Amazon Australia has partnered with independent research agency YouGov to reveal the experience of SMBs from various sectors throughout the pandemic, particularly to understand how online exports contributed to their business activity.
The results showed that virtually all (99%) of SMBs surveyed that use online marketplaces for exporting goods, believe there are benefits to using online stores.
This belief is backed up by evidence, with survey results revealing that Australian SMBs using online stores to export are almost twice as likely to report revenue growth overall (64%) compared with those who aren’t (43%).
According to Amazon Australia’s own data, more than 14,000 Australian businesses, many of which are SMBs, now sell in Amazon’s stores. They sold more than 27 million units around the world in the 12 months to 30 June 2022 (that’s 50 products every minute), increasing more than 15% on the year before.
It’s estimated that Australian businesses selling on Amazon globally have created more than 20,000 jobs in Australia to support their Amazon-related business activities.
The SMB Empowerment Report explores how Australian SMBs have navigated the challenges of the past 12 months, their confidence in the business landscape and how online sales and exports are helping to boost revenue.
Meet Raph at Bakslap
By selling globally with Amazon, Bakslap is continuing to grow its presence around the world.
Since exporting, Bakslap have seen an 8.9% increase in sales and added an expanded international customer base. The 2021-22 financial year saw additional growth and increase in export revenue (based on the previous year).
But for Raph, starting to export his products, primarily a new tool to apply lotions and sunscreen to hard-to-reach-places, was about far more than an increase in customer base and revenue, it was about spreading his message further than just Australia.
“We want to get to as many people as possible in Australia and overseas. Amazon allows you to share your brand story. To be able to do this to a whole new customer base in Australia and the US is why we jumped at the opportunity to join Amazon.”
After tragically losing his sister Tess to Melanoma, Raph developed a product to spread the message about sun safety and get the conversation started about skin cancer. “I wanted to be able to impact lives,” says Raph, “I created something that was a little bit different, that at least started the conversation.”
The power of exporting with digital capability
Exporting online can help deliver resilience, stability, and revenue growth. This research demonstrates the value of the export opportunities to provide SMBs with greater certainty in times of economic instability. Exporting SMBs, especially those who are using online stores to export, are more likely than those from businesses who are not currently exporting to report that their overall revenue increased.
The report shows that six in ten (57%) SMB owners and key decision makers believe that there are particular benefits of international expansion for their businesses.
SMBs who export internationally were more likely to have reported increased revenue with 53% of exporting SMBs increasing their revenues versus 35% for who did not export. Australian SMBs using online stores to export are almost twice as likely to report revenue growth overall (64%) compared with those who weren’t (43%) and are more likely to report revenue growth from exporting specifically.
Meet Kate at HotTea Mama
For HotTea Mama, the major business benefits they have experienced through selling on Amazon.com.au have been in shipping and logistics.
“In Australia we have gone for Fulfilment by Amazon. Amazon connects customers to HotTea Mama’s products, takes the pressure off us for the delivery logistics and our sales deliver us a consistent cash flow, while we work to build our brand through wholesale and larger retail accounts.”
HotTea Mama has now reached people all across the globe, with their products popping up in the UK, USA, Dubai and the UAE, Poland and Germany. Based on their success they have expanded our range to support all women in their wellness; from periods to pregnancy, birth to parenthood, sleep and menopause.
“We knew we were a good fit for Amazon because even though people don’t know our brand name, we meet a specific need that people are searching for.”
Opportunities for growth and sustainability
According to SMBs who export via online stores, there are a range of advantages. SMB owners and key decision-makers told YouGov the most important benefits:
- Ease of use (56%)
- Direct access to customers (51%)
- Reputation of the online store brand (40%)
- Inventory and shipping management (37%)
- Customer service/support (36%)
- Marketing support (34%)
- Financial assurance (26%)
But businesses are not only concerned about their operations from a bottom-line perspective. Importantly, the majority of SMB owners and key decision makers are already undertaking sustainability practices in their businesses, with 23% reporting that implementation is at an advanced stage and 29% saying they are at an intermediate stage.
Amazon Australia empowers SMBs
To help all businesses grow and export online, Amazon Australia has launched more than 100 tools and features since 2019. From shipping and fulfilment services, including Fulfilment by Amazon (FBA) to tools like Amazon Brand Analytics, there are a range of tools to support SMBs building and growing the success of their business.
Our ongoing aim is to empower current and next generation entrepreneurs and brand owners to grow, digitise and sell locally, as well as globally.
Read the full Amazon Australia SMB Empowerment Report here.