It’s been a challenging few years for business owners. But Afterpay has helped small businesses weather the storm, according to a new report.
Between shopping restrictions and shipping delays, border closures and stock shortages, few things came easily for Australian merchants in 2021.
However, a new report has highlighted the important role that Afterpay played in supporting small businesses, and the myriad benefits of partnering with Afterpay.
Afterpay boosts revenue
In 2021, Afterpay was a key revenue driver for businesses according to Small Business, Big Opportunity.
In fact, the average Australian SMB merchant sees a 13% uplift in revenue by partnering with Afterpay, which equates to around $32,000 in new revenue annually. The report, based on figures from Accenture in 2021, showed that partnering with Afterpay delivers a 7.7 x return on investment.
The founder of Empire Skate and Street, Matt Wells, says Afterpay helped the New Zealand retailer ride out the pandemic. When restrictions saw shops close, he enabled Afterpay on the business’ e-commerce store, and soon saw a 15 per cent lift in average order value, with Afterpay customers spending 25 per cent more than customers using other payment methods.
“Afterpay has helped retain customers, with an increase in repeat customers using the payment method.”
Empire Skate founder Matt Wells
Peggy & Twig founder Emily Burton also saw a boost to her jewellery businesses’ bottom line when she signed up to Afterpay, with customers more likely to purchase more expensive pieces when they used Afterpay.
Burton believes Afterpay is “expected” by online consumers and that the platform has helped attract new customers. In addition, she adds “you don’t pay fees until you start seeing those sales. It’s a no-brainer. And setting it all up was really easy.”
Peggy & Twig founder Emily Burton
Afterpay’s sales drive sales
Afterpay Day has become a well-known sales event in Australia, but Afterpay also hosts Support Small weekends, which reach millions of shoppers and help amplify small businesses.
In February 2021, Support Small weekend increased total transactions by seven per cent, with top-performing merchants achieving a 30 per cent lift in sales.
Afterpay creates cost-efficiencies
As well as helping boost revenue, Afterpay also produces cost-savings for small businesses. For example, return rates are lower among customers who use Afterpay (2-6 per cent of purchases, compared to 9-20 per cent).
Afterpay also reduces fraud risk, with dedicated in-house security and risk teams and 100 per cent fraud coverage.
Afterpay offers insights
Running a business can be a steep learning curve, which is why Afterpay produces reports and surveys helping small business owners stay up to date with retail and consumer trends.
Afterpay also delivers tips, articles, interviews and advice via Afterpay Access, a one-stop-shop for small business owners to discover everything they need to grow their business. From social media marketing to sales tips, sustainability advice and customer retention strategies, Afterpay Access offers insider tips into how small businesses can grow, their way.
Afterpay helps merchants do good business
At a time when more Australians than ever are looking for information about brands’ sustainability and ethical credentials, Afterpay has introduced a raft of initiatives aimed at helping businesses meet customer expectations.
This includes the opportunity for small businesses to be rated by ethical fashion platform Good On You, as well as the launch of the Edit Collection, which amplifies small, sustainable fashion brands.
For more information about Small Business, Big Opportunity – or to find out more about how Afterpay support small business – read the full report.
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