Digital Economy Index: Global shoppers snap up Aussie goods as Black Friday approaches

2024 has been a tough economic year for Aussies, so it should be no surprise that our businesses have similarly felt the pinch. With intense inflation putting a strain on the costs of living and doing business, the start of the year saw hesitant spending and a national tightening of the belt. 

As we head towards the end of the year, however, pressures are starting to ease. This last quarter has shown the green shoots of market recovery, setting the scene for a strong Black Friday and festive season. 

The Airwallex Digital Economy Index reflects a sample of over 3,500 Australian Airwallex businesses. Anonymously examining their deposit and payment volumes, our analysts are able to paint a picture of consumer confidence around our digital businesses. 

This quarter? It’s an image of optimism to finish the year strong. 

Spending has bounced back 

Early 2024 saw Aussie shoppers consumed by the cost of living crisis, leading to a significant reduction in discretionary spending. Our index found that in the first quarter, online sales fell by 36.7%, when compared to the same period in 2023.

Over the course of the year, however, the dial has switched. Spending has rebounded in the most recent quarter, which saw a 16.4% year-on-year increase, signalling a promising recovery in time for the festive season. 

No doubt set to snap up gifts for loved ones (and perhaps doing a little retail therapy after a tough year), Aussies are expected to spend a record-breaking $6.7 billion during Black Friday weekend, up 5% from 2023. 

With only a week to go until the biggest event on the shopping calendar, businesses across the nation can harness this fresh wave of consumer excitement. Whether you're a local business or a global retailer, the opportunity for a lucrative close to the year is within reach.

International demand is rising for Aussie goods

The recent surge in global interest and purchases of Australian products has been a notable trend in the market. As the world's attention turns towards Australia’s unique offerings, international sales are soaring. Our Index found that Ausssie eCommerce businesses are experiencing an impressive 80.1% growth in international sales. 

Airwallex Head of Enterprise ANZ, Huw Griffiths, sees this as a strategic pivot by Australian businesses. “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 said. “Going global has never been easier for ambitious Aussie businesses – no matter how new or small.”

This trend is particularly encouraging given the decline in spending by local consumers in 2024, with the index indicating a 36.9% drop in domestic purchasing with eCommerce businesses. This could signal that in order to experience true growth, retailers can’t just rely on local spending or support anymore.

From distinctive fashion brands to premium food and wine, Australian goods are gaining a global reputation for their exceptional quality and craftsmanship. This international demand is not only beneficial for immediate sales figures but also presents a long-term opportunity for Australian businesses to establish a strong presence in the global market.

Some of our favourite Aussie eCommerce brands that are winning hearts (and wallets) overseas? Just a few of our incredible customers making waves include July, KeepCup, Vinomofo, and Poppy Lissiman. And funnily enough – they all make wonderful Xmas gift ideas too. Just a tip from us to you!

Growth is fastest for businesses outside of the major cities

Interestingly, the resurgence of consumer spending is not being seen equally across Australian states and territories. You might think that the capital cities would be driving the biggest increase in numbers, but it’s actually our friends in WA. 

Congratulations to our West Coast eComm businesses, this quarter you led the nation by experiencing a staggering 272.5% increase in customer spending compared to the same period last year. This could be attributable to the boom of efficient online purchasing and shipping, bringing amazing WA products to the world. 

Next on the leaderboard are Victorian businesses, who saw a 20.9% increase in customer spending, and New South Wales, who saw a 12.1% increase. 

While declining customer spending was generally slim across the board, it seems like Queensland businesses faced significant challenges – experiencing a significant 34.5% decrease in customers spending compared to the same period last year. We know that many brilliant eComm businesses are based in QLD, and we hope to see them bounce back to competitive spending rates in the final quarter. 

Maximise your sales during Black Friday and beyond

We get it! Black Friday weekend is almost here, and eCommerce businesses aren’t likely to overhaul their sales strategy at the eleventh hour. Go forth and sell with our full support! 

But after the peak sales season wraps, maintaining and growing your sales momentum requires a longer-term approach. Taking this data into consideration, this could mean making sure that your product is primed and accessible to a global customer base.

Airwallex Payments features help take your products to the world, by offering payments in your customers’ local currency and with their preferred payment methods. We service over 160 payment methods worldwide in over 120 currencies, reducing friction and maximising speed at your checkout (and helping you slash those pesky cart abandonment rates). 

Our payment tools seamlessly connect to our amazing Business Account, and all of the multi-currency and digital financial operations capabilities that come with it. Together, they could be the right choice to help you champion your checkout for an epic sales performance in 2025. 

This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.