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E-commerce in New Zealand

E-commerce

Internet access
As of 2018, there were nearly 4.3 million internet users in New Zealand, making the internet penetration rate in the country 89%. In 2017, the monthly average of residential broadband connections in New Zealand used around 170 gigabytes, more than double the rate of 2016. The New Zealand Government is funding two broadband expansion initiatives, with the aim of providing fibre to the homes of 80% of the population and bringing broadband to 97.8% of the population by 2019. New Zealand is currently going through a shift from fixed to mobile internet connection. According to Stats NZ, there were 3.8 million mobile phones with active internet connections in June 2017 in the country, which represented an increase of 11% compared to the same period in 2016. Meanwhile, the number of home broadband connections had decreased 3% in the same period. New Zealand's fixed-broadband is ranked 17th fastest in the world, while their mobile internet connection is ranked 14th fastest.
E-commerce market
New Zealanders are increasingly connected, a trend which can also be observed when it comes to shopping, with two-thirds of Kiwis shopping online in 2017. That rate has been growing and it is expected to hit 83% by 2026. In 2017, e-commerce sales reached US$ 4.2 billion, up from US$ 3.9 billion a year earlier, which indicates an increase of 10%. According to BNZ, New Zealand's annual retail spend is US$ 49 billion, online shopping making up 7.6% of total retail sales. One of the reasons that e-commerce is growing is due to the fact that online shoppers believe it saves them time and that it is more convenient. Most online shoppers (57%) live in metropolitan areas and are aged between 30 and 49 (36%). The way people are using the internet to purchase items is changing, with three-in-five New Zealanders using their smartphones while in-store to research an item before buying. On the other hand, four-in-five people look at items online but ultimately buy in-store. Even though computers and laptops are the most popular devices when it comes to shopping online, smartphones and tablets are increasingly popular when buying over the internet, with 21% of online shoppers completing purchases on a mobile device in 2017. Credit card is the preferred method of payment in the country, with 75% of all online purchases being made using one.The most popular items purchased online are travel tickets and accommodations, clothing and event tickets - especially show and movie tickets. Among the top ten most popular products, many of them include non-physical items such as the previously mentioned tickets and bookings, but also music, movies, e-game downloads, computer software and food delivery. Some of the most popular e-commerce websites in the country include thewarehouse.co.nz, trademe.co.nz, priceme.co.nz, grouponnz.co.nz, as well as global giants like Amazon, Alibaba, and Ebay.

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Latest Update: November 2022

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