I am planning to host a dropshipping website. My customers will be from USA and Australia. I am choosing a cloud host for hosting this website. But my confusion is that what location should I use for the server?
I’ve been researching the web and managed digital ocean cloud hosting comes close to my pick.
Just a heads up that you might get a better response in a hosting community forum or similar. This isn’t particularly Grav-specific. Still, nothing wrong with asking and you could get lucky here, good luck 
Digital ocean is perfect for what you want. You could also take a look at Amazon AWS or Google Cloud. Digital ocean is more friendly and gets you going quicker. If you’re not familiar with server administration (managing your vps) and you wanna run a dropshipping website on grav, than you should keep security in mind when choosing your hosting party, and a managed package might be better for you.
1st year for free:
https://aws.amazon.com/free/