Stripe, a platform for company financial infrastructure, issued a report on several years of proprietary data showing that Australian businesses are venturing into new digital export flows, laying the groundwork for future expansion despite lingering economic uncertainties.
Based on Stripe transaction data from 2019–2022, the research illustrates how world consumption and market fit determine digital export flows instead of supply-chain paths. Stripe and other services like it are laying the groundwork for growth even as the global economy contracts.
Some essential findings from this report include the following.
Digital Exports Change Global Trade From Australia
Since the advent of the internet, new types of businesses have emerged, and products and services may now be traded instantly around the globe. Australian firms using Stripe to make international sales are finding new digital export markets as e-commerce expands.
According to Stripe data, the United States is now Australia's most promising market for expansion. New Zealand, and the UK, were the two other top digital export markets for Australian companies using Stripe in 2021.
With a 69% increase in companies selling to the nation between 2020 and 2021, New Zealand is the market where Australian companies selling on Stripe are experiencing the biggest growth.
Australian Businesses that Sell Overseas are Becoming More Diverse
Platforms are lowering the hurdles for established, non-digital-native Australian businesses to profit from new overseas buyers and consumers, even if many new digital-native enterprises are built to be global from the ground up.
Stripe saw a 20% increase in the number of Australian firms sold abroad in 2021, with the growth coming from large corporations and small businesses that were not digital natives.
Multiple Sectors Are Experiencing Expansion From Digital Exports
Throughout 2020 and 2021, Stripe saw a consistent increase in the percentage of businesses using the platform to sell abroad. The tendency has been highly profitable for several sectors. The five largest Australian industries on Stripe in 2021 for foreign online sales were software, goods, apparel and accessories, personal services, and B2B services.
One Australian company that has expanded overseas is Bikes Online. Stripe Atlas was utilized by the online bike business that sold directly to consumers to expeditiously open bank accounts and incorporate them in the United States. Since launching in the United States, the company has seen a tenfold rise in revenue, and it now generates more revenue in the United States than in Australia.
Conclusion
This study draws on financial information from Stripe users in Australia, Japan, Singapore, and Malaysia who provide goods and services to clients worldwide. We have employed this information to infer developments in the digital economy, such as the impact of digital exports on global trade patterns.
Since Stripe's statistics are focused on distinct criteria than national trade data, it should be viewed in this context as illustrative rather than comparable. This report's findings are limited to the four countries where Stripe is most widely used and do not reflect the entire Asia-Pacific region or their economies.
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