Protect Ourselves: Australian Owned Businesses and Dropshipping

When buying online it’s a good idea to check-up on the ‘credentials’ of the business we are going to deal with to try to avoid problems after our purchase.
Australian Owned seems to be a good choice, in fact that label is only about ‘the owner/s’ of the business:

‘Australian Owned’ concentrates on the owner/s of a business:

finance. gov. au
From 17 November 2025, the Commonwealth Procurement Rules (CPRs) includes the following definitions for Australian and New Zealand businesses.
An Australian business is a business, including any parent business, that has 50% or more Australian ownership, or is principally traded on an Australian equities market; and is an Australian resident for tax purposes; and is a business that has its principal place of business in Australia.

(Note that only 50%, used to be 80%, need to comply with the above rules.)

Can be just a simple drop-ship operation where merchandise comes from overseas, and the Australian workforce is not involved in the ‘making’ of the products. It does not mean ‘Australian Made’ (although Aus. Made may use imported materials).

Dropshipping:
Before the Internet, Mail-Order companies would usually forward the customer’s order form (included in the Catalogue) and the mailing address to the manufacturer who would then handle the shipping.

Nowadays the system most used is the online purchase:

  • The customer buys from an online store (the Seller).
  • The Seller doesn’t manage stock, doesn’t invest in inventory, can run the business from anywhere with an Internet connection, as long as the supplier can handle shipments worldwide.
  • The Seller forwards the order to a manufacturer or wholesaler (the Supplier) who ships the product directly to the customer.

Becoming more common is the hybrid model of the manufacturer also running a direct to consumer dropshipping.

Dropshipping is used also by brick&mortar stores to bypass holding a lot of stock in a warehouse, offering many more products in colour, size, model, that can be physically stocked, reducing overheads, only pay for a products after it is sold.

From the customer point of view a lot depends on the ‘quality’ of the Supplier, it impacts from product quality to delivery times.

We can tell from the T&C and the FAQ of the Seller about some of the most important factors to look for:

  • Return/Refund policies

  • Delivery details

  • Multiple methods of Contact (Email, chat, phone)

  • Liability limitations

  • Pricing accuracy

To check the Seller:

  • Details of a warehouse

  • Manufacturing’s facilities

  • Long Company history in Australia

  • Delivery times 1-3 days (local stock)

  • Australian Return address

From ACCC:

7 Likes

I purchased a set of sheets from the Lad Collective thinking I was supporting and helping an Australian business only to find the sheets are made in China. They were not a cheap set of sheets, but I was prepared to pay extra to support an Australian business, so I was extremely upset when I opened them to find they were made in China. I have learnt from this and will in future contact a company to find out where the article/item is made.

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Yes, easy to think that an Australian company automatically means manufactured in Australia. I started this topic because of posters asking ‘what to do’ after having problems with products which they thought were made locally but instead have to be shipped overseas for returns.
Unfortunately we now have very few manufacturers here, in particular mattresses, furniture, bedding..
The Lad Collective company advertises heavily as being a locally owned direct-to-consumer business but you have to ‘look’ for the place where the merchandise is made: it’s in the FAQ section as shown on the photo below.
Most of the important information for consumers is in the T&C, Return and Exchange, Privacy Policy, FAQ, and Contact.

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I bought a fabulous rain poncho from a W.A. Company… its a family business, and the poncho cost nearly $200, but it was not made in Australia, merely designed here. They don’t dropship, but the ponchos are made in (IIRC) Thailand. I may have made a different decision if I had researched more thoroughly.

3 Likes