Looking for a low-risk way to start an online business in New Zealand? Dropshipping might be the perfect entry point. In a dropshipping business, you sell products online without holding any inventory. When a customer places an order, a third-party supplier ships the product directly to them — you keep the margin.
It sounds simple, and it can be — but to succeed long-term, you need smart setup, good suppliers, and an understanding of your financial and legal obligations in NZ.
This guide walks you through everything you need to know to get started with dropshipping in New Zealand:
- What is dropshipping?
- Pros of dropshipping
- Cons to watch out for
- Step-by-step: How to start dropshipping
- Do I need to register a business?
- How much can you earn dropshipping?
- Tips for dropshipping success in NZ
What is Dropshipping?
Dropshipping is an order fulfilment method where you sell products online without holding any stock. You set up an online store, choose products to sell from a supplier’s catalogue, and list them for sale at a marked-up price.
When someone buys from your store:
- You collect payment via your website (Shopify, WooCommerce, etc.)
- You pay your supplier the wholesale cost
- The supplier ships the product directly to the customer
You keep the profit between your retail price and the supplier cost (minus expenses like marketing, software, and transaction fees).
✅ Pros of Dropshipping
- Low startup cost – No need to invest in stock upfront
- Work from anywhere – 100% online business model
- Scalable – Add products and suppliers as you grow
- No warehousing – Supplier handles storage and shipping
- Great side hustle potential – Can start part-time
❌ Cons to Watch Out For
- Lower profit margins – You’re not buying in bulk
- Shipping delays – Especially if using overseas suppliers
- Supplier reliability – Mistakes affect your reputation
- Customer service issues – You’re still the point of contact
- Competition – Many others are selling the same products
Step-by-Step: How to Start Dropshipping in New Zealand
1. Choose a Niche
Pick a product category or niche to focus on. This helps you build a stronger brand and reach a targeted audience.
Tips:
- Solve a problem or appeal to a passion (e.g. dog gear, home office gadgets, camping accessories)
- Avoid highly regulated products (e.g. cosmetics, supplements)
- Look for lightweight, non-breakable items to reduce shipping issues
2. Find Reliable Suppliers
Partner with reputable suppliers who offer quality products and reliable shipping. Consider both local and international options:
Local Suppliers:
- SaleHoo: A New Zealand-based company offering a comprehensive directory of over 8,000 pre-vetted suppliers and 2.5 million products across 130 categories.
- Colourblocker: An Australian supplier specialising in kitchenware, electronics, home & living items, and gifts, with shipping to New Zealand.
- DropshipZone: Offers a wide range of general merchandise, including furniture and gifts, primarily serving Australia but also shipping to New Zealand.
- Simply Wholesale: Provides a vast selection of products, including health, beauty, automotive parts, and toys, with shipping from Australia to New Zealand.
- Always Direct: Specialises in furniture, health & beauty, and sports gear, with shipping across New Zealand.
International Suppliers:
- AliExpress: A vast marketplace with numerous suppliers.
- CJ Dropshipping: Offers product sourcing and fulfilment services.
- Spocket: Connects you with suppliers from the US and EU.
Questions to ask suppliers:
- Do they support dropshipping?
- How long is shipping to NZ customers?
- What happens with returns or damaged items?
3. Set Up Your Online Store
Use platforms like:
- Shopify (easiest to start with, lots of dropshipping integrations)
- WooCommerce (for WordPress users)
- BigCommerce, Squarespace, or Ecwid as alternatives
You’ll need:
- A business name and domain
- Product listings with good images and descriptions
- Payment gateway (e.g. Stripe, PayPal)
Pro tip: Use tools like Canva to design a logo and branding assets quickly.
4. Price Your Products
Account for:
- Supplier cost
- Transaction & platform fees (usually 2–3%)
- Marketing (Facebook, Google Ads, etc.)
- Profit margin (aim for at least 20–40%)
Test different prices — people will pay more for good branding and customer experience.
5. Market Your Store
Marketing is key in dropshipping. No one will find your store unless you drive traffic.
Try:
- Facebook & Instagram Ads (start small and test)
- Google Shopping Ads (great for product-based searches)
- Search Engine Optimisation (SEO) (optimise your website for search engines)
- TikTok videos or reels (organic reach potential)
- Influencer collaborations (small NZ creators can be effective)
- Email marketing (build a list with discounts or freebies)
6. Manage Orders & Customer Service
Once sales come in:
- Use automation apps (like DSers or Oberlo) to fulfil orders quickly
- Respond to customer emails promptly
- Be transparent about shipping times, especially if using overseas suppliers
7. Monitor and Optimise
Regularly analyse your store’s performance using analytics tools. Track metrics like traffic sources, conversion rates, and customer behaviour to make informed decisions and improve your business strategies.
Do I Need to Register a Business?
You can begin selling immediately as sole trader, or register a company. If you’re earning more than $60,000/year, you must register for GST. Even before that, it’s smart to:
- Track all business income and expenses
- Keep invoices and supplier receipts
Stay on Top of Tax
Even if you’re dropshipping part-time, your profits are taxable income. That means:
- You may need to file an IR3 income tax return
- If over $60k turnover, you’ll need to file GST returns
- ACC levies will apply to your self-employed income
Solo can help: With Solo, you can automatically track your income, calculate income tax and GST in real-time, and be ready to file your return without stress.
How Much Can You Earn Dropshipping?
Dropshipping income varies hugely depending on niche, marketing skills, and commitment:
| Stage | Typical Income (NZD) |
|---|---|
| Month 1-3 | $0 – $500/month (testing phase) |
| Month 4-6 | $500 – $2,000/month |
| 6+ months | $2,000 – $10,000+/month |
Scaling requires good branding, repeat customers, and possibly building your own product or private label over time.
Final Tips for Dropshipping Success in NZ
- Start small, test fast, and learn as you go
- Don’t rely on one product or one ad — test regularly
- Build a brand — not just a shop
- Focus on customer experience: shipping, communication, trust
- Use Solo to manage your financials as you grow
Ready to Launch Your First Dropshipping Store?
Dropshipping is one of the most beginner-friendly ways to start a business in New Zealand — if you approach it smartly.
With the right tools, trusted suppliers, and clear financial visibility, you can grow your side hustle into a sustainable source of income.
Track your dropshipping income, expenses, and taxes with Solo.
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