Throughout 2020 and 2021, New Zealand’s e-commerce landscape rapidly evolved, with the market experiencing
on in-store shopping. The pandemic reshaped the way many businesses engage with customers, as well as the purchasing behaviors of shoppers. Nonetheless,
led several consumers nationwide to cut back on online spending in 2022. Although e-commerce growth leveled out that year, online retail expenditure was still significantly higher than pre-pandemic, with e-commerce accounting for 12 percent of
. To connect with more potential customers, retailers must continue to adapt and refine their online platforms. With many
, investment in digital solutions, such as mobile apps and integrated payment services, could be crucial to success. Projections show the country’s
could reach around 6.3 billion U.S. dollars in 2023, rising to over 10 billion U.S. dollars by 2027.
Online shopping behavior
Amid the pandemic, online shopping in New Zealand experienced a surge in popularity, as widespread restrictions to in-store shopping drove growth in online sales. While online shopping remains popular among consumers,
total online retail expenditure remained relatively stagnant across all categories in 2022. That year, over one-third of New Zealand’s
shoppers said they had reduced their retail spending, with several buying less due to financial and economic reasons. Nonetheless, many of those who reduced their total retail spending actively spent more online than offline.
Online shopping remains more convenient for many consumers and allows them to thoroughly research products and compare prices across various websites. In tandem with rising living costs, more than half of consumers reported opting for a particular online store in 2023 due to discounts and special offers.
Growth of omnichannel shopping
Over 90 percent of
New Zealand’s population are active internet users, with digital shopping channels becoming a vital part of shopping experiences. With customers increasingly preferring to compare items and prices across different channels, as well as check stock availability and product information before purchasing in-store,
omnichannel shopping activities are becoming more prevalent across New Zealand. In 2023, over two-thirds of shoppers browsed online before purchasing an item in a physical store.
Digital payment methods
In 2022, the leading
payment method used for online transactions in New Zealand was card payment, with half of all online purchases paid for in this manner. Visa cards were by far the
top card scheme used for online purchases in New Zealand that same year, accounting for over 70 percent of all online transactions. Buy Now, Pay Later (BNPL) schemes have also gained traction in the county in recent years as an online payment alternative. Nonetheless, such payment systems come with risks, with buyers reporting that
BNPL options often led them to impulse purchase and overspend, sometimes resulting in late fees.
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