The Australian printer cartridge wholesale industry is in the middle of a long, painful contraction. What was once a thriving and highly profitable sector has been slowly crushed under the weight of collapsing margins, OEM interference, global e-commerce disruption, and changing consumer behavior. Two significant names—Toner On Demand and Ausjet Inks, both based in Queensland—have recently shut down, highlighting the fragile state of the local industry. Their decline is emblematic of a much larger problem: the traditional wholesale model is no longer sustainable in a market dominated by cheap offshore imports and software-controlled printer hardware.
1. The Economic Squeeze on Wholesalers
Local cartridge wholesalers have been under pressure for years, but the last five have been particularly brutal. Here’s why: E-commerce platforms like eBay, Amazon, and Alibaba allow retailers (and even end users) to buy cartridges directly from overseas manufacturers, completely bypassing local wholesalers. Chinese factories are now producing high-quality compatible ink and toner cartridges for a fraction of the price local wholesalers can match. Australian wholesalers face higher operating costs—including wages, compliance, logistics, and warehousing—which make it impossible to compete on price alone.
OEMs like HP, Canon, Epson, and Brother are more aggressively using firmware updates, chip encryption, and region-specific restrictions to make third-party cartridges unreliable or unusable. The result: a complete collapse of margin and volume for wholesalers whose model depends on bulk cartridge distribution to resellers and retail chains.
2. Toner On Demand: A Queensland Giant Falls
Toner On Demand, based in Queensland, was once one of Australia's largest and most well-known wholesale suppliers of compatible toner and inkjet cartridges. With decades of experience, a wide product range, and a solid reputation among resellers, they were considered a reliable pillar of the industry. But over time, their business model became unsustainable. Firmware lockouts made it difficult to keep up with chip technology on newer cartridges. Cash flow bottlenecks emerged as resellers went out of business or delayed payments.
Excess inventory of soon-to-be-obsolete products (due to OEM updates) tied up capital and warehouse space. International suppliers began selling directly to Australian customers, often undercutting Toner On Demand’s prices by 50% or more. By early 2025, the company ceased operations, leaving behind a gap in the market and a warning to others still relying on traditional wholesale distribution.
3. Ausjet Inks: Another Queensland Casualty
Also based in Queensland, Ausjet Inks was known for its innovation in bulk ink systems, refillable cartridges, and printer maintenance products. For many years, they provided not only generic cartridges but also continuous ink supply systems (CISS), refill tools, and support for print service technicians across Australia. While Ausjet’s niche offerings kept them relevant longer than some competitors, they ultimately couldn’t escape the same systemic issues. Declining demand for refillable systems as printers became more disposable and harder to modify.
OEM firmware updates that regularly blocked refilled or CISS cartridges from working correctly. A shrinking base of resellers and technicians as print volumes declined and many small repair shops shut down. The rising cost of development—keeping up with updated chips and compatibility requirements became too expensive for a small Australian wholesaler. By early 2025, Ausjet had quietly exited the market after decades of service.
4. OEMs and the War on Aftermarket Ink
At the heart of many of these closures is the aggressive stance OEMs have taken to protect their consumables revenue. Manufacturers like HP, Epson, Canon, and Brother are no longer just selling printers—they are selling locked ecosystems. Tactics used to undermine third-party cartridges include: Firmware updates that disable third-party chips (often pushed automatically online). Encrypted microchips that authenticate OEM cartridges and reject alternatives. Dynamic region coding, making it impossible to use cartridges from different global markets. Legal threats and patent enforcement against compatible cartridge manufacturers.
Each of these tactics makes life harder for both end users and wholesalers. The result is a supply chain that’s constantly playing catch-up, investing in R&D just to stay functional with newer printers.
5. A Shrinking Market: Less Printing, Fewer Sales
Adding to the wholesalers’ woes is a fundamental change in how Australians use printers. Simply put—people are printing less. Paperless offices are now standard in many industries. Digital documents and e-signatures have replaced printed forms. Schools, banks, and government services are increasingly pushing digital communication.
At home, many users now go months without printing anything, especially as mobile devices have made viewing and sharing digital content effortless. Printers themselves are also becoming more disposable. Cheap inkjet printers now sell for as little as $39—sometimes less than the cost of a full set of cartridges. When faced with high genuine cartridge prices, many consumers choose to replace the entire printer rather than buy new ink. This reality has crushed cartridge volumes across the board.
6. What's Left for the Survivors?
The few Australian wholesalers still standing are either:
1. Diversifying into new industries like 3D printing, label printing, or POS systems
2. Specializing in niche or legacy products that require more technical expertise
3. Creating their own branded cartridges with strong quality control and local support
4. Or pivoting into B2B managed print services, offering ongoing support contracts and toner management for offices and schools
But for traditional ink and toner wholesalers, the message is clear: adapt or disappear.
Conclusion: A Changing of the Guard
The closures of Toner On Demand and Ausjet Inks, both long-standing players in Australia’s printer cartridge industry, mark a sobering turning point. The golden era of printer cartridge wholesaling in Australia is over. Global competition, restrictive OEM tactics, reduced demand, and the rise of e-commerce have left little room for the old model to survive. These two wholesalers are not the only ones to close shop however they were two of the biggest wholesale printer consumables companies in Australia. For any business still operating in this space, it’s time to innovate—or exit before the ink runs dry.