Australian small business e-commerce revenue exceeds physical store revenue

New research shows e-commerce revenue has surpassed bricks-and-mortar stores to become the main source of income for small businesses in Australia.

New research from internet services company GoDaddy shows that the average Australian small business now generates more than 53% of its annual revenue online . 23 % of respondents said all of their revenue comes from online sales, and 46% said they believe their business could not operate without online channels .

Due to the epidemic blockade, the global e-commerce market has achieved explosive growth and led to a radical change in consumer behavior. According to the online shopping report released by Australia Post in March 2021 , in Australia, the total amount of consumer online shopping increased by 57% year-on-year in 2020 to US$50.46 billion , up from US$321 in 2019 .

According to research conducted by Mastercard in Australia, the number of companies conducting online business in Australia each month has more than doubled from pre- pandemic levels over the past two years , peaking in July 2020.

This data is corroborated by research from GoDaddy , which found that for the majority ( 62%) of small businesses, an online presence is more important than a physical storefront.

Tamara , Managing Director at GoDaddy   Oppen said that due to the pandemic , small businesses were forced to build their online presence and change their operating plans , but two years later, these business owners found that the changes made out of short-term needs are becoming part of long-term plans .

Meanwhile, following the online shopping boom sparked by two years of lockdown , two -thirds of small businesses surveyed are optimistic about the outlook for 2022 for the first time . Although most businesses are optimistic about the year ahead, supply chain disruptions caused by the pandemic remain a major issue even for businesses that have shifted to an online-first model .

The biggest concern for Australian small business owners is a return to lockdown, followed by competition, low customer demand and cash flow.

Looking ahead, online presence is the biggest focus of spending for Australian small businesses in the coming year , with more than a quarter planning to invest in an e-commerce website or online store.

Australia

E-commerce

enterprise