In 2024, New Zealand shoppers spent over $6.09 billion online, marking a 5% increase from 2023 despite tough economic conditions.
The NZ Post's Latest eCommerce Insights shows the year saw a record number of online transactions, both locally and internationally, as consumers adapted their spending habits to seek better value.
This resilience in online shopping underscores its critical role in helping Kiwi households navigate financial challenges and supports a more resilient local economy.
The increase in online shopping frequency led to nearly 8 million more transactions than in 2023, even surpassing volumes seen during COVID lockdowns.
However, the average spend per transaction decreased as shoppers opted for lower-cost alternatives and discounted products.
Local online retailers dominated, with 72% of online spending directed towards New Zealand-based businesses, though international retailers like Temu and Shein made significant inroads by attracting Kiwi shoppers with competitive pricing.
Offshore online transactions grew by 16%, outpacing the 12% growth in domestic transactions.
Despite this growth, the average spend per transaction for offshore retailers fell by 10%, compared to a 6% decline for domestic retailers. Instore spending dropped by 2.5%, highlighting the challenging year for retail business owners.
Overall, total retail spending in 2024, combining online and instore, was $56.56 billion, down 1.7% from the previous year, with online sales representing nearly 11% of total retail spending.