New Zealand, e-commerce and logistics
New Zealand is a large and mature consumer market with a well established and large e-commerce sector.
You may be wondering if there is market share to be gained, and if so, whether the distance makes it all worthwhile? Read on to find out what our experts think...
Why New Zealand?
We all know that New Zealand has a low population density, but if that puts you off trading there you may want to think again.
In fact, the population is slightly more than 5 million people, and yet, New Zealand is ranked as the 48th largest e-commerce market in the world 1.
It also boasts 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
Due to COVID-19, higher mobile penetration rates and an increasingly positive attitude towards shopping online, e-commerce growth has boosted in recent years. Today, approximately 70% of New Zealand’s population – young and old – buy online.
The top e-commerce sites in New Zealand are Trade Me, The Warehouse and GrabOne. It’s worth checking out these popular sites to see which ones might best suit your product in terms of traffic volume, competition and the type of e-commerce buyers that they attract.
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. Good news for any e-commerce companies trading, or thinking of trading, in these sectors.
Opportunities
With the rise in popularity of online stores, mobile shopping has become more popular among New Zealand’s online shoppers. More than 67% of Gen-Z and 44% of Millennial's made online shopping decisions based on content seen on social media platforms like Instagram in 2022.4
Looking ahead to 2024, e-commerce revenue in the food and groceries and beauty and healthcare segments look poised for growth.
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 | eParcel Premium 4 to 7 working days (excluding remote areas) eParcel Expedited 3 to 6 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).
The rules apply to overseas businesses selling low-value goods directly to New Zealand consumers, as well as online marketplaces and re-deliverers.
All consignments valued NZ$1000 or less can be cleared on an Inward Cargo Report (ICR), a Simplified Import Declaration (SID) or a standard Import Declaration. Consignments or goods valued over NZ$1000 must be cleared on a standard Import Declaration, and the Import Entry Transaction Fee (IETF) and MPI’s BSEL will be charged.
There is no change to the current processing of consignments over NZ$1000 – the standard GST and duty calculation will be applied. If GST on the value of the goods has already been collected at the point of sale by the supplier GST will still be payable on any duty at the border.
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. This involves assigning relevant HS codes to all your products and then using those to calculate the taxes and duties that need to be applied to a specific product. This can be an onerous task, 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 cost-effective 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
4 eCommerce - Worldwide | Statista Market Forecast