Australian Retailers Ramp Up Holiday Discounts
In the face of economic challenges and softer consumer spending, Australian retailers are gearing up for the holiday shopping season with a focus on offering substantial discounts to attract shoppers, reveals research conducted by Fiverr, the company revolutionising how the world works together. According to the research, which sought to understand how Australian small-medium business (SMB) owners and decision-makers are preparing ahead of the major holiday sales season, 98% plan to offer discounts this year. Further, three in five (60%) will offer bigger holiday discounts this year compared to last, with a quarter of revenue expected to come from major shopping discount days.
“Retail has felt the effects of economic pressures and its impact on consumer spending as much, if not more, than any industry,” said Oliver Woolrych, Community Manager at Fiverr Australia. “Peak season comes at an opportune time, presenting an opportunity for retailers to tap the surge in demand ahead of the festive period. According to our research, retailers are using discounts to acquire and retain customers, and major shopping discount days—like Black Friday, Cyber Monday and Prime Day—significantly drive annual revenue.
“Our research shows that despite the cost of living crisis and reduced consumer spending retailers are optimistic about sales season. However, a significant challenge they are facing is staff shortages, with Australia’s workforce unable to meet demands. To assist in areas such as e-commerce, social media marketing, and SEO & SEA, retailers are turning to freelancers to offer additional support during this time. Freelancers give companies their greatest competitive advantage, flexibility; allowing them to scale up and down as necessary.”
Among respondents in Australia, data showed:
SMBs are offering bigger discounts than last year
The average discount is 24%.
On average, SMBs expect a quarter (25%) of holiday season revenue to come from sales.
Smaller businesses are more likely to offer bigger discounts than last year, compared to businesses with larger turnovers which will offer smaller discounts.
SMBs have a positive outlook for holiday sales
Almost half (44%) expect sales to increase significantly, with the majority (91%) expecting it to ‘somewhat’ increase.
Two in five (38%) expect a quarter (21%-24%) of their holiday season revenue to come from major shopping days, such as Black Friday, Cyber Monday and Prime Day.
SMBs are investing in AI as a strategy
Almost three in five (58%) are planning to use AI, like ChatGPT, to expedite work.
Influencer promotions and partnerships are still a widely used method of marketing, with over half of SMBs surveyed (52%) investing in it this holiday season, followed by organic content on social media (49%).
Almost half (49%) are planning to invest in expedited shipping or improved logistics.
Hiring is increasing ahead of the holiday period
Almost half (46%) cited staff shortages as one of the biggest challenges they’ll encounter this holiday season. As a result, three-quarters (73%) have hired or plan to hire seasonal employees.
Two in five (40%) have been working or are planning to work with freelancers to offer additional support during the holiday season.
The most popular freelancer services SMBs are seeking is e-commerce (39%), followed by social media marketing (38%) and SEO and SEA (34%).
Methodology
The research was conducted by Censuswide, among a sample of 3,016 small-medium business (SMB) owners/leaders across retail and e-commerce in the UK, USA, Netherlands, Germany, France and Australia. Among this sample was 501 Australian SMB owners/leaders. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.
About Fiverr
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