Reselling is a popular way to start or scale a business in Australia. Whether you’re flipping limited-edition items, running a vintage market stall, dropshipping, or curating an online store, the model can be flexible and profitable.
But there’s a common concern that comes up early: is reselling illegal in Australia?
In short, reselling products is generally legal if you follow Australian laws and avoid prohibited conduct. This guide steps through what “reselling” means, when things can become unlawful, how to set up your business properly, and the key legal documents and rules to keep you compliant as you grow.
What Is Reselling In Australia?
At its core, reselling involves buying goods from a supplier, retailer or individual, then selling them on-usually at a profit. You might be sourcing wholesale stock, repackaging bulk buys, importing genuine products, or selling pre-loved items.
Common reselling models include:
- Buying wholesale or clearance items and selling through your own site or marketplace listings
- Curating second-hand, vintage or collectible goods for an online store or market stall
- Dropshipping, where a supplier ships orders directly to your customer
- Specialist niches (for example, tech accessories, apparel, homewares, or hobby products)
However you brand your venture, you’re still running a business-so Australian Consumer Law, intellectual property rules and other compliance obligations will apply to your operations.
Is Reselling Products Illegal In Australia?
No-reselling products is not illegal in Australia. Many legitimate businesses (including large retailers and online marketplaces) operate on a resale model.
That said, there are clear lines you can’t cross. You must not sell stolen or counterfeit goods, mislead customers, infringe trade marks or other IP, or ignore product safety and industry-specific rules. You should also steer clear of conduct that breaches competition laws (for example, price fixing or resale price maintenance).
It’s also important to separate what’s “illegal” from what’s “risky” or non-compliant. For example, “price gouging” (charging high prices) isn’t broadly unlawful in Australia by itself. It can become a problem if it involves misleading conduct, anti-competitive behaviour, or breaches a specific emergency pricing law. We cover pricing and competition law issues in more detail below.
If you’re weighing up the reselling model, it’s worth reading a companion overview on whether it’s legal to resell products in Australia and how to structure things correctly from day one.
What About Parallel (Grey) Imports?
Parallel imports are genuine, branded products that you buy overseas and then resell in Australia without the local brand owner’s permission. In many cases, parallel importing is permitted under Australian trade mark law. However, you must still meet all local compliance requirements (for example, safety standards, labelling or consumer guarantees) and avoid misleading consumers about the origin or warranty coverage.
If you’ve signed any supplier terms, check whether you’re contractually restricted from selling into Australia or certain channels-even if the law allows parallel imports, you still need to honour your contracts.
How To Set Up Your Reselling Business
Getting the legal and operational basics right early will make your life easier as you grow. Here’s a simple roadmap.
1) Choose Your Business Structure
Your structure affects your risk, tax and admin obligations:
- Sole trader: Simple and inexpensive to start. You control the business and report income in your personal tax return, but you’re personally liable for business debts.
- Partnership: Two or more people carry on business together. Profits and responsibilities are shared under a partnership arrangement, and partners are generally jointly liable for debts.
- Company: A separate legal entity that can help limit personal liability. There’s more setup and compliance, but many resellers choose a company as they scale and want clearer separation of risk.
If you plan to build a brand, hold inventory, or bring on co-owners, a company can be worth considering for governance and liability reasons.
2) Register Your Business Details
Most resellers will need an Australian Business Number (ABN). If you operate under a name other than your personal name, register a business name with ASIC. Keep in mind that business name registration does not give you exclusive brand rights-only trade mark registration can do that (more on brand protection below). If you’re unsure about ABNs and your setup, start by understanding how working under an ABN fits into your plans.
3) Understand Your Tax Position
If your turnover is $75,000 or more in a 12‑month period, you’ll need to register for GST and charge GST on taxable sales. Even below the threshold, good record-keeping is essential for BAS and income tax reporting. This information is general only-get advice from a qualified accountant on tax structuring, GST and inventory treatment for your situation.
4) Plan Your Operations And Suppliers
Decide how you’ll source goods and verify authenticity. Map out your sales channels (your own site, marketplaces, social media, in person). Consider your returns process and customer service strategy-these areas directly affect legal compliance and customer trust.
5) Put Your Core Contracts And Policies In Place
Before you start trading, have clear terms for customers and suppliers, and basic website and privacy documents. This will help you manage risk, meet legal obligations and prevent disputes as you scale.
What Laws Do Resellers Need To Follow?
Reselling is legal-compliance is about how you do it. These are the key legal areas to understand.
Australian Consumer Law (ACL)
As a business selling goods, you must comply with the ACL. This includes rules against misleading or deceptive conduct, requirements around consumer guarantees, and fair dealings around refunds and returns. Claims about a product must be accurate and supported.
Practically, that means being clear about condition (especially for second‑hand items), delivery timeframes, and any limitations that apply. If you advertise, ensure your statements would not be considered misleading under section 18 of the ACL.
Pricing And Competition Rules
- Price transparency: Your advertised prices must be clear and not misleading. Be careful with “was/now” pricing, surcharges and drip pricing-see the rules around advertised price laws in Australia.
- Resale price maintenance: Suppliers can’t force you to sell at or above a specified price, and you shouldn’t agree to this. Similarly, price fixing with competitors is unlawful.
- High pricing: Charging a high price isn’t automatically unlawful, but it can be problematic if paired with misleading conduct, collusion, or special emergency rules.
Intellectual Property (IP) And Counterfeits
Only sell genuine goods. Counterfeit items expose you to significant legal risk. When marketing, be careful how you use other brands’ names or logos-referencing a brand to describe a genuine product is typically fine, but implying you’re an “authorised dealer” when you’re not can be misleading, and using protected brand assets in your own branding can infringe trade marks.
If you’re investing in your own label or store brand, consider registering a trade mark to protect your name and logo through Register Your Trade Mark.
Product Safety And Industry-Specific Rules
Some products have mandatory safety standards, labelling rules or age restrictions (for example, toys, cosmetics, electronics, alcohol). If you import goods, it’s your responsibility to ensure they meet Australian standards. Depending on your category or location, you may also need local council permits for market stalls or pop‑up retail.
Privacy And Data Protection
If you collect personal information through your website or sales channels, you’ll need to handle it responsibly. Not every small business is legally bound by the Privacy Act (for example, some small businesses under $3 million annual turnover are exempt unless they meet certain criteria), but customers and platforms expect transparency. A clear, accessible Privacy Policy is best practice and often contractually required by marketplaces, payment gateways and advertisers.
Contracts And Supplier Terms
Always read and understand the terms you agree to with wholesalers and platforms. Watch out for restrictions on where you can sell, how you can use brand assets, return rights for defective goods, and responsibility for product liability or recalls. If a supplier offers exclusivity or “authorised reseller” status, the details should be documented and reviewed before you sign.
Common Questions We Hear From Resellers
Can I resell branded or designer goods? Yes-if they’re genuine and lawfully acquired. Be accurate about what you’re selling, don’t imply a false affiliation, and avoid using protected brand assets in your own brand or site design without permission.
Is dropshipping legal? Yes. You can sell first and have a supplier fulfil orders. You must still meet your ACL obligations, including accurate product descriptions, clear shipping timeframes and responsibility for faulty items. If you dropship regularly, consider aligning your supplier terms with your customer promises.
Can a supplier stop me reselling? If you’ve signed a contract that restricts channels or price, you need to honour it. But a supplier generally can’t prevent resale of goods you own unless there’s a legal or contractual basis to do so. Don’t ignore your fine print.
What about second‑hand items? You can resell second‑hand items. Just clearly describe condition, ensure items are safe and legal to sell, and apply consumer guarantees appropriately.
What Legal Documents Should You Put In Place?
The right contracts and policies reduce risk, clarify expectations and build trust with customers and suppliers. Most reselling businesses will consider the following.
- Terms and Conditions (Online Shop): Set out pricing, delivery, returns, risk of loss, consumer guarantees and dispute processes. If you sell online, use clear Terms and Conditions that match your actual operations (including shipping and returns).
- Website Terms of Use: Rules for using your site, IP ownership notices, acceptable use, and liability limits. If you run your own storefront, have proper Website Terms & Conditions.
- Privacy Policy: Explains how you collect, use and store personal information, including cookies and marketing preferences. A clear Privacy Policy is expected by most customers and platforms.
- Supply Agreement: Covers product authenticity, quality, delivery timelines, risk and title, returns/recalls, indemnities and exclusivity. A tailored Supply Agreement helps align supplier obligations with your promises to customers.
- Distribution/Reseller Agreement: If you’re an authorised reseller, make sure your rights to use branding, channels, territories and marketing materials are clearly documented (and realistic for your model).
- Dropshipping Terms (if relevant): If your supplier ships directly to customers, ensure responsibilities for packaging, shipping times, lost parcels and product faults are nailed down so you can meet your ACL duties.
- Employment Contracts & Policies: When hiring, use compliant contracts and clear policies around customer service, refunds, privacy and data handling so everyone understands their obligations.
Not every reseller needs every document right away, but it’s important to cover your essentials before you launch. As you expand to new categories or channels, update your contracts and policies accordingly.
Practical Tips To Protect And Grow
- Vet suppliers: Ask for invoices, brand authorisations (if relevant) and proof of authenticity. Keep records.
- Match promises to operations: Ensure your refund, shipping and warranty processes align with your legal obligations-and with what your website says.
- Build your brand: Business name registration doesn’t secure exclusivity. Protect your brand by registering a trade mark via Register Your Trade Mark and use consistent branding across channels.
- Be transparent with pricing: Avoid misleading promotions and ensure your advertised pricing complies with the rules on advertised prices.
- Review policies regularly: If you change product lines, shipping methods or platforms, update your terms and supplier arrangements so everything stays aligned.
Key Takeaways
- Reselling products is generally legal in Australia; issues arise when businesses sell counterfeit/stolen goods, mislead customers or ignore key compliance rules.
- Set up the right structure, register your ABN and business name, and remember that a business name doesn’t protect your brand-trade mark registration does.
- You must comply with the Australian Consumer Law, including accurate advertising and appropriate consumer guarantees, and avoid resale price maintenance or anti‑competitive conduct.
- Parallel importing of genuine goods is often allowed, but you must meet Australian safety/label rules and respect any contracts you’ve signed with suppliers.
- Put strong foundations in place with clear customer terms, website terms, a Privacy Policy and robust supplier contracts tailored to your reselling model.
- Pricing transparency and brand accuracy matter: be clear, avoid misleading claims and document your relationships and processes to reduce risk.
If you would like a consultation on starting a reselling business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
