Small business revenues boosted by online activity.

 

Australian businesses that invested in e-commerce have been sheltered from the impacts of COVID-19 compared to those that did not, according to new research by Deloitte Access Economics.

 

The research, produced in partnership with Australia Post, shows that while revenue fell by up to 67 per cent for some industries at the height of the pandemic, the shift to additional online activity saw non-store revenue for the average small businesses  increase by between $105,000 and $708,000.

 

The positive impact of e-commerce from March to August 2020 also included:

 

 

The findings come ahead of the upcoming Christmas peak season and what is expected to be the largest e-commerce event in Australian history, generating $4 billion in spending or 25 per cent higher than last year. 

 

Christine Holgate, managing director of Australia Post (pictured with Qantas CEO Alan Joyce) said the research reaffirmed the unprecedented demand Australia Post had experienced through COVID-19. (Holgate has sinced stepped aside from her role due to management issues related to executive bonuses.)

 

“Australians are embracing home delivery in record numbers and this analysis shows that over the next 12 months home delivery is expected to remain 25 per cent higher than pre-COVID levels. That is a significant challenge for us as the engine room of Australian e-commerce, but one we are preparing for,” she said.

 

Deloitte Access Economics partner John O’Mahony noted that while 51 per cent of businesses expect economic recovery from COVID-19 to be at least 12 months away, there are three areas of focus for businesses in the months ahead.

 

“COVID-19 has changed the way Australians shop with an estimated 45 per cent of purchases set to be completed online in the future. Business looking to set themselves up for long-term success should look to increase digitisation, improve their supply chain resilience, and redesign their business strategy,” O’Mahony said.

 

The report, 'Australia’s eCommerce revolution: how it saved businesses in Covid-19 and future strategies to thrive' ,was commissioned by Australia Post and produced by Deloitte Access Economics. The full analysis is available at auspost.com.au/publications.