1 in 3 Aussie SMBs to plan international growth in next 2 years, finds Amazon Australia
One third of Australian small and medium business owners plan to expand internationally in the next two years, according to a new Global Empowerment study commissioned by Amazon Australia.
The report showed that many Australian SMBs have their sights set on North American customers with more than one in five already operating or hoping to expand to one of the world’s largest regions. Trans-Tasman business growth tops the list, with more than one in three businesses already operating in or planning to expand into New Zealand closer to home.
The study, which surveyed a national sample of Australian SMBs, reveals business owners’ aspirations to increase revenue, expand their customer base and future proof their business as the COVID-19 pandemic continues. More than three in four SMBs with existing international footprints cited the impact of COVID-19 as a factor encouraging them to consider global growth.
Alongside the study, new data revealed by Amazon on the growing success of Australian businesses selling in its global stores shows the potential for e-commerce to support global ambitions.
More than 11,000 Australian businesses, many of which are SMBs, now sell through Amazon and sold more than 25 million units across its Australian and international stores in the past year. Currently, 60% of Australian sellers export their products through Amazon to international customers, with export sales by Australian sellers increasing by 30% on the prior year.
Further insights from the Global Empowerment study include, Key motivators for growth: Whilst increase in revenue (49%) and expanding customer base (43%) are key motivators for SMBs to grow internationally, future proofing of the business (28%), and the personal sense of achievement (28%) also score highly.
Pandemic drives export consideration: Almost one-third of Australian SMBs with existing international footprints agreed that operating in other countries enabled them to navigate the challenges of COVID.
Two-thirds of existing exporters recognised an increase in global sales over the past 18 months, and 77% cite the impact of COVID as a factor encouraging them to consider further international expansion.
No regrets: For those SMBs who have already expanded to international countries, 96% have no regrets, and over 80% wished they’d embarked on their global journey sooner. With over a quarter reducing risks during low sales periods by leveraging peak seasons in other regions, and more than 60% increasing their customer base, it’s not surprising to see almost 80% now planning to expand to additional countries within the next 12 months. SMBs’ hunger for support on global growth journeys.
Despite a clear desire to expand internationally, the study found that a quarter of SMBs admitted to feeling overwhelmed, and 1 in 5 unsure of where to begin. More than one in four Australian SMBs feel that they don’t have the right tools, support or knowledge to expand globally on their own.
Local businesses are hungry for support across the following categories.
Cost effective solutions to handle shipping and fulfillment (28% navigating local legal and compliance requirements (32%) marketing support (30%) local taxation advice (34%), and mentorship (23%).
Amazon Marketplace Australia head, Amit Mahto, said that more local businesses were now harnessing Amazon’s hundreds of millions of worldwide active customer accounts, fulfillment services, and hundreds of seller tools, features and educational resources to support their international growth.
“With so much to think of when reaching overseas customers – from navigating local compliance requirements, product fulfillment, whilst building an understanding and marketing to a completely new audience – the small business seller faces many potential challenges,” said Mahto.
“We aim to be a destination where local sellers harness the benefits of Amazon’s brand recognition, tools and features to help them list and manage products, and our fulfillment services around the world. We’re extremely proud and humbled by the diverse and ever-growing community of sellers building their businesses with our global stores.”
Amazon Australia has launched over 100 new features, tools and services for its local sellers since January 2019.
Amazon Australia seller data was sourced between the period of 1 September 2020 to the 31 August 2021.
All data unless stated otherwise is from the ‘Global Empowerment’ study commissioned by Amazon Australia and conducted by McCrindle in October 2021, surveying 1,003 Australian small to medium sized business owners. The survey is a random sample of the general population of SMB business owners across Australia, and not a survey of Amazon third-party sellers.
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