Guide

Dropshipping NZ: How to Find Suppliers & Start Selling Online

Find reliable dropshipping NZ suppliers, cut costs, and ship faster.

A shopping basket of items with a paper plane circling it

November 2023 | Published by Xero

Published Friday 5 December 2025

Table of contents

Key takeaways

• Register your dropshipping business properly by obtaining a New Zealand Business Number (NZBN) and understanding your tax obligations, including GST registration if your turnover exceeds $60,000 annually.

• Evaluate potential suppliers thoroughly by checking their product quality through samples, verifying shipping times to New Zealand, testing their customer service responsiveness, and ensuring platform compatibility before committing to partnerships.

• Research and verify supplier legitimacy by checking business registrations, reading customer reviews, testing communication quality, and confirming delivery capabilities to avoid unreliable partnerships that could damage your customer relationships.

• Track your finances meticulously from day one by monitoring supplier costs, calculating profit margins, and maintaining clear records of all transactions to ensure your dropshipping business remains profitable and sustainable.

What are dropshipping suppliers and companies?

Dropshipping suppliers handle product fulfilment for your online store. Here's how they work:

  • Suppliers: Store inventory and ship products directly to your customers
  • Dropshipping companies: Connect you to multiple suppliers through one platform
  • Your role: Market products and manage customer relationships without handling inventory

The dropshipping process follows these steps:

  1. Customer orders: Customer purchases from your online store
  2. Order forwarding: You send order details to your supplier
  3. Fulfilment: Supplier packages and ships product directly to customer
  4. Delivery: Customer receives product with your branding

Dropshipping suppliers and companies exist all over the world. If you choose a dropshipping supplier in another country, your customers may face longer delivery times.

Yes, dropshipping is a legal business model in New Zealand. Like any business, you need to follow the rules to operate legally and build trust with your customers.

Key things to consider include:

  • Business registration: You'll need to decide on a business structure and register for a New Zealand Business Number (NZBN).
  • Tax obligations: You must understand your requirements for income tax and GST. For example, you need to register for GST if your turnover is over $60,000 in a 12-month period. According to New Zealand's Inland Revenue, this applies if your taxable activity's turnover was at least $60,000 in the last 12 months, or you expect it to be in the next 12 months.
  • Consumer laws: Your business must comply with the Fair Trading Act and the Consumer Guarantees Act, which protect customers from misleading claims and ensure products are of acceptable quality.

Getting these things right from the start helps you build a sustainable business. An accountant or bookkeeper can give you advice for your specific situation.

How to start dropshipping in New Zealand

You can break starting a dropshipping business in New Zealand into a few simple steps. Here's a quick look at the journey from idea to first sale.

  1. Choose your niche and products: Find a product category you're passionate about and that has customer demand.
  2. Find reliable suppliers: Research and partner with trustworthy suppliers who offer quality products and timely shipping.
  3. Set up your online store: Choose an ecommerce platform like Shopify or WooCommerce to build your website and list your products.
  4. : Use social media, search engine optimisation (SEO), and online advertising to attract customers to your store.
  5. Manage your finances: Keep track of your sales, expenses, and profit from day one to make confident business decisions.

Companies that dropship

Dropshipping companies act as intermediaries between you and suppliers. They provide access to vetted supplier networks and product catalogues.

There are two main types of suppliers:

  • Manufacturers: Create products but often require bulk orders
  • Wholesalers: Buy from manufacturers and sell smaller quantities with lower risk

Manufacturers make and sell the products to wholesalers or retailers. But they often require bulk purchases upfront, which can be risky for dropshippers trialling a product.

Wholesalers buy products from manufacturers and sell them on to retailers for a small profit. They stock the product, but they don't make the product. Price per unit tends to be higher with wholesalers, but the risk is lower because you don't need to make bulk purchases upfront.

Best dropshipping companies in New Zealand

Evaluate suppliers using these criteria before committing to partnerships:

  • Product quality: Check customer reviews and order samples
  • Shipping speed: Confirm delivery times to New Zealand
  • Customer service: Test response times and support quality
  • Integration: Ensure compatibility with your ecommerce platform

Some of these dropshipping companies work best with specific platforms. Before selecting your dropshipping supplier, make sure you know which ecommerce platform is best for you.

SaleHoo

SaleHoo has two offerings for dropshippers: a directory to source reliable suppliers and a store integration for Shopify, so you can directly import products from SaleHoo to your Shopify store.

Pros:

  • You can choose from 2.5 million products
  • You can access over 8000 suppliers who are pre-vetted by SaleHoo
  • You can import 500 products on the cheapest plan or unlimited products on the Premium plan

Cons:

  • Only two pricing plans to choose from: Basic or Premium
  • No dedicated onboarding account manager with the Basic plan
  • No free trial

Spocket

Spocket connects you to a library of products and a supplier directory that you can filter by location. Paying no commission fees, sellers using Spocket only pay for the products they sell – and a monthly subscription.

Pros:

  • You can order product samples to make sure the quality is up to scratch
  • You can use Shopify, BigCommerce, WooCommerce, and Wix integrations
  • Suppliers are vetted and verified
  • You get 24/7 chat support on any of the plans

Cons:

  • The starter plan only lets you sell 25 unique products
  • Spocket handles all communication with the supplier, so you can't get in touch with them directly through the platform

AliExpress

AliExpress is owned by Alibaba, a popular business-to-business (B2B) online retail platform based in China. With over 100 million products available, AliExpress offers variety and simplicity for dropshippers worldwide.

Pros

  • No subscription or monthly membership fees
  • Compatible with a range of platforms, including Shopify, WooCommerce and DSers
  • The availability of products at cheap wholesale prices offers the potential for higher profit margins

Cons

  • You'll need to invest significant time into researching quality and trending products
  • Given many suppliers are based in Asia, delivery times may take longer with the free or standard shipping options
  • Be careful to check the legitimacy and reputation of your chosen suppliers

Colourblocker

Colourblocker is a Sydney-based dropshipping platform that ships to Australia and New Zealand. It offers a range of quality products in kitchen and homeware, electronics, and accessories.

Pros

  • Colourblocker typically approves applications for dropshipping accounts quickly (within 48 hours)
  • No monthly subscription or fulfilment fees – you only pay for the products you buy
  • 48-hour processing time for orders
  • Easy integration with platforms such as Shopify, WooCommerce, and Amazon

Cons

  • Delivery times can be up to 10 business days, depending on location
  • Express shipping is only available for wholesale orders
  • Colourblocker don't pay to ship returned items, and they charge a restocking fee for returns

Wholesale dropshipping in New Zealand

how to find drop shipping suppliers

Wholesale dropshipping means working directly with wholesalers who buy products in bulk from manufacturers.

Benefits:

  • Lower product costs through bulk pricing
  • Access to diverse product catalogues
  • Direct supplier relationships

Considerations:

  • May require minimum order quantities
  • Higher upfront investment than dropshipping companies

Wholesale dropshipping works well once you've built a customer base and identified your most popular products. By working with a wholesaler, you could get a better deal on stock by purchasing in bulk. And you still won't need to worry about storage – the wholesaler will stock, pack, and ship for you.

How to find dropshipping suppliers

Find dropshipping suppliers using these proven methods:

  • Online directories: Browse vetted suppliers on platforms like SaleHoo and Spocket
  • Direct outreach: Contact manufacturers and wholesalers directly
  • Search engines: Use terms like "wholesale dropshipping NZ" and "dropshipping suppliers"
  • Social media: Search LinkedIn and industry groups for supplier connections
  • Trade shows: Network with suppliers at industry events

You can also source suppliers through third party marketplaces like Amazon, eBay, and Etsy. Search for your desired product and sort the results by price: lowest to highest for the cheapest deals. If you find a supplier you like the look of, research them online to see if you can set up a direct relationship.

Another way to find dropshipping suppliers is to buy from companies you think use dropshipping, then check who ships the order. When you receive the package, look up the return mailing address to see who their supplier is.

Physical events and networking can also help you meet potential suppliers. Attend industry trade shows to form personal relationships with potential suppliers, and negotiate deals in-person.

Tips for contacting and negotiating with dropshipping suppliers

Research suppliers thoroughly before partnerships and follow these tips:

  • Verify legitimacy: Check business registration and certifications
  • Read reviews: Search for customer feedback on product quality and service
  • Test communication: Evaluate response times and professionalism
  • Order samples: Assess product quality and packaging standards
  • Confirm shipping: Verify delivery times and costs to New Zealand
  • Communicate clearly: Your supplier has a significant role to play in keeping your customers satisfied. Clearly state your expectations, concerns, and requirements to the supplier. Ask plenty of questions so you can create a fair agreement.
  • Be flexible: Your vision for the business might not align with what's possible for the supplier. Be firm on your expectations, but open-minded about supplier capabilities. Explain your requirements and listen to theirs so you can find a mutually beneficial solution.
  • Build a long-term relationship: The promise of ongoing custom could encourage suppliers to provide a discount or additional benefits as part of your agreement. In return, recommend their products or refer customers. If you're not ready to enter a long-term contract, suggest a trial period before signing.
  • Consider the supplier's perspective: Your supplier will have their own targets to meet. Think about how you can help them reach their goals while sustaining your own business. Acknowledge their profit margins and business model before haggling on price.
  • Be professional: Come to conversations equipped with information and key figures for your business. Be fair and polite with all suppliers, regardless of whether you choose to work with them or not.

Dropshipping costs and profitability in New Zealand

One of the main benefits of dropshipping is the low start-up cost. But it's not free. Understanding the costs helps you price your products correctly and see if you're making a profit.

Common costs for a dropshipping business include:

  • Ecommerce platform fees: A monthly subscription for your online store.
  • Supplier costs: The wholesale price of the products you sell.
  • Marketing and advertising: Expenses to attract customers to your store.
  • Transaction fees: Charges for processing customer payments.

Your profitability depends on the difference between your selling price and the total cost of the product, including supplier and shipping fees. Keeping a close eye on these numbers in your accounting software is key to making sure your business is financially healthy.

Is dropshipping worth it?

Dropshipping makes it easy to start selling online with minimal upfront costs and no need to manage inventory.

Key advantages:

  • Start with minimal capital investment
  • No inventory storage required
  • Location independence

Main challenges:

  • Lower profit margins than traditional retail
  • Less control over shipping and quality
  • Dependence on supplier reliability

Is dropshipping possible in New Zealand?

Yes, dropshipping is possible in New Zealand, but you must follow the legal requirements for starting an online business.

Additionally, be sure to check that your chosen products can be legally sold in New Zealand, especially if they're coming from overseas suppliers. When pricing your products, make sure you're complying with local tax laws.

The global dropshipping market is expected to double between 2022 and 2026 which means you have strong potential to grow online sales. But you'll need to research diligently in order to stay competitive against other online businesses.

Also, many dropshipping suppliers may be based overseas, so be sure to consider shipping prices and delivery times to New Zealand customers when engaging with suppliers.

Managing your dropshipping business finances

Successful dropshipping depends on reliable suppliers and solid financial management. Track your supplier costs, monitor profit margins, and maintain clear records of all transactions.

Try Xero for free to streamline your dropshipping finances with automated invoicing, expense tracking, and real-time profitability insights.

FAQs on dropshipping suppliers in New Zealand

Here are some common questions about starting a dropshipping business in New Zealand.

Is dropshipping profitable in New Zealand?

Dropshipping can be profitable in New Zealand if you choose the right products, find reliable suppliers, and manage your costs effectively. Your profit margin is the difference between what the customer pays and what it costs you to source and ship the product. Tracking your finances carefully is the best way to ensure profitability.

How much money do you need to start dropshipping in NZ?

You can start a dropshipping business with a relatively small investment. Your main initial costs will be for your ecommerce platform subscription, business registration, and any marketing you do to get your first sales. You don't need to buy inventory upfront, which significantly lowers the startup cost compared to traditional retail.

Do I need to register my dropshipping business in NZ?

Yes, if you intend to trade and make a profit, you should register your business. This involves getting a New Zealand Business Number (NZBN) and registering with Inland Revenue (IRD) for tax purposes. This is an important step in operating a legal and professional business.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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