New data that’s been dubbed an “alarm bell” by one of the country’s leading payments companies reveals NSW, Queensland and Tasmania are leading Australia’s battle for online business, according to research from payments fintech Airwallex’s first Digital Economy Index.
Key findings from the Digital Economy Index
1. Online spending is on the decline
Aussies’ online spending has dropped by more than $124 million nationwide in the past year.
2. Three states have seen an increase in online spending
The Index estimates that online businesses in NSW have seen a 12.94% jump in turnover over the last year, while those in Queensland have jumped 6.14% and Tasmania by 1.9%.
3. Three states have seen a sharp drop in online spending
Online businesses in Victoria saw a 25% hit to turnover, while South Australia was down by 13.6% and WA by 36%.
4. Education and travel spending is on the up
Australians are buying fewer clothes and products through e-commerce, and redirecting their online spending into booking travel and signing up for education courses. In the past 12 months, online spending on Australian education and travel businesses doubled and quadrupled respectively as demand for services post-COVID ramped up.
5. International demand for Aussie brands is dropping
There’s an alarm bell for some businesses that rely on international purchases, with the Index highlighting overseas sales dropped by 6% since last year, but domestic online consumption has made up for it. Local businesses are increasingly becoming Australians’ first choice for online shopping.
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