The online shopping agents are almost exclusively from Chinese mainland, and are young migrants or international students looking for flexible ways to help cover their rent and university fees.
The epicentre of the trade is in Sydney, a city with a growing Chinese community and frequent direct flights to China, which makes doing business quicker and smoother.
Earlier this year, Beijing tightened regulations on cross border online shopping, but there is still money to be made, especially in baby milk formula, known as "white gold".
At the height of a boom last year in demand in China for milk formula, a buying surge from daigou attracted criticism in sections of the Australian media for leaving domestic shoppers empty handed.
Daigou came to prominence in Europe by shipping luxury goods such as Gucci handbags to China.
In Australia, the trade revolves around everyday items including food, beauty products, wine and clothes.
"Some of the daigou… establish their own logistics, own e-commerce website and try to formally distribute the products. It is all about trust, that is what daigou is doing - building trust between their clients. They are small but they are a lot of people. If you add them together, they are huge."
Daigou typically charge premiums of about 50% above the retail price in Australia. But even allowing for transport fees, buyers in China invariably pay much less for the same product in a local shop - assuming it is available.
The industry with its home spun roots does have its challenges. Customers must be convinced the goods they receive are genuine, and not fake, and that the supplier is reliable.
Consultants often livestream their visits to supermarkets and chemists to prove the authenticity of the goods they send. It is an industry founded on trust.
"The income from daigou is reasonable compared to other working opportunities like working in a restaurant and that sort of thing. The profit is really enough to cover your rent. It is easy to do that," the 24 year old student told the BBC.
"The biggest reason for me to do daigou is to not work in some company or to work in a restaurant. It is flexible."
These freelance exporters have created thousands of trading routes both small and big into China, a market that can be almost impenetrable for some Australian companies, and others from New Zealand. Increasingly firms are collaborating with specialist consultants to harness their contacts and expertise.
"We think daigou are good for both the local economy... and they are very good for our business," says Peter Nathan, chief executive of A2 Milk, a New Zealand baby formula manufacturer that also operates in Australia.
"We clearly believe they are a positive force and it's fair to say that it is something we are assessing."
In Sydney, a multi million dollar export industry starts with a simple trip to the shops.
She labours with tins of infant food, supplements and skin lotions from a discount chemist to sell to customers back home in China.
Rika has worked part time for the past two years as a daigou, a freelance retail consultant.
She is glued to her phone and tablet, using the messaging app WeChat to build a network of 300 clients who aren't afraid to pay premium prices for trustworthy Australian goods.
In Australia, it's estimated there are 40,000 daigou, which means "on behalf of" in Mandarin.
The word daigou(procurement service) has been produced in China, and the specific time and place of origin has not been verified. Judging from the industry trends in recent years, the living space through purchasing by friends has become narrower and narrower.
The epicentre of the trade is in Sydney, a city with a growing Chinese community and frequent direct flights to China, which makes doing business quicker and smoother.
Earlier this year, Beijing tightened regulations on cross border online shopping, but there is still money to be made, especially in baby milk formula, known as "white gold".
At the height of a boom last year in demand in China for milk formula, a buying surge from daigou attracted criticism in sections of the Australian media for leaving domestic shoppers empty handed.
Daigou came to prominence in Europe by shipping luxury goods such as Gucci handbags to China.
In Australia, the trade revolves around everyday items including food, beauty products, wine and clothes.
"Some of the daigou… establish their own logistics, own e-commerce website and try to formally distribute the products. It is all about trust, that is what daigou is doing - building trust between their clients. They are small but they are a lot of people. If you add them together, they are huge."
Daigou typically charge premiums of about 50% above the retail price in Australia. But even allowing for transport fees, buyers in China invariably pay much less for the same product in a local shop - assuming it is available.
The industry with its home spun roots does have its challenges. Customers must be convinced the goods they receive are genuine, and not fake, and that the supplier is reliable.
Consultants often livestream their visits to supermarkets and chemists to prove the authenticity of the goods they send. It is an industry founded on trust.
"The income from daigou is reasonable compared to other working opportunities like working in a restaurant and that sort of thing. The profit is really enough to cover your rent. It is easy to do that," the 24 year old student told the BBC.
"The biggest reason for me to do daigou is to not work in some company or to work in a restaurant. It is flexible."
These freelance exporters have created thousands of trading routes both small and big into China, a market that can be almost impenetrable for some Australian companies, and others from New Zealand. Increasingly firms are collaborating with specialist consultants to harness their contacts and expertise.
"We think daigou are good for both the local economy... and they are very good for our business," says Peter Nathan, chief executive of A2 Milk, a New Zealand baby formula manufacturer that also operates in Australia.
"We clearly believe they are a positive force and it's fair to say that it is something we are assessing."
In Sydney, a multi million dollar export industry starts with a simple trip to the shops.
She labours with tins of infant food, supplements and skin lotions from a discount chemist to sell to customers back home in China.
Rika has worked part time for the past two years as a daigou, a freelance retail consultant.
She is glued to her phone and tablet, using the messaging app WeChat to build a network of 300 clients who aren't afraid to pay premium prices for trustworthy Australian goods.
In Australia, it's estimated there are 40,000 daigou, which means "on behalf of" in Mandarin.
The word daigou(procurement service) has been produced in China, and the specific time and place of origin has not been verified. Judging from the industry trends in recent years, the living space through purchasing by friends has become narrower and narrower.
