Fiverr International Ltd, the company that is changing how the world works together, has released its latest data revealing how Aussie businesses surveyed are gearing up to tackle an unpredictable holiday shopping season. Fiverr conducted a nationwide survey of 504 consumers and 500 small-to-medium business leaders across Australia in partnership with Censuswide. The findings highlight significant shifts in marketing strategies among Australian businesses, driven by evolving privacy laws, economic pressures, and changing consumer priorities.
Privacy Laws Prompt a Shift Away from Targeted Advertising
With impending privacy regulations set to align with Europe’s stringent GDPR laws, 24.8% of medium-sized businesses surveyed are scaling back on targeted advertising. This strategic shift prioritises compliance and long-term sustainability over traditional data-driven marketing methods.
“The upcoming privacy regulations are really pushing businesses, especially mid-sized ones, to rethink how they approach advertising,” said Gali Arnon, Chief Business Officer at Fiverr. “With the rising costs and risks tied to data-driven advertising, along with the new challenges around consent management, companies are being driven to shift toward more sustainable and privacy-compliant marketing strategies. As the definition of personal information broadens and consent rules tighten, brands will have to find new ways to connect with their audiences.”
Prioritising Customer Experience and Operational Efficiency
Rather than simply cutting costs, businesses are reallocating their budgets toward enhancing customer experience and operational efficiency. Notably, 41.8% of Australian companies surveyed are investing in AI across the customer journey, while 40.8% are optimising logistics and offering faster shipping options. Furthermore, 39.8% are turning to content creation and influencer partnerships to build direct, owned channels, reducing reliance on traditional advertising methods.
AI adoption is accelerating, with 68.6% of respondents integrating AI into their operations. This trend is especially pronounced in e-commerce, where 84.2% of businesses now use AI, particularly for chatbots and inventory management, to better meet consumer demands.
Recruitment Trends for the Holiday Season
The research also highlights strategic workforce planning among SMEs for the upcoming holiday season. With 42.8% of SME owners surveyed hiring full-time or part-time staff and 40.2% bringing on seasonal employees, the retail sector is preparing to meet the festive rush. Additionally, 40% of businesses are leveraging freelance talent for added flexibility, and 6.8% are turning to AI tools as an alternative to expanding their teams.
Surviving the ‘Amazon Effect’
Small and medium-sized businesses are grappling with challenges as they compete with larger eCommerce brands like Shein, Amazon and Temu. These giants have the financial resources to weather economic downturns, making it difficult for SMBs to keep pace, especially with rising labour costs, inflation, and shrinking sales. Competition from these larger e-commerce brands is a major concern for 44.60% of SMBs surveyed, highlighting the immense pressure they face from well-resourced competitors.
“For SMBs, the challenge is not just how to compete, but how to outmanoeuvre competitors with far deeper pockets. It’s a critical time for businesses to invest strategically, ensuring every dollar spent contributes to long-term growth and customer loyalty,” added Ms. Arnon.
Affordability Takes Precedence Over Sustainability
Another key finding from the research is the shift in consumer priorities, with affordability now outweighing sustainability in purchase decisions. As economic pressures mount, 50.79% of respondents prioritise good deals, and 41% value free shipping, particularly among women. While these practical concerns dominate, a notable 7.14% still consider sustainable products, and 7.74% prioritise ethical brands, indicating that despite the focus on affordability, a segment of consumers continues to value sustainability and ethics in their choices.
Methodology
Global Consumer Research: The research was conducted by Censuswide, among a sample of 2,539 nationally representative consumers across the USA, UK, Germany, France, and Australia. The data was collected between 26.07.2024 – 30.07.2024. 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.
Global Business Research: The research was conducted by Censuswide, among a sample of 2,508 SME owners/leaders (aged 18+) in Retail or E-commerce across the USA, UK, France, Germany and Australia (excluding sole traders). The data was collected between 27.07.2024 – 05.08.2024. 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.