Three High Compliance Categories You Need To Know When Selling On Australian Marketplaces

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Dropshipping is the dream businesses for many people where you mostly sell without keeping an inventory. It is a profitable business model, encouraging many sellers to move to online selling instead of stores.

However, selling on marketplaces differs from selling in a store. You do not have to worry about compliance with the platform’s terms and conditions when selling physically. You can sell anything you please (legal in your country) without anyone else’s interference.

But it is not the same with marketplaces.

Often, dropshippers contact us, mentioning, “XYZ platform removed my listing twice; what am I doing wrong?”

Safety and compliance issues are among the major reasons platforms remove your products. You might believe the product is harmless, but the marketplace probably does not feel the same. They usually have their own rules you must follow if you want to sell on those marketplaces.

Hi! I’m Still, the founder of Wefulfil; we are an Australia and China-based supply chain company that helps businesses start and scale.

In this article, I will guide you through the intricate world of product safety compliance for your online business in Australia.

So, if you are also wondering, “I am not selling ammunition, why does the marketplace keep removing my listing?” this article is for you!

Read this article till the end to understand how compliance works on online ecommerce platforms.

Safety Compliance on Marketplaces

Recently, marketplaces have been tightening their safety compliance requirements, which can be quite challenging, especially for sellers new to this online retailing journey.

For example, you might conduct in-depth research to find products that interest customers. You also look for suppliers and talk to them before finally adding the product to the marketplace. However, the marketplace removes your listing. You add it again, but the same thing happens.

If the platform mentions removing your product because of safety compliance, nothing except meeting the requirements will work!

So, we will discuss three key product categories under tight scrutiny for safety compliance. We will also share insights on how to stay compliant to keep your business thriving.

1.     Electronic Products

Most dropshippers opt for smaller products and avoid this category because of their fragile nature and higher associated costs in case of damage. Yet, electronics are among the most mature ecommerce markets, with a total global 2023 revenue of US$837.2 billion.

Despite the gigantic revenue, stepping into the electronic ecommerce market is quite challenging. Some of the most critical electronics security and compliance concerns include:

  • Products with plugs require RCM certification, which is necessary if you want to sell electronic products online.
  • Products with button batteries must have an IEC certificate, and secure button battery boxes are mandatory to sell such products on online marketplaces. This is crucial to ensuring the end user’s safety and preventing unfortunate incidents that could lead to product recall or complains regarding carelessness.
  • Products that double as a power bank require an IEC, MSDS, and UN 38.3 certificate.

These might sound like a bunch of fancy acronyms but these certifications are vital to ensure your products are safe to use and compliant with marketplace regulations.

A failure to comply with marketplace rules and terms would lead to listing removal, and you may not be able to sell electronic products on the platform.

2.     Kids’ Products

The second category that requires necessary safety compliance is kids’ products. If you believe that you can sell kids’ clothes and accessories without any issues, we’re sad to break it to you, but it’s not so.

Whether you want to sell toys, clothes, or even kids’ furniture, all these items need to meet compliance criteria and certain safety standards.

For example, kids’ clothes must comply with AS/NZS 1957:1998 standards for care labeling. This standard covers everything from general care to warnings, washing, drying, ironing, and dry cleaning.

Similarly, kids’ toys and furniture also have specific safety standards that you must meet to avoid facing problems while selling them online.

When you have all the necessary certifications and standard compliance, marketplaces will not stop you from selling these products online.

3.     Healthcare Products

Healthcare products are always under strict scrutiny whether you sell them online or offline.

Because of their direct impact on a person’s health, healthcare products cannot be sold without adequate vigilance. Even a slight carelessness in healthcare and medical products can lead to emergencies. Thus, marketplaces also emphasize the safety compliance of healthcare products.

For example, during COVID-19, many thermometers and finger oximeters were removed from marketplaces due to a lack of a TGA approval tag.

So, if you plan to sell healthcare products, you must ensure that your product meets all the necessary standards and get your TGA number.

Healthcare products

How to Avoid Compliance Issues when Selling on Marketplaces?

Now that you know the high compliance categories you must pay extra attention to when selling on Australian marketplaces, the question is, “Can I avoid falling into the compliance trap?”

Yes, you can!

Here’s how you can save yourself from compliance issues when selling on Australian marketplaces:

  • Find suppliers with a good reputation and all necessary certifications for their products. Besides ensuring the basic safety standards and certificates, ask for particular certifications and standards related to the product. For example, the supplier must have the RCM certificate when selling products with plugs. Similarly, any other products from the above-mentioned categories must meet adequate safety standards and certifications.
  • Alternatively, you can steer clear of these three categories, especially if you are new to dropshipping. It’s always best to start with products that do not require compliance certifications to avoid the extra hassle. Once you understand the business and compliance landscape, you can slowly expand to other categories like kids’ products, electronics, and healthcare.

Final Takeaway

Selling on marketplaces can be hard when you face challenges from the online platform. Many new sellers report removing their product listings from marketplaces due to compliance issues. As dropshippers believe the products are harmless, so they wonder what the problem is. Electronics, kids’ items, and healthcare products are three high-compliance categories that require safety rules and standards compliance. You might face issues selling products from these categories on marketplaces without adequate documents.

Make sure to deal with a supplier with all the necessary certifications for these products. Alternatively, you can avoid selling products in these three categories if you are new to dropshipping; expand slowly to high-compliance categories when you understand the compliance landscape better.

Mr. Still Zhu
Mr. Still Zhu

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