Nearly two-thirds of small businesses in Australia are calling for government intervention to protect local retailers from overseas marketplaces, according to new research by Sendle, the first '100% carbon-neutral' shipping carrier in Australia, the US, and Canada.

The findings come at a time when weekly parcel volume is expected to surge by 45% due to the busiest retail season of the year, Sendle said.

Key findings from Sendle's Small Business Survey include: nearly half of SMBs are concerned about overseas competition and feel the pressure to match up; almost one in three SMBs are forecasting up to 25% revenue growth this peak season compared to the same period last year; over a third plan to expand into new markets to grow, with 42% already expecting up to a quarter of their growth to come from overseas markets in 2025.

"Sendle’s latest survey shows that Australian small businesses are concerned about competition from overseas retailers who can sell a broad range of products at very low prices," said Laura Hill, Managing Director of Sendle. "To attract and keep customers, we have seen a lot of small businesses hunt around for better shipping rates and options, in order to offer free or discounted shipping to customers."

The survey results are significant in light of the government's plans to revamp competition with the National Competition Policy. The survey also reveals that one in two small businesses are offering free shipping to attract customers, despite cost-of-living pressures. 43% of SMBs said overseas marketplaces have increased expectations of free shipping among consumers.

"Australia Post has a monopoly in regional and rural areas, which has led to less competition and higher shipping rates for small businesses who have no other options," said Hill. "Limited shipping options make it difficult for small businesses to compete online as customers expect faster and affordable shipping, and eat into their profit margins, making it harder for them to stay ahead in a highly competitive retail industry."

37% of small businesses believe the government should intervene to curb rising shipping costs in Australia, while one in three want to see more competition among carriers. One in two small businesses also want to see more affordable delivery options for overseas shipping.

"Small businesses are resourceful and resilient, and are looking at how they can market their brands, reach their target audience, and drive sales, even with limited budgets," Hill said. "Tapping into new markets can help small businesses to find new customers and boost their bottom line, which is why it's crucial they can get competitive shipping rates to do this."

Despite competition and economic uncertainty, SMBs are cautiously optimistic about sales growth this peak season. Looking ahead to 2025, over a third of SMBs plan to expand to new markets to grow their businesses. Sendle is the first shipping carrier specifically designed to serve the needs of small eCommerce businesses. The survey was conducted online in October 2024 with a total sample size of 336 submissions across Australia.