Fiverr International Ltd. has unveiled new data exploring how Australian businesses are gearing up for the holiday shopping season. The data, based on a nationwide survey of 504 consumers and 500 small-to-medium business leaders across Australia, was conducted in partnership with Censuswide. The findings reveal a shift in business strategies in response to impending privacy regulations that align with Europe’s GDPR laws.

According to the survey, 24.8% of medium-sized businesses are reducing targeted advertising due to the upcoming privacy regulations. Meanwhile, 41.8% of Australian companies are investing in AI across the customer journey, and 40.8% are optimising logistics and offering faster shipping options.

Content creation and influencer partnerships are also on the rise, with 39.8% of businesses turning to these channels to build direct, owned channels. AI integration is a significant trend, with 68.6% of respondents incorporating it into their operations. Specifically, 84.2% of e-commerce businesses are using AI for chatbots and inventory management.

"The upcoming privacy regulations are really pushing businesses, especially mid-sized ones, to rethink how they approach advertising," said Gali Arnon, Chief Business Officer at Fiverr. "With the rising costs and risks tied to data-driven advertising, along with the new challenges around consent management, companies are being driven to shift toward more sustainable and privacy-compliant marketing strategies. As the definition of personal information broadens and consent rules tighten, brands will have to find new ways to connect with their audiences.”

For the upcoming holiday season, 42.8% of SME owners surveyed are hiring full-time or part-time staff, 40.2% are bringing on seasonal employees, and 40% are leveraging freelance talent. Competition from larger e-commerce brands like Shein, Amazon, and Temu is a major concern for 44.60% of SMBs surveyed.

"For SMBs, the challenge is not just how to compete, but how to outmanoeuvre competitors with far deeper pockets. It's a critical time for businesses to invest strategically, ensuring every dollar spent contributes to long-term growth and customer loyalty," added Ms. Arnon.

When it comes to consumer preferences, 50.79% of respondents prioritise good deals, and 41% value free shipping, while 7.14% still consider sustainable products, and 7.74% prioritise ethical brands.