Retail sole traders earned an average of $43,700 in FY 25/26 🙌
Retail has always been a popular way to build a business, whether that’s at the Roman forum thousands of years ago, or a farmer’s market last weekend.
Now, thanks to the internet, it’s never been more accessible. The rise of online marketplaces has made it simple to run a retail business from start to finish, including marketing, finding buyers, shipping your wares, and following up.
That said, the average earnings in the retail space are lower because it’s a difficult industry in which to establish yourself. Many retail businesses fail in the first two years, but those that succeed can go on to have significant growth and earnings potential.
How retail sole traders work
Starting as a sole trader is the fastest way to get a product to market. Not only is there no need for a full-scale setup, but you can test ideas quickly and efficiently, or even leverage an existing space or studio to increase your reach. As a sole trader, you can generally choose your own hours, and operate in a way that works for you – from home, at a set location, or even going from local market to local market each weekend.
There’s also no single path or expected progression – a sole trader retail business is whatever the owner makes of it. They can scale up or down, stay solo, or hire staff. And unlike many other types of work, a retail business can be sold, meaning what they build today could become a valuable asset in the future.
Earnings by industry
Hair, Beauty, and Tattoo
Sole traders in the hair and beauty industry have the option to work on their own, or join a salon, or even rent a space in an existing establishment (and the rent could be tax deductible!). They can still build a loyal customer base and build their business, without all the admin that comes with running a full-on studio.
General Retail
These sole traders span the spectrum from traditional brick-and-mortar stores and boutique Etsy sellers all the way to well-established e-commerce stores. They can do much of what incorporated companies can do – like hiring employees, or claiming tax deductions – with less of the admin.
Hospitality and Domestic Services
One of the benefits of operating as a sole trader is being able to work flexibly. For Personal Chefs, for example, it’s easier to build a full roster of clients as a sole trader than when you’re locked in as an employee. Similarly, Personal Stylists can offer a single service to multiple clients, or multiple services to a smaller client base – it’s up to them how they slice it!
