More Aussies shop with small businesses than you think
But could this trend change with the imminent launch of Amazon in the Australian market?
Did you know that on average 42 cents of every dollar spent with a small business flows back into the immediate community?
Research from the latest American Express consumer behaviour report calls this trend the "Boomerang Dollar", and the findings detail the significance of choosing to shop with small business.
The research report titled, The Economy of Shopping Small shows that 25% of the average Australian's everyday spend passed through small business. And the "Boomerang Dollar" effect of this spend sees almost $38 billion reinvested into the local economy.
While the benefit of the Boomerang Dollar is felt in local communities around Australia, small businesses are still being rattled by larger competitors.
60% of small business owners surveyed in the research report say their customers are people from the local area, but 45% have noticed the same customer base waning in the last 12 months. Only 29% of consumers have increased their shopping frequency with small businesses in the last 12 months, down from 37% in the previous year.
This puts small businesses in the firing line of the upcoming disruption tsunami from Amazon's upcoming Australian launch.
Recent research has shown that around 70% of Australians are already planning their Amazon purchases - and this is before Amazon has even confirmed an official launch date. 47% of Aussies are planning to buy books and 35% say they'll be buying electronics from Amazon. So retailers in these categories can expect a battle for customers when Amazon finally launches into market.
American Express reports that despite the disruption looming on the horizon, 43% of small businesses actually increased their turnover last year, while another 41% neither gained nor lost ground.
Aussies are also keen to continue supporting small businesses, in another positive sign for the steady local economy. American Express reports that 52% of Australians surveyed would prefer to pay more for their goods or services if it supports the local community.
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