Product sourcing for an Australian business

Product sourcing begins by defining what you need to sell, then comparing suppliers that can deliver at a cost and risk your business can manage. For an Australian business, it also covers requirements for importing and supplying the finished product.

Test demand and refine the product

Before committing to a production order, confirm the idea meets a customer need. Describe the problem it solves, identify likely customers, and compare similar products for strengths and gaps. Surveys or interviews with potential customers can test assumptions before you spend more time and money.

A prototype can reveal problems a written brief will not. Let potential customers try it, watch how they use it and ask what they would change. Use feedback to refine the design; testing misuse or regular wear can also expose weaknesses.

Define the product and first order

Write a short brief before approaching suppliers. Describe the intended customer and use, essential features, materials or construction, variants, packaging and planned claims. Separate requirements from preferences. If colour is flexible but a component must fit existing equipment, say so.

Set a realistic first-order quantity range based on demand you can explain, available cash and storage space. Note when stock is needed. A product still being designed may need a prototype before suppliers can quote reliably for production.

For consumer goods, check Australian product-safety requirements early. A mandatory standard may cover construction, performance, packaging or labelling, depending on the product. A supplier's general assurance does not prove the version you intend to buy meets an applicable requirement.

The ACCC's Product Safety website (productsafety.gov.au) is Australia's consumer product safety regulator. Check its list of products with mandatory standards and its information on bans; not every product has a mandatory standard, and standards and bans are made where evidence shows a high risk of serious injury, serious illness or death.

Compare sourcing options on the same basis

You can buy finished goods locally, commission local production or import finished goods. Ask every candidate to quote against the same brief and quantity range. Record the specification, minimum order, lead time, payment schedule, delivery point and product evidence.

For a product you develop, production can also be local, overseas or in-house. Location affects the work involved but does not decide quality or value on its own. A local seller may supply imported goods. Importing directly may offer a different price or more control, but it creates freight, clearance and other tasks that need an owner. Establish who performs each task before comparing prices.

Estimate the order cost: goods, samples or setup, freight, insurance where relevant, duties and taxes where applicable, clearance and handling, inspection, storage and likely corrections. Keep tax cash outlays separate from the underlying cost comparison, and confirm treatment with a qualified adviser. Compare the stock and cash each offer requires, as well as cost per unit. Most imports are subject to 10% goods and services tax (GST); customs duties and import processing charges may also apply, depending on the goods.

Key Costs and Compliance Requirements for Importing Products into Australia

Find and assess potential suppliers

Start supplier research with online searches, industry events or exhibitions, industry groups and professional networks. Industry databases and association websites can help locate suppliers; recommendations from other businesses may also provide candidates. Keep a shortlist so you can compare offers against the same product requirements.

Reliability and trust matter because late or unsuitable supply affects customer service and stock availability. A larger supplier may have more resources to manage disruptions, while a smaller one may offer a closer working relationship; business experience is another factor. For a new product, consider price, quality, reliability, sustainability and delivery times.

As basic checks, read online reviews and ask for references. Search the Australian Business Register to confirm the supplier is a legitimately registered business, and the Personal Property Securities Register to see whether goods being supplied are used as security for a debt.

Check the supplier and goods

Before ordering, check who will invoice and supply the goods, whether the supplier can provide references or a current product specification, and how a sample compares with your brief. For consumer products, confirm whether a mandatory standard or ban applies and whether the evidence covers the model and variants you intend to buy.

Ask for written safety evidence, such as test reports or third-party product certification, and check that it relates to the product version you intend to buy. Testing may be done by an independent, preferably accredited laboratory; a pre-production sample alone may not be enough without further quality assurance.

If importing, check the goods' Australian import conditions before committing to a shipment, as customs, permits, biosecurity or specialist rules may apply. A licensed customs broker can help; keep someone in your business responsible for the product decision.

The Australian Border Force (ABF) clears imported goods through customs. Unless an exception applies, goods arriving in Australia must be declared to the ABF; most goods valued up to A$1,000 can be imported without a formal import declaration, while requirements are generally more complex for goods over A$1,000, prohibited or restricted items, biosecurity risks, or goods subject to duty or taxes.

Check whether a permit is needed and whether clearance requirements include biosecurity, food safety or drug control. The Department of Agriculture, Fisheries and Forestry explains biosecurity requirements for imported goods.

For consumer products, the business supplying the goods in Australia is legally responsible for product safety, including where no mandatory safety requirement applies. Under the Australian Consumer Law (ACL), supplying goods that do not comply with an applicable mandatory standard is an offence and may attract enforcement action, fines and penalties.

Make the first order traceable

Record the approved product version, quantities, price, payment and delivery terms, quality requirements and process for defects. Identify who can approve changes, and require the supplier to flag substitutions before using them.

Before dispatch, confirm the product version, any required compliance evidence, the quantity and variants ready, and the response to known defects. Match the depth of checking to the product's risks. Record what was checked and what remains uncertain.

After receipt, compare accepted quantity, defects, arrival date and total cost with the original estimate. Review supplier performance against the agreed requirements and use those observations when planning the next order. If the product or supplier changes, revisit the requirements.