Despite the current negative economic outlook, 80 per cent of Australian small businesses are forecasting online sales growth in the next 12 months.
According Sendle’s 2022 Small Business Survey, which surveyed over 900 small businesses in Australia on their expectations and sentiments for the year ahead, 37 per cent of small businesses expect a 25-75 per cent growth in online orders over the next 12 months, with those in the automotive and marine industry predicting the strongest growth in 2023, followed by those in the office furntiure and supplies and the food and beverage industries.
“Sendle’s 2022 Small Business Survey tells us that it’s not all doom and gloom for small businesses,” Laura Hill, Managing Director of Sendle Australia, said. “The recent Black Friday and Cyber Monday sales may explain this confidence, with our parcel volumes up 50 per cent during the November sales period. Many small businesses continue to see an uptick in online sales growth, as consumer spending remains resilient.”
Small businesses do admit that 2023 will be a more challenging year for them compared to 2022, with 51 per cent seeing the rising costs of products and services as their top challenge when it comes to online sales growth, while only 22 per cent considered finding customers as their top business challenge. However, the report reveals that small businesses are rising above the challenges, thanks in part to the support provided to them by the government – 51 per cent of respondents said they feel satisfied about the support available, which includex government assistance for small-to-medium businesses.
The research also underscores the importance of sustainability, with 34 per cent saying their products are ethically sourced. Of these businesses practising sustainability, 51 per cent came from the food and beverage industry, closely followed by those in the jewellery and accessories and the baby and children sectors at 48 per cent and 45 per cent respectively.
Sustainability is helping small businesses capture a growing audience that cares about the environment, with 34 per cent reporting that demand for locally produced products has increased over the past 12 months. However, it is also worth noting that 32 per cent are unaware whether their products sold are ethically or sustainably sourced. Many still struggle to overcome barriers to implementing sustainable practices, with 32 per cent of respondents reporting they’ve not made any changes to their business model or products.
“Growth is a top priority for small businesses, of course, but what matters is that the growth is smart and sustainable,” Hill said. “Small businesses increasingly recognise that sustainable products and practices are not only good for the planet, but also for the bottom line. However, Sendle’s survey reveals that more educational resources are needed for small businesses to make the transition easier and quicker.”
