Successful business owners are always asking, “What more can I do?” The business owners that become market leaders go a step further and ask, “Where can I go next?”
With a well-established online marketplace infrastructure and millions of online shoppers turning to the internet for their purchases, New Zealand should be top of mind for any ambitious online seller.
Large market, with large supply gaps
Let’s talk numbers. How much is the Kiwi online market worth? Nielsen Consumer and Media Insights estimated the New Zealand market size at $4.9 Billion in 2016.
New Zealand can get overshadowed by its larger neighbor, Australia, but the country has seen a 33% growth in eCommerce from 2006 to 2016 and continues to grow.
According to New Zealand’s largest marketplace Trade Me, over 2 million Kiwis shop online. But because of a limited selection of products locally, 38% of transactions take place offshore. This means that online sellers who are able to sell locally, providing faster shipping at better prices, can fill in gaps in demand and win a large chunk of the market. And that means more earnings in your pocket without having to invest in language or translation services.
New Zealand has sophisticated online marketplaces that can make setting up shop in a new country easier. The biggest and most popular marketplace is Trade Me, which boasts a simple 5 step launch process for online sellers. The online shopping network receives nearly 1 million visitors daily and saw 6.6 million items sold in 2015 to over 4.7 million people.
While Amazon doesn’t have a separate website in New Zealand, the retail giant is still a key eCommerce platform for both Australia and New Zealand, representing 20% of eCommerce purchases in New Zealand according to Nielsen. New Zealand also has specialized marketplaces for specific product categories. Online retailer WOW HD offers games, CDs, DVDs, cosmetics and books, while Ezibuy is the largest multi-channel retailer in the region, specializing in clothing, home goods and gifts. Online retailers The Warehouse and Mighty Ape — which delivers thousands of orders in a variety of categories every day — are two other popular online retailers.
Demand for global brands
New Zealanders are looking for products that don’t exist domestically and sellers that can leverage the trust and security of local online marketplaces can quickly scale their business to increase their eCommerce profits. For some product categories, the demand for foreign products is markedly high. As an example, only 10% of Kiwis say they prefer locally-branded baby formula, while less than 20% have a preference for skin care products by local brands. That translates into a market that’s prime for US sellers to sell foreign-branded products that are in demand in New Zealand.
Follow the sun
In addition to possessing a strong eCommerce infrastructure and a growing customer base interested in foreign-branded products, New Zealand’s reverse seasonality can enable American online business owners to sell seasonal products year-round. While your summer clothing may not be in demand in the winter months in the US, that time of the year is high summer for Kiwis, so sellers can still sell their excess inventory at premium prices.
With large supply gaps, no language barriers, established eCommerce sites, and the ability to make a profit from leftover seasonal inventory, New Zealand is the perfect next step for your eCommerce business.
Ready to take up the opportunity and do more with your online business? It’s easy to get started today. WorldFirst now offers local New Zealand Dollar currency accounts that make it easier and more cost-effective for global online businesses to trade in New Zealand. By opening an NZD account, you can not only receive money from Kiwi customers in NZD, but also pay suppliers in New Zealand in the local currency. Why does this matter? By operating like a local business, you can minimize the typical costs and markups associated with cross-border, cross-currency transfers, such as international banking fees. And that means more back in your business. Get ready to launch by signing up for a free NZD account.