One in three Australian small to medium (SMB) businesses have their sights set on international expansion, new research from Amazon Australia indicates.
The 'Global Empowerment' study commissioned by the eTailer found that one in five Aussie SMBs already operating or hoping to expand to North America, while one in three are already operating or hoping to in New Zealand.
According to the study, the disruption from COVID has influenced many to consider diversifying their customer base and make their business more resilient to localised lockdowns or disturbances.
Additionally, 49% of SMBs cite an increase in revenue as a key factor for expansion, while future proofing the business (28%), and the personal sense of achievement (28%) also scored highly.
Meanwhile, those that have already taken the leap into international waters are pleased with their decision, with 96% having no regrets, while 80% said they wished they'd taken the step earlier.
The study revealed that 60% of those operating in overseas markets increased their customer base and a quarter reduced risks during low sales periods by capitalising on peak seasons in other regions.
According to Amazon Australia, 11,000 Australian businesses – many of which are SMBs – now sell through the platform, selling more than 25 million units in the past year.
However, despite the positives to international expansion, the study shows that there is still a great deal of hesitation among those looking to take the step.
SMBs indicated that they need support or further information regarding the following areas:
• Cost effective solutions to handle shipping and fulfilment (28%)
• Navigating local legal and compliance requirements (32%)
• International marketing support (30%)
• Local taxation advice (34%)
• Mentorship (23%)
Amazon Australia's Global Empowerment Study was conducted by McCrindle in October 2021, surveying 1,003 Australian small to medium sized business owners.