Online spend is growing at 15% in the regions, making them the fastest growing areas for eCommerce in New Zealand, a new report commissioned by NZ Post shows.
The Full Download: 2018 New Zealand eCommerce Review was commissioned by NZ Post in partnership with Datamine, using annonymised card transactions over the 2016 and 2017 years.
The report shows that spending by online shoppers on goods is growing the fastest in the Gisborne region, where online shoppers spent $30m last year, an increase of 19%.
It also revealed Taranaki shoppers were the biggest spenders on average per transaction, with an average online shopping basket of $124.50 and the number of transactions by online shoppers is growing the fastest in Northland at 36%.
NZ Post Chief Marketing Officer Bryan Dobson says the report shows that in New Zealand online shopping is growing at a rate of 13%, and is fuelled by a 23% increase in spend with overseas companies.
The report also identified that among local retailers online revenues increased 9%, 10 times the rate of ‘bricks and mortar’ sales.
“The report shows Kiwis spent $3.6b NZD online in 2017 and that made up 8.1% of total NZ retail spend. The average online shopper spends over $2,350 online each year, with rural online shoppers now the largest spenders, each spending over $2,500 online in 2017.
“But eCommerce is still growing, globally it is twice the size it was five years ago. By 2021 it is projected 17.5% of all global retail spend will come from eCommerce.
In New Zealand the number of online transactions are growing.
“People are shopping more often, and more often with overseas companies, for smaller amounts. This shows that Kiwis feel comfortable buying smaller value items more regularly online, and are really embracing shopping online for more everyday items,” Bryan Dobson says.
And there are differences between how Kiwi men and women are shopping.
“The report shows New Zealand women shop online more frequently than men, with an average of 23 online transactions per year, but men are spending more each time they shop online, almost $40 more per transaction.
“And it may surprise people that men are spending about twice as much as women per transaction in the Health and Beauty category,” Bryan Dobson says.
“The insights in the report will be of real value to Kiwi eCommerce businesses. eCommerce is growing, and we’re keen to help businesses grow even more.
“NZ Post is a natural partner for Kiwis shopping online. Last year we processed and delivered over 70 million parcels to New Zealand addresses or to international destinations, and this number is only rising.”
The full report can be accessed here: nzpost.co.nz/fulldownload
Source: NZ Post