Only a month out from the December holiday seasons, eCommerce retailers are witnessing signals of renewed consumer confidence as international sales drive considerable spending growth, according to the Digital Economy Index by Airwallex, an Australian-founded leading global financial platform.
After a “rocky” start to 2024, with Q1 online sales down “36.7 percent year-over-year, Q3 data reveals a turnaround, with online spending up 16.4 percent YoY.”
Australian eCommerce businesses are experiencing an “80.1 percent growth in international sales, highlighting a considerable shift toward overseas markets amid a challenging economic climate.”
Airwallex Head of Enterprise ANZ, Huw Griffiths, sees this as a strategic pivot by Australian businesses. Griffiths noted that 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 added that going global has “never been easier for ambitious Aussie businesses – no matter how new or small.”
Regional highlights from the Index include:
- Western Australia businesses lead the nation with a staggering 272.5 percent YoY increase in online spending
- This is followed by Victorian (20.9 percent) and New South Wales (12.1 percent) businesses
- Queensland businesses experienced a decline in online spending in Q3 compared to the same period last year, down 35.4 percent YoY
The Australian Bureau of Statistics (ABS) supports these findings, reporting a “12.09 percent YoY increase in online retail sales from Q3 2023 to Q3 2024, while the Consumer Price Index (CPI) has risen modestly at 2.8 percent over the last 12 months.”
The analysis also found that business deposit volume (which includes sales revenue and other deposits) for retail and eCommerce businesses “had grown a healthy 22.35 percent YoY.”
In August, Airwallex announced it had passed “$100 billion in annualised transaction volume for the first time, reflecting the breadth and depth of digital business growth.”
Griffiths advises businesses to optimize their online presence and cross-border capabilities as holiday season momentum builds.
He also mentioned that Australia’s eCommerce 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.”
Methodology
The Digital Economy Index captures deposit and payment volumes as an indication of consumer confidence for “different types of digital businesses in Australia.”
This analysis takes into account a combined sample of “3,785 Airwallex customers.”
As covered, Airwallex is a financial platform for modern businesses, offering trusted solutions to manage payments, treasury, and spend management.
With their infrastructure, Airwallex takes the “friction” out of global payments and financial operations, empowering businesses to “unlock new opportunities and grow beyond borders.”
Founded in Melbourne, Airwallex supports businesses globally.