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Latest data from Airwallex found international sales rose 80 per cent last quarter as retailers used overseas markets to drive growth.
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E-commerce rebounds ahead of peak season on surging global demand
27 November 2024
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Online retailers are experiencing a turnaround after a rocky start to the year fuelled by surging international sales heading into the critical holiday shopping season.
Third-quarter data from Airwallex’s Digital Economy Index showed a 16.4 per cent year-on-year increase in online spending from consumers, and over an 80 per cent spike in international sales.
Airwallex said the findings highlighted a “considerable shift” toward using overseas markets to drive growth amid a challenging economic climate with the consumer price index rising 2.8 per cent over the past year.
“From distinctive fashion brands to premium food and wine, Australian goods are gaining a global reputation for their exceptional quality and craftsmanship,” it said.
“This international demand is not only beneficial for immediate sales figures but also presents a long-term opportunity for Australian businesses to establish a strong presence in the global market.”
Regional head of enterprise Huw Griffiths said going global “has never been easier for ambitious Aussie businesses – no matter how new or small”.
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“More Australian businesses are using this as an opportunity to drive and accelerate growth by enabling their products and services through cross-border channels,” he said.
Airwallex's Digital Economy Index, which analysed the deposit and payment volumes of 3,785 customers, roughly reflected a 12 per cent year-on-year increase in ABS online retail sales statistics in Q3 2024.
The index also found marked disparities among states, with Western Australian businesses leading the charge with a “staggering” 272.5 per cent increase in online spending, followed by Victorian (20.9 per cent) and NSW (12.1 per cent) businesses.
Meanwhile, e-commerce businesses based in Queensland experienced a 35.4 per cent decline.
It comes after a sluggish start to 2024 with shoppers paring back discretionary spending due to the cost-of-living crisis.
Airwallex’s index found online sales fell by 36.7 per cent in the first quarter of the year when compared to the same period in 2023.
It said the recent turnaround in spending and sales “set the scene” for a strong finish to the year, with shoppers expected to spend $6.7 billion during the upcoming Black Friday weekend, up 5 per cent from 2023.
Retailers were encouraged to “harness this fresh wave of consumer excitement”.
“With only a week to go until the biggest event on the shopping calendar, businesses across the nation can harness this fresh wave of consumer excitement,” Airwallex said.
“Whether you're a local business or a global retailer, the opportunity for a lucrative close to the year is within reach.”
Griffiths said businesses should optimise their online presence and cross-border capabilities as the holiday season gained momentum.
"Australia’s e-commerce landscape is poised to thrive in Q4, so now is the time for businesses to leverage strong digital strategies to capture increased consumer demand, both domestically and internationally," he said.
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