THE OPPORTUNITY ECONOMYAustralia 2016

FOREWORDSmall to medium sized businesses are the lifeblood of Australia. They play a significant role in the Australian economy, accounting for almost half of all employment in the private non-financial sector and over a third of production. And while the opportunities for small to medium businesses have never been so plentiful, navigating the hybrid world of offline and online commerce in 2016 also presents its fair share of challenges.

At eBay, we have supported small to medium businesses from the outset – providing a powerful and ubiquitous platform to support those making their first foray into the new world of online retail or expanding their existing operations. When eBay first launched, it represented the first separation of physical and online goods, sales and purchases. No longer were sellers and transactions bound by their geography – an extraordinary leap at the time, but something we take for granted now.

Fast forward to 2016 and eBay is a remarkable and truly unique community of buyers and sellers – a hive of connected commerce operating in a burgeoning age of access. Countless transactions are made across 28,000 small to medium sized Australian businesses who operate on eBay every single day.

For small sellers and fledgling businesses, the eBay network presents a world of opportunity both domestically and overseas. More than 162 million people shop on eBay worldwide representing brand new customers across both established and emerging markets. And we have built our technology and platform to support this – to connect and empower; to lift people up and allow entrepreneurship.

And this is why we know small sellers. They are the fuel that power eBay and the wider economy. They grow and succeed with us. And with eBay, it’s never been a better time to take your business to the next level.

This buoyant outlook is reflected in the Opportunity Economy study which we commissioned to gauge optimism levels amongst small to medium e-businesses and their economic activity across the country. The snapshot of over 700 small and medium businesses has found that optimism and overall sales forecasts are high for the year ahead. Thanks to technology, businesses do not need to be located in Australia’s metro regions, and entrepreneurs are not tied to any particular geography. The research results show a strong community of small and medium businesses using technology to break down traditional barriers to trade and expand into new global markets.

Over the next few pages, we profile a handful of businesses that connect with their customers via eBay every single day. Through their stories, it’s easy to see that we’re in an exciting time of growth and opportunity. Every day, more and more small and medium businesses are joining a marketplace to leverage such opportunities

It’s an exciting time to watch our sellers grow and flourish

with eBay.

Jooman ParkManaging Director, eBay Australia and New Zealand

POWERED BY SMeBS

EBAY IS CREATING A LEVEL PLAYING FIELD FOR SMALL TO MEDIUM SIZED BUSINESSES ACROSS AUSTRALIA – IN BOTH METRO AND REGIONAL AREAS.

The Opportunity Economy study reveals two thirds (64 per cent) of

Small and Medium e-Businesses (SMeBS) are optimistic about their

growth prospects over the next 12 months. South Australia tops the list

of optimistic states, followed by Victoria, New South Wales, Queensland

and Western Australia. Findings show that regional SMeBS are helping 

to drive the Australian export economy with 19 per cent reaching

40 per cent or more sales via exporting vs. just 2  per cent for businesses

in metro areas.

eBay’s platform is reducing barriers for SMeBS by helping them to:

Export goods

Utilise promotional

tools

Develop online marketing strategies

Connect to a large audience

Hooked Online

Disrupt Sports

JACOBS WELL, QLD

BONDI, NSW

Ivory & DeeneSUMMERHILL, TAS

Delta’s Dazzling Costumes

SOUTHPORT, QLD

Luumo DesignSYDNEY, NSW

Boots4all

Vardhman Threads

Kitchen Warehouse

MELBOURNE, VIC

EUROA, VIC

PERTH, WA

75% of SMeBS in Victoria are expecting to see an increase in sales over the next 12 months

23% of SMeBS in WA achieved 40% or more of their annual sales through overseas exports in the last year

32% of ‘Mumpreneurs’ are based in Queensland

South Australia is the most optimistic state: 60% of SMeBS here have a positive outlook for their business over the next year

PAUL NIEUWENHUYS

JACOBS WELL, QUEENSLAND

Hooked Online

Paul was told it would be too hard to run a successful fishing supplies

business on eBay. He was undeterred and today Hooked Online is one of

the most popular online shopping destinations for quality brand name

fishing tackle in the country. It all started with a packet of mixed sinkers

which Paul placed for sale on eBay in 2010 for $9 with $7 postage. In

the first 3 years Hooked Online successfully grew 180%, and since then

the business has been growing steadily at 28.5% YoY. Hooked Online

now has a bricks and mortar store, large warehouse and a stand alone

online platform.

“ eBay being a trusted platform with a captive audience makes it easy to start out with minimal costs or experience. Our eBay sales were so instant that we had the opportunity to reinvest capital straight away and that allowed for a new warehouse to be built after just 2 years.”

67% OF SMeBS AGREE THAT MARKETPLACES LIKE EBAY ARE HELPING TO LEVEL THE PLAYING FIELD WHEN IT COMES TO BUILDING THEIR ONLINE BUSINESSES

67%

DAWN MENKE

SOUTHPORT, QUEENSLAND Delta’s Dazzling Costumes

Dawn began selling second hand items and kids products following

the birth of her first child. Dawn recognised a gap in the market for

well-priced baby clothing, toys and nursery products and began listing

these items on eBay. Dawn made the decision to develop her business

rather than return to full time to work to manage a flexible work/life

balance, and after introducing kids costumes to compliment her baby

products, she decided to try adult costumes. In 2008, Dawn started

making trips to the USA to the Halloween and Party Expo in Houston

to purchase stock. The online visibility delivered on eBay allowed her to

grow this business quickly. Today, Delta’s Dazzling Costumes has evolved

from a one-person enterprise to employing 10 staff members who work

across a bricks and mortar store, online platform and eBay store. In busy

periods and especially around Halloween, Dawn employs 20 staff to assist

with the business.

“ I gave up work 12 years ago once I realised how easy it was to earn an income through eBay. There is no other shopping site for sellers in Australia that has the customer flow that eBay does making it the easiest, cost efficient way of selling online.”

73% OF ‘MUMPRENEURS’ SAY A HEALTHY WORK/LIFE BALANCE IS KEY TO DRIVING THEIR GROWTH OVER THE NEXT 12 MONTHS

73%

PETER MACAULAY

PERTH, WESTERN AUSTRALIA

Kitchen Warehouse

Peter launched Kitchen Warehouse in 2007 – starting from scratch

and running all aspects of the business from packing boxes to running

the account and delivery. Peter now employs 200 staff and in the last

18 months has merged two separate businesses – the bricks and mortar

Kitchen Warehouse and the online platform. Peter started selling on eBay

with a desire to be in the same space and in front of the same customers

as his competitors. Since the Kitchen Warehouse eBay store opened, it has

grown market share, visibility and revenue. So much so that eBay sales

are growing at 40% YoY with overall business sales increasing 15% YoY.

“ Over the last 5 years eBay has gone from being a channel providing a small amount of incremental revenue for our business, to now being a major partner for us. Not just for sales revenue, but also as a major part of our marketing mix.”

69% OF SMeBS USING ONLINE MARKETPLACES LIKE EBAY AGREE THEY HAVE THE RESOURCES THEY NEED TO BUILD STRONG CUSTOMER LOYALTY

69%

Anthony and his father Tony have been in the industry since the early

90s, establishing a successful business selling fabric and haberdashery

products. In 2006, Tony relaunched the business as Vardhman Threads.

At first he found that the methods of scouting out clients had changed

and he struggled to make the new business profitable. But after his wife

Di stepped in and created an eBay store, the business took off. As a result

of the new strategy, Vardhman Threads now employs five people and

plans to commence exporting in the New Year. “ eBay turned everything around for our business - allowing us to pick up a new audience, trial marketing tools and take advantage of the free listing tool on the platform.”

ANTHONY CLOTA & DI LESLIGHT

EUROA, VICTORIA

Vardhman Threads

33% OF GREYPRENEURS ARE LOCATED IN REGIONAL AUSTRALIA – WELL ABOVE THE NATIONAL AVERAGE

33%

DAVID O’CONNOR

MELBOURNE, VICTORIA

Boots4all

David is the proud owner of ‘All Things Australian’ and has over 20 years’

experience selling quality footwear. David found that growth in the

Australian market had become stagnant and felt that the potential

for further local growth was minimal. In 2012, David launched the

Boots4all store on eBay with a desire to reach new markets. The

platform allowed David to test the international waters without a huge

investment. Exporting is now a major revenue driver for the business

and Boots4all has customers in over 60 countries including China and

other emerging markets.

“ I love the thought that our small business in Melbourne can be selling boots and shoes to all continents across the world every day.”

88% OF SMeBS ON EBAY HAVE FOUND CUSTOMERS OVERSEAS

88%

GARY ELPHICK

BONDI, NEW SOUTH WALES

Disrupt Sports

Disrupt is an online business that allows users to customise and

personalise their action sports equipment. Founded by Gary Elphick,

the concept for Disrupt was born from his time as a surf and snowboard

instructor and has turned from a small operation selling surfboards,

to a worldwide company with offices in both the UK and USA. Being

on eBay gave Disrupt an automatic audience and was a key factor in

extending their international reach beyond traditional trade routes, as

Gary and his team could make their product visible to customers on every

continent. Exports now account for over 30% of Disrupt’s sales, with

consumer engagement across the globe including Mexico, Italy Portugal,

Israel and New Zealand.

“ Disrupt owes a lot of its international expansion and revenue growth to eBay. Having somewhere with thousands of customers allowed us a fast, efficient and agile way to test and then grow in the market.”

67% OF AUSTRALIAN SMeBS AGREE THAT EARLY ADOPTION OF NEW TECHNOLOGY IS CRITICAL TO STAYING RELEVANT AND COMPETITIVE

67%

With their roots firmly in Scandinavian design, Luumo Design source

and sell unique and curated homewares, furniture and lifestyle products

from around the globe. Luumo is the creation of husband and wife team,

Giorgio - an Interior Designer and Claire - an Interior Stylist, and mother

of two. Claire and Giorgio set up the business in 2014 with a bricks

and mortar store in Waverely, an e-commerce site and an eBay store.

Partnering with a marketplace enabled Luumo to reach an audience that

they would not otherwise have been able to connect with. Luumo Design

has doubled its turnover in the past year.

“ It’s great that my eBay business continues to grow as it gives me a great work life balance so I can spend more time with my children.”

CLAIRE AND GIORGIO

SYDNEY, NEW SOUTH WALES

Luumo Design

‘MUMPRENEURS’ ARE AMONGST THE MOST OPTIMISTIC OUT THERE – 86% HAVE A POSITIVE OUTLOOK FOR THEIR BUSINESS OVER THE NEXT FIVE YEARS

86%

RUBY & PETER HODGMAN

SUMMERHILL, TASMANIA

Ivory & Deene

Ivory & Deene is an online luxury homewares retailer founded by Ruby

and Peter Hodgman. What started as a side project for the pair who sold

second hand items from around their home for additional income, has

turned into a full time operation. Ruby and Peter now focus on Ivory

& Deene full-time, sourcing and branding their own range of products.

Exports now account for over 20 per cent of Ivory and Deene’s sales, with

the duo pleasing customers in over 20 countries worldwide in locations as

far as the United States and Europe.

74% OF SMeBS AGED 55 AND ABOVE ARE EXPORTING OUTSIDE OF AUSTRALIA

“ Tasmania has a small population of around 515,000 making it difficult to reach a large domestic audience let alone one that is worldwide! Through the internet and eBay we have access to a global audience – helping drive our business. Owning an online business affords us the flexible lifestyle we’ve always wanted.”

74%