Ecommerce: Thinking of Selling in New Zealand?
Kiwi Online Shopping Habits You Should Know
China still dominates sales in the ecommerce world, including among online purchases in New Zealand. According to a report by the New Zealand Post, Kiwi consumers purchased 50% of items from China, 46% from Australia, 42% from the US and 35% from the UK in the last year1. Despite this, there is good support for domestic merchants: 65% of shoppers said they would prefer to shop from a New Zealand site, given the choice. Top reasons cited in the report are trust and a desire to support local business.
Similar to its neighbor Australia, popular marketplaces include Alibaba, eBay, Wish and Amazon. Regardless, of where they shop, Kiwis consider the most important criteria when choosing an online store are:
- Cheapest price (77%)
- Range of goods (72%)
- Delivery charges (57%)
- Great customer service (26%)
- Lots of delivery options (18%)
Although a large proportion of purchases by Kiwis are still overseas but there are signs that is changing specifically in particularly in Clothing & Footwear, which is the fastest growing domestic sector with 45% growth. Currently more than half of all online spend (53%) in this sector stays in New Zealand.
The Food, Groceries & Liquor sector has clearly benefited from the changing lifestyle of the Kiwis, complete meal kits like My Food Bag and grocery deliveries will continue to grow, with 23% domestic growth a piece. The Health & Beauty sector continues trail behind with only 9% of online sales and growth of only 12% over 2017.
Where are Kiwi Buyers located?
It is no surprise that consumers in the big metros continue to dominate purchases with Auckland, Wellington and Christchurch regions. According to the New Zealand Post, they contribute over 60% of all online purchases. Also noted is that Auckland leads the nation’s online share of spend followed with the Waikato region grew by 20%. A survey by the New Zealand Post, this could be due to the continued rise in population and prosperity in the golden triangle between Auckland, Hamilton and Tauranga. Other growth areas include the South Island: Marlborough (19%), Otago (14%) and Southland (14%).
In conclusion, ecommerce sales in New Zealand is still very competitive. Kiwi shoppers are highly motivated by price and range. But to end on a good note, Kiwis are increasingly happy with the level of service they receive from New Zealand online retailers with 88% reporting satisfaction compared to 66% satisfaction from overseas sites. And that can be the tipping point for NZ online sellers.