty, GST and other charges before they come as a surprise
- Arrange delivery to your door or warehouse
- Help you understand your Incoterms, which decide who pays for and manages each leg of the journey
The big benefit for a beginner is not only saving time. It is avoiding costly mistakes. A wrong document, an incorrect product classification or a misunderstanding about who pays for what can hold up a shipment and rack up storage fees.
The best time to talk to a forwarder is before the first order is placed, not after. They can explain what shipping is likely to cost, whether a product needs a permit and how long the journey will really take. That information can change your pricing or even your choice of product.
A few more practical tips
Some things that do not get said enough:
- Start small. A smaller first order costs more per unit, but it is a much cheaper way to learn.
- Protect your cash flow. Inventory ties up money, and slow moving stock can hurt more than a low margin.
- Plan for delays. Global shipping is unpredictable. Keep a buffer of stock and set realistic delivery messages for customers.
- Think about storage and fulfilment. Will stock be stored at home, in a small rented space or with a third party logistics provider? Decide before the cartons arrive.
- Be clear on returns. Australian Consumer Law applies to what you sell, so have a policy that reflects it.
- Track everything. Costs, lead times, supplier performance and customer feedback all guide the next order.
- Build a second supplier. Relying on one factory is risky. Even a backup you only order from occasionally gives you options.
Starting an ecommerce business is not about getting everything perfect on day one. Many successful sellers began with one product, a modest order and a lot of questions, then improved with each shipment.
Get the numbers right, check the rules for your product, choose suppliers carefully and bring in the right people for the parts you cannot do yourself. The first container landing safely in Australia is a good feeling, and the second one is easier.
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