How Aussie businesses are fighting back against rising costs

From rising overheads to wage increases and changing discretionary spend,  cost pressures have been a constant for Australian businesses. But while these challenges aren’t going away any time soon, the smartest operators aren’t standing still, writes Shaun Broughton, Managing Director, APAC and Japan at Shopify. They’re adapting, not just to survive, but to strengthen their positions long term.

According to a recent Shopify survey, 38 per cent of Australian retail business leaders are taking more risks to outpace those playing it safe. Rather than scaling back, they’re tightening operations, sharpening pricing strategies and finding new ways to generate revenue.

This marks a shift in mindset. If the past few years were about weathering the storm, 2025 is shaping up to be about regaining control. Here’s how forward-thinking businesses are doing just that.

Price with precision

Once viewed as a last resort, price increases are now part of a more nuanced playbook. For many businesses, they’ve become a deliberate lever — one that, if pulled carefully, can protect margins without eroding customer loyalty. In fact, 39 per cent of Australian retail businesses have already increased prices on at least one product or service in response to economic pressures, according to Shopify research.

But rather than applying blanket price hikes, today’s most effective businesses are using real-time sales data to guide their decisions. They’re identifying specific opportunities: products that are popular, deliver healthy margins and see an influx of seasonal demand.  These items offer more flexibility to adjust pricing without creating friction.

But to do this effectively, it’s crucial to think about how you are communicating price changes, and position them within a broader value story. Make it clear what customers are getting in return, whether that’s improved features, faster delivery, enhanced service, or added convenience. Consider introducing tiered pricing to offer flexibility, or rewarding loyal customers with early access, personalised offers, or exclusive perks. The more clearly the value is communicated, the more likely customers are to stay engaged and supportive.

Think smarter not cheaper

In 2025, forward-thinking businesses are shifting their focus from reactive cuts to intentional, efficiency-led decisions, all aimed at doing more with less.

That might look like investing in automation to reduce repetitive tasks. Or using analytics to track ROI more closely, so you’re doubling down on what works and ditching what doesn’t. Or renegotiating supplier contracts, and combining tools – 28 per cent have changed shipping and logistics providers or strategies in response to cost pressures. It’s not about being cheap—it’s about being smart.

Ultimately, there’s a broader cultural shift underway. The ‘grow fast, worry later’ mindset of recent years has given way to a desire for sustainable profitability. That doesn’t mean growth is off the table. It just means chasing quality over quantity, retention over reach, and long-term value over short-term spikes.

Launch new offers to unlock growth

When margins tighten, it’s tempting to cut back to reduce strain. But resilient businesses are going the other way with 39 per cent of retail businesses having launched new products or services in response to economic pressures.

And this doesn’t have to mean launching something totally new. Consider your existing product range and customer base to identify what is already working. Then, look for adjacent opportunities—services that enhance the core product, accessories that complete the experience, or bundles that offer better value.

More importantly, the key is not to guess. The best ideas often come from customers themselves. Businesses are listening more closely, whether that’s digging into feedback forms, tracking online behaviour, or even just having honest conversations. What questions are people asking? What’s missing from their current experience? These insights can uncover quick wins and guide product development with purpose. And by solving a slightly different problem or removing a common friction point, you’re making your business harder to replace.

Growth beyond borders

But many businesses aren’t just doing more at home—they’re also driving growth by reaching new customers elsewhere. Australian retail business leaders (99%) say non-local markets are critical to their future success, with 76% calling them very important. It’s no surprise, then, that more than a quarter (26%) have already expanded into new markets in response to economic pressures.

But while global expansion typically comes with increased costs and complexities, having the right tools can make scaling much easier. By investing in a unified commerce infrastructure, for example, businesses can manage inventory, fulfilment, payments, and customer experience from a single platform, making it far easier to test demand and grow with confidence.

Tools like multicurrency checkouts, geo-targeted storefronts, integrated shipping options, and real-time data all help streamline cross-border selling. Instead of creating complexity, modern infrastructure consolidates it, giving retailers the flexibility to enter new markets at speed, while still delivering a consistent, high-quality customer experience.

Progress over perfection

Ultimately,  waiting for perfect conditions is a losing strategy. That’s why the most resilient businesses are choosing action over hesitation. They’re refining rather than reinventing, and embracing experimentation as a way to unlock growth and opportunity. In a climate where many competitors are playing it safe, the brands willing to adapt and evolve are the ones poised to pull ahead.

Because resilience isn’t about retreat. It’s about progress. And in 2025, that mindset could be the most powerful asset a business can have.

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