Local retailers capture nearly 80% of NZ online spending – how can cross-border sellers respond?

Summary

NZ Post's e-commerce research note, released on 11 July 2026, reviewed New Zealand's online shopping performance in 2025: local retailers accounted for 79.6% of all online spending, while transaction volumes with overseas retailers continued to grow, but the average order value for local merchants was more than NZ$50 higher than for overseas merchants. The research describes two types of demand separately – overseas shopping is more driven by price, value and product choice, while local shopping is supported by faster delivery, local service and convenient returns. For Chinese cross-border sellers, the article suggests finding business space through product value, landed cost, delivery and returns, and genuine store information: low prices should be compared on a landed-cost basis, incorporating shipping, platform fees, packaging and after-sales costs into a complete quotation calculation; product selection should focus on items with stable supply versions, verifiable inventory and complete product information, starting with small-scale validation before expanding into adjacent categories.

Using overseas warehouses can improve outbound arrangements for some products, but a warehouse address is not a panacea – whether goods are genuinely available for sale, whether parcels are prepared, and whether carrier routes can cover buyer addresses all affect delivery.

Commentary

Nearly 80% of spending in New Zealand's online shopping market goes to local merchants, but overseas transaction volumes are still growing – this structural feature is not simply negative for Chinese cross-border sellers. NZ Post research shows that the average order value for local merchants is more than NZ$50 higher than for overseas merchants, reflecting that local shopping relies more on fast delivery, local service and convenient returns, while overseas shopping is driven by price, value and product choice. For Chinese sellers, the competitive focus should shift from pure low price to 'landed cost' and delivery certainty.

Although the New Zealand market is small, e-commerce penetration is high, and consumer acceptance of cross-border goods is stable, especially in long-tail categories and value-for-money products where there is still room. It is worth noting that New Zealand's local retail sector is highly concentrated, with discount retailers such as The Warehouse and Kmart and local e-commerce platforms such as Trade Me occupying traffic gateways. If cross-border sellers rely solely on platform advertising, customer acquisition costs may erode profits.

A more pragmatic strategy is to leverage the SKU depth of China's supply chain, select niche categories that local merchants are unwilling to stock, such as specific accessories, tools or seasonal goods, and compress delivery times to 3–5 days through overseas warehouses or partnerships with local 3PLs, while clarifying return policies to reduce buyers' decision risk. In addition, New Zealand consumers are price-sensitive but not without limits; sellers should avoid falling into low-price competition and instead increase average order value through bundle sales or subscription models. For NZ SMEs, those engaged in importing or e-commerce services could focus on Chinese sellers' demand for local warehousing, returns processing and last-mile delivery – this itself is a B2B opportunity.

Keywords: NZ online shopping, local retailers, cross-border e-commerce, NZ Post, overseas warehouse, landed cost, delivery and returns, average order value

Photo by Mediamodifier on Pixabay

Source: ESG Cross-border