Reselling products in Australia can be a great way to build a business around existing demand. You might curate gift hampers, launch an online store, or run market stalls with a tight edit of brands your customers love.
Beyond finding a good supplier, a successful reselling venture needs a clear legal setup. That includes choosing the right structure, understanding permits, meeting consumer law obligations, and avoiding intellectual property issues.
If you’re planning to start (or scale) a reselling business in Australia, this guide walks you through what’s legal, what’s required, and how to stay compliant from day one.
Is Reselling Legal In Australia?
Yes. Reselling genuine products in Australia is legal when you comply with Australian laws and you don’t infringe other people’s rights. In practice, that means:
- You buy genuine products (not counterfeit or pirated goods).
- You don’t mislead customers about your relationship with a brand (for example, implying you’re “authorised” if you’re not).
- You meet product safety, labelling and consumer guarantees under the Australian Consumer Law (ACL).
Most products can be resold without special permission, particularly if you purchase from wholesalers or distributors. This is often referred to as the “exhaustion of rights” principle: once a trademark owner sells a product, it can typically be resold as a genuine item. Issues arise where goods are fake, altered, unsafe, or your marketing suggests a false association with the brand.
If you’re comparing different approaches (for example, drop shipping vs stocking inventory), the core compliance obligations are similar. You still need clear contracts with suppliers, accurate product descriptions, and strong customer terms. If you want a deeper dive on the fundamentals, you might also find it helpful to read a related overview on whether reselling products is legal in Australia.
Do You Need A Licence, Seller’s Permit Or Reseller Permit?
Australia doesn’t have a single, universal “seller’s permit” for resellers. Instead, you set up and run a compliant business using the usual registrations and any industry-specific licences that apply to what you sell and where you sell it.
Core Registrations
- ABN (Australian Business Number): You’ll need an ABN to operate. Many small businesses trade as a sole trader to begin with; others form a company for liability and growth reasons. If you choose a company, it’s set up with ASIC – we can help with a streamlined Company Set Up.
- Business Name: If you trade under a name that’s not your personal name or your company’s exact name, register a business name. This helps customers find you and avoids confusion with other businesses.
- GST: If your GST turnover is $75,000 or more, register for GST and issue compliant tax invoices. Keep accurate records for BAS lodgements. (General tax note: your accountant or tax adviser can guide you on registrations and reporting that fit your situation.)
Licences And Permits By Product Type
Depending on your product categories and location, you may also need specific authorisations:
- Alcohol: You’ll generally need a liquor licence to sell alcohol, even if it’s a single bottle included in a hamper.
- Food: Councils and state food authorities regulate food businesses. Registration, safe handling, and correct labelling may be required (especially for perishable or prepared foods).
- Cosmetics and personal care: Ingredient and labelling rules apply. If you’re rebranding or repackaging (rather than reselling sealed, branded goods), compliance obligations increase.
- Tobacco and vaping products: These are subject to strict state and national controls, often including prohibitions on retail sale of certain products.
- Second-hand goods: Many states require second-hand dealer licences for buying and selling used goods (including electronics, jewellery or pawnbroking).
- Electrical goods: There are product safety standards and, in some cases, requirements for responsible suppliers or specific approvals.
If you’ll operate from a physical location (home-based storage, warehouse or retail shop), check council planning approval or home business rules. Requirements can vary between councils, even within the same suburb.
How To Start A Reselling Business: A Practical Step-By-Step
Every business is different, but this roadmap will help you set up in a clear, low-risk way.
1) Validate Your Model And Niche
- Who is your customer? Individuals, corporate buyers, gift-givers, collectors?
- What problem or desire are you meeting? Price, convenience, scarcity, curation?
- How will you source stock? Local wholesaler, importer, direct from brands, or drop shipper?
- Will any products need special permissions (for example, alcohol or second-hand items)?
- What will differentiate your store? Bundles, exclusive lines, content, or customer experience?
Having a clear plan makes your legal setup easier because you’ll know which contracts and approvals you actually need.
2) Choose A Structure And Register
Common options are:
- Sole trader: Simple and low cost. You operate under your ABN and are personally responsible for debts and liabilities.
- Partnership: Two or more people in business together. Consider a written partnership agreement to manage risk and decision-making.
- Company (Pty Ltd): A separate legal entity that can limit personal liability and support growth. This requires ASIC registration and ongoing compliance. If you’re building a brand you plan to scale, a company is often worth considering. A tailored Company Set Up can include a Company Constitution and guidance on share structure.
Next, secure your ABN, register any business name you’ll trade under, and consider GST registration if you’re likely to hit the threshold. If you’ll sell online, lock in your domain and social handles early to protect your brand.
3) Lock In Supply And Logistics
Before you launch, ensure you can reliably source stock and deliver orders on time. Key tasks include:
- Negotiating a Supplier Agreement that covers price, lead times, shipping terms (Incoterms, if importing), quality control, returns and remedies.
- Confirming any IP licences you need to use a brand’s images, logos or marketing assets in your store and ads.
- Planning your fulfilment model: in-house, 3PL (third-party logistics) or drop shipping. Your customer terms should clearly explain delivery, risk and returns.
- If importing, understanding customs entries and GST on importation. For some products, the Import Declaration (N10) process is relevant.
4) Set Up Your Online Store And Policies
Make sure your front-end experience aligns with your legal obligations. For ecommerce, most resellers will need a clear set of E‑commerce Terms and Conditions, a Website Terms and Conditions, and a practical refunds/returns policy that complies with the ACL.
If you’re building a marketplace that allows third-party sellers, you’ll also need tailored Marketplace Terms and Conditions to allocate responsibilities between you, sellers and customers.
5) Prepare For Launch And Ongoing Compliance
- Confirm any required licences or council approvals are granted.
- Set up customer service workflows for returns, repairs and complaints.
- Train staff on consumer guarantees and fair advertising rules.
- Schedule regular reviews of website copy and ads for accuracy and compliance.
If something goes wrong, a well-written Customer Terms and clear supplier warranties will save you time and reduce disputes.
What Laws Do You Need To Follow When Reselling?
Resellers still carry the legal obligations of a retailer. These are the big areas to get right from the start.
Australian Consumer Law (ACL)
The ACL applies to most B2C sales in Australia. In practice, you must ensure goods are of acceptable quality (not “merchantable” - that wording is outdated), match their description, and are fit for purpose. You must also honour customer guarantees and provide a remedy (repair, replacement or refund) for major failures.
Be especially careful with advertising. Avoid statements that could mislead or deceive, including exaggerations about performance, availability, “authorised” status or discounts. To keep your marketing compliant, it helps to understand the rules on misleading conduct and false representations, including misleading or deceptive conduct and false or misleading representations under section 29.
Consider whether your products need safety warnings, labels or instructions. For some categories (like button batteries, toys or cosmetics), mandatory standards or recalls may apply.
Privacy And Data Protection
Many resellers collect customer details for orders and marketing. Under Australia’s Privacy Act 1988, certain businesses must comply with the Australian Privacy Principles (APPs) - generally, those with annual turnover over $3 million, and some smaller businesses that handle sensitive information or perform specific activities (for example, health services, credit reporting, TFNs and others). Even if you’re not legally required to comply, a clear and accurate Privacy Policy is widely expected by customers, payment providers and marketplaces, and is a practical way to demonstrate good data hygiene.
If you send marketing emails or SMS, the Spam Act requires consent and easy unsubscribe options. It’s smart to review your approach against Australia’s email marketing laws before you build your list.
Intellectual Property (IP)
IP issues arise in two directions: not infringing others’ rights, and protecting your own brand.
- Using brand names and logos: You can say you’re selling Brand X products if they’re genuine, but don’t imply you’re endorsed or affiliated unless you are. If you want to use official brand images or styling, get permission in a written licence or your distributor agreement.
- Protecting your brand: If you’re investing in a distinctive name or logo, consider registering it as a trade mark. This makes it easier to stop copycats nationally. Our team can help you file and manage your application with Register Your Trade Mark, including choosing the right trade mark classes.
Product-Specific Regulations
As noted earlier, check for rules that apply to your particular category (alcohol, food, cosmetics, second‑hand goods, electrical items, vaping, etc.). If you’re importing, confirm whether additional safety or labelling standards apply, and factor in delivery timelines for any mandatory testing or approvals.
Taxes And Invoices
Plan for GST if you pass the $75,000 threshold or choose to register earlier. Use tax invoices that meet ATO requirements and keep accurate records for BAS. If you’re reselling to other businesses, some may request particular invoice formats (including RCTIs in limited cases). For imports, budget for GST on importation and any customs duties or charges.
Special Case: Gift Hampers And Bundles
Gift baskets are a popular way to add value and differentiate your store - and they’re a good example of why compliance needs a quick double-check.
- Alcohol: A liquor licence will usually be required if any hamper includes alcohol.
- Food: Registration, handling and labelling rules may apply, particularly for perishable items. Make sure use-by dates and ingredients are clear, and manage storage temperatures.
- Cosmetics/personal care: Label ingredients and warnings correctly if you repackage or white-label items.
- Brand usage: If your hamper marketing features a supplier’s trademarks or lifestyle imagery, secure permission in writing (often included in a distribution agreement).
What Legal Documents Should A Reseller Have?
Solid contracts reduce risk, keep you compliant, and set clear expectations with customers and suppliers. Most resellers will need a mix of the following:
- Customer Terms and Conditions: The ground rules for every sale - pricing, delivery, risk, returns, warranties, and limitations of liability. For online stores, these are typically your E‑commerce Terms and Conditions.
- Website Terms and Conditions: Rules for using your site or app, covering acceptable use, IP ownership, and disclaimers. See Website Terms and Conditions.
- Supplier or Distribution Agreement: Sets out pricing, order minimums, delivery schedules, title and risk, warranties, indemnities and whether you have exclusivity. If you manufacture or white‑label products, a tailored Supply Agreement is essential.
- Warranties Against Defects Policy: If you offer your own warranty in addition to ACL guarantees, this policy must include specific mandatory wording and information. Our team can prepare a compliant Warranties Against Defects Policy.
- Privacy Policy: Describes how you collect, use and protect personal information. Even when not strictly required by law, it’s best practice and often required by payment platforms. Start with a tailored Privacy Policy.
- Employment Contracts and Policies: If you hire staff, use compliant agreements (for casual, part‑time or full‑time) and core workplace policies. You can start with an Employment Contract that reflects the right award coverage and lawful set‑off clauses.
- Non‑Disclosure Agreement (NDA): Protects confidential information when discussing supply terms, new products or brand collaborations.
- Shareholders Agreement (if a company with co‑founders): Sets decision‑making rules, share vesting, exits and dispute processes so the business can grow smoothly.
Not every reseller will need every document on day one, but most will need several. Getting these drafted for your model (rather than grabbing a generic template) helps you avoid gaps that cause disputes later.
Growing And Protecting Your Brand
Once your store starts to gain traction, set your brand up for the next stage.
- Brand protection: Register your brand name or logo as a trade mark early. This simplifies takedowns on marketplaces and social platforms and deters copycats. Our trade mark service includes brand strategy and class selection.
- Channel expansion: If you add a marketplace or wholesale channel, update your agreements to cover dropship terms, service levels, and IP permissions. If you operate a multi‑seller site, use dedicated Marketplace Terms and Conditions.
- Compliance refresh: As your range evolves (for example, adding food or electrical items), revisit licences and product safety requirements.
- Import readiness: If you begin importing more stock, plan for timelines, duties, and GST on importation, and build these into pricing and margins.
Key Takeaways
- Reselling genuine products in Australia is legal - your focus is on compliance: consumer guarantees, truthful advertising, product safety and proper use of brand IP.
- There’s no blanket “reseller permit,” but you do need core registrations (ABN, business name, and GST if applicable) and any licences tied to your products or location.
- Set up with a clear structure (sole trader, partnership or company) and use tailored contracts with customers and suppliers to manage risk from day one.
- The ACL requires goods to be of acceptable quality, match descriptions and be fit for purpose; remedies must be offered for major failures.
- Privacy compliance depends on your circumstances, but a clear Privacy Policy and compliant email marketing practices are expected and build trust.
- Protect your brand with trade marks and keep permissions tight when using third‑party brand assets in your store or advertising.
- As your range or channels expand (for example, gift hampers, marketplaces or imports), revisit licences, safety standards and contracts to stay compliant.
If you’d like a consultation on starting or scaling a product reselling business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
