Social media is proving to be a powerful tool for Australian small businesses aiming to attract customers internationally.
A recent survey by Sendle, Australia’s courier service for small businesses, indicates that Australian small businesses are increasingly looking overseas for revenue growth in the face of high interest rates and inflation.
A significant 25% of businesses are focusing on growing their social media presence, recognizing its effectiveness compared to traditional methods. According to the survey, nearly two-thirds (65%) of small business owners expect up to a quarter of their revenue growth to come from international markets this year. With Australia’s economic outlook uncertain, 61% of respondents report that inflation has had a more significant impact on their business than anticipated.
“As the cost of living impacts consumers at home, we’re seeing growing demand from small businesses to expand their reach into markets like the US,” said Laura Hill, Managing Director of Sendle Australia. “Attracting new customers remains the top challenge for small businesses, so diversifying their customer base across different markets is a sound strategy to weather economic downturns and future-proof their businesses.”
Adapting Strategies for New Markets
Despite economic pressures, nearly half (48%) of small businesses are forecasting growth of up to 25% in FY25, compared to 23% in 2024. This optimism may be attributed to the opportunities in overseas markets, with 80% of small businesses reporting increased revenue from international markets in the past six months.
Peak Season Planning
Looking ahead to the peak sales season, 44% of small businesses express concern about slowing customer demand due to cost of living pressures. However, the survey suggests that many small businesses might be under-prepared, with 59% planning for peak season only 1-2 months in advance.
“Aussie shoppers are increasingly bringing forward their Christmas shopping to October and November to take advantage of key sales events,” Hill noted. “Our advice to small businesses is to start planning for peak as early as possible, focusing on sales, marketing, and shipping strategies to capitalize on consumer demand.”
In preparation for the peak season, over half (58%) of small businesses plan to offer free shipping, commonly with a $100 average order value. Additionally, nearly a quarter (24%) prioritize sustainability, with 82% planning to implement sustainable packaging within the next six months.
Call for Better Delivery Options and Infrastructure Sharing
The survey highlights a strong demand for better delivery services, especially in regional and rural areas. Over half (53%) of small businesses use multiple couriers to secure the best prices, while 55% call for more e-commerce parcel delivery options to these areas.
Small businesses are also advocating for infrastructure sharing with lower-cost carriers (51%), regulatory measures to drive down prices (44%), and improved competition (44%). These concerns echo findings from a 2024 Roy Morgan survey of 600 rural and remote retailers, where 61% cited delivery service challenges as negatively impacting their business.
“When there is no choice, small businesses suffer,” Hill emphasized. “The monopoly of Australia Post over Independent Community Licensed Post Offices in regional and rural areas effectively locks out competition, leading to higher shipping prices and fewer options. Sendle urges Australia Post to open its taxpayer-funded last-mile infrastructure to other carriers, providing more delivery options for regional and rural Australia.”
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