Two-thirds of small businesses are turning their gaze overseas in search of revenue growth, according to a mid-year pulse check from Sendle, a shipping carrier specifically designed for SMB retailers. The survey reveals that 65% of small business owners are expecting up to a quarter of their total revenue growth to come from international markets this year.

The survey also indicates a positive growth outlook for small businesses, with 48% forecasting growth of up to 25% in FY25, compared to 23% of businesses in 2024. However, the road to growth is not without its challenges. A significant 44% of SMBs express concern about slowing customer demand due to cost of living pressures this sales period, and 61% report that inflation has had a more significant impact on their business than expected, compared to 51% in the previous six months.

"As cost of living bites consumers at home, we're seeing growing demand from small businesses to expand their reach in markets like the US," said Managing Director of Sendle Australia, Laura Hill. "The data shows that attracting new customers continues to be the top challenge for small businesses, so diversifying their customer base across different markets is a sound strategy to weather any economic downturn and future-proof their business in the longer term."

In terms of planning for the peak end-of-year season, 59% of small businesses intend to start preparations only 1-2 months out. "Australian shoppers are increasingly bringing forward their Christmas shopping to October and November to take advantage of key sales events," said Hill. "Our advice to small businesses is the earlier you can plan for peak, the better. Start looking at your sales, marketing and shipping strategies now to ensure you're in a position to capitalise on consumer demand later."

The survey also reveals a call for more delivery options, particularly in regional and rural Australia. Sendle, the first 100% carbon-neutral shipping carrier in Australia, the US, and Canada, is urging Australia Post to open up its taxpayer-funded last mile infrastructure to other carriers. "When there is no choice, small businesses suffer," said Laura. "The monopoly that Australia Post has over Independent Community Licensed Post Offices (LPOs) in regional and rural areas effectively locks out other competition and contributes to higher shipping prices and fewer options. That's why Sendle is calling on Australia Post to open up its taxpayer-funded last mile infrastructure to other carriers to provide more delivery options for regional and rural Australia."

The survey also reveals that 80% of small businesses reported an increase in revenue growth from international markets in the past six months, 25% plan to grow their social media presence and engagement, and 58% plan to offer free shipping this year, with the favoured option of $100 AOV. Meanwhile, 24% of small businesses say sustainability is a high priority, with 82% planning to roll out sustainable packaging in the next six months.