New Zealand, e-commerce and logistics
New Zealand has a well established e-commerce sector.
You may be wondering if there is market share to be gained, and if so, what is the best way to deliver there form the UK and how much will it cost? Read on to find out what our experts think about delivering to places like Auckland, Christchurch, Wellington and more.
Why New Zealand?
New Zealand has a low density population of just 5 million people, and yet, it is ranked as the 48th largest e-commerce market in the world 1. New Zealand also has one of the highest per capita incomes in the world of $48,249 2, and an average annual per capita e-commerce spend of $1,876, which is slightly below the European average of $2,594 3
- 11.8%
- E-commerce Compound Annual Growth Rate (CAGR) predicted by 2027
- Visa
- The most offered payment option online in NZ
- Electronics
- The largest e-commerce sector
Stats taken from: https://blog.commissionfactory.com/ecommerce-marketing/ecommerce-statistics-in-new-zealand, https://ecommercedb.com/markets/nz/all
The e-commerce landscape
E-commerce growth has boosted in recent years. Today, approximately 70% of New Zealand’s population – young and old – buy online. The top products and categories for New Zealand e-commerce buyers include electronics, baby and children’s supplies, entertainment and education, clothing and appliances and furniture.
Opportunities
For B2C online purchases, mobile e-commerce now makes up a significant proportion of the New Zealand e-commerce market. Merchants should bear this in mind when setting up their online stores and product listings. Mobile optimisation and a good mobile buying experience should be key to your broader e-commerce strategy.
Online shopping trends in New Zealand
Total spending by online shoppers in New Zealand from 2021 to 2022, by sector
Source: https://blog.commissionfactory.com/ecommerce-marketing/ecommerce-statistics-in-new-zealand
Logistics
New Zealand has a sophisticated and efficient e-commerce industry and to compete effectively you will want to offer cost effective and timely shipping options. The easiest way to provide a reliable and secure shipping service in a new market is to partner with a trusted logistics company.
The essentials
| Transit Times | 4 to 7 working days (excluding remote areas) |
| Final mile carrier | New Zealand Post |
| Maximum Dimensions | (W+H) * 2 < 140 cm Length < 105 cm |
| Maximum Weight | 20kg |
| Maximum Container Value | NZD 2,000 |
| Low-Value Limit | NZD 1,000 (depending on type of product) |
| GST 0% | 15% of the item value (including duty) |
| Duty | 10% of the item value; applicable on orders over NZD 1,000 |
| DDP Available | Yes |
| DDP Fee | As agreed |
| Clearance Fee | As agreed |
Bear in mind
Any overseas business selling goods to a consumer in New Zealand valued at NZ$1,000 or less (not including transport and insurance), may need to register for, collect and return, Goods Service Tax (GST).
For more information visit: https://www.customs.govt.nz/about-us/news/important-notices/new-gst-rules-for-low-value-imported-goods/
Good to know
To ensure a seamless buying experience and reliable delivery times for New Zealand buyers, it is a good idea to consider calculating and displaying all local taxes and duties up front. For help, get in touch with SAMOS.
What our experts say:
“Selling in New Zealand is a great option for growth-minded online merchants. It’s a large and active consumer market that is increasingly profitable for some businesses. All you need is an effective and efficient shipping strategy to join them.”
Ben Bagnulo, CEO, SAMOS.
To find out more about how SAMOS can help you achieve fast and cheap deliveries to New Zealand get in touch today
1 eCommerce Market New Zealand - Data, Trends, Top Stores | ECDB.com (https://ecommercedb.com)
2 https://blog.commissionfactory.com/ecommerce-marketing/ecommerce-statistics-in-new-zealand