new zealand e commerce

Here’s Why New Zealand E-Commerce Is on the Rise

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New Zealand e-commerce is on the rise. Annual spending has risen to an estimated 3.8 billion across retail categories. It’s up 16% since 2016.

But which factors are responsible for the rise in New Zealand e-commerce? Keep reading to learn the latest trends and developments.

A New Alipay System Launched in 2016

Last year, Alibaba joined forces with New Zealand based IE Money to launch Alipay. Alibaba was already the world’s largest mobile payment company, with over 2 billion customers.

Alipay’s system uses a seamless payment link. This system makes it easy for mobile shoppers to securely purchase items online.

Even better, there were already over 2,000 brands, retailers, and merchants from all over Australasia using Alibaba. Approximately 600 of those retailers are from New Zealand.

Retailer’s Who Cater to Smartphone Users

90% of Kiwi’s now own a smartphone. The increased use of smartphones helps New Zealand e-commerce grow.

Most shoppers go online before making a purchase. They want to research the convenience, price, and the value of items before making a decision. They do this whether they are planning on shopping in-store or online.

After doing research, most shoppers then buy the goods or services the same day. As such, forward-thinking retailers should continue to offer and support smartphone shopping.

The new changes to New Zealand’s GST Act should also help local businesses. It will help them compete with the goods and services already being offered by companies from Australia, China, UK, and the US.

Ease of Shipping

Being in New Zealand has its perks. It’s a beautiful country with countless natural attractions.

But it’s also far away from the rest of the world. New Zealand’s distance has made it difficult for the quick delivery of online purchases.

With great delivery service now possible, though, it gives e-retailers an edge over their competitors. Savvy online retailers now allow their customers to collect their purchases in-store after shopping online.

Local online retailers like Sportsfuel Supplements NZ, for example, now offer extra perks like same-day packing and free shipping all throughout New Zealand.

New Zealand E-Commerce is Linked to Social Media Use

Gaining the trust of your consumers is a huge factor when becoming a successful e-commerce business. Without trust, you’ll end up with a lot of potential purchases abandoned in online carts.

Since most New Zealand businesses have a social media presence, Kiwi shoppers are able to use their smartphones and other devices to access online retailer’s social media sites.

These e-commerce companies then use social media to help them build brand awareness, engage with customers, make sales, and deliver their goods.

Keeping an Online Presence at all Times is Imperative

As it becomes easier for New Zealander’s to shop online, it will mean more traffic to your e-commerce website. It’s important to build a site that consumers like, trust, and want to buy from.

But it’s also just as important to ensure your site is always online. Your website crashing could devastate your business.

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