Latest NZ Post report shows online opportunities for retailers.

This article was prepared by NZ Post and is being published by the New Zealand Herald as advertorial.

NZ Post’s latest Market Sentiments Report highlights how online shoppers have re-prioritised spending in search of value in these tough economic conditions. 

For many, “value” means finding lower prices, discounts and other deals. For other shoppers, the focus is on higher quality and a better shopping experience, according to the report – and NZ Post believes this means opportunities for online retailers to grow their business, despite tough times, by delivering what shoppers value.

Last year was expected to be a ‘business as usual’ year for online retail. It wasn’t to be. The tough economic conditions – driven by rising prices, increased mortgage repayments and the decline of real wages – saw online shoppers become more considered in how they spent their money. 

Nearly 40 per cent of shoppers said they shopped more online in 2023 than the year before – driven by a perception that there were better deals to be found online, and the heightened ability to research to find them. Shoppers searched for cheaper alternatives, rewards for bulk and frequency, free shipping, and any other special offer they could find.

While lower cost was priority, many shoppers searched for quality, spending a little more in the short term for better long-term value. Shoppers also placed high value on local retailers – preferring to shop local if price allowed – and on a better customer experience. 

Visibility rose to be the second most important reason for choosing a particular retailer, after discounts. Shoppers expect total transparency in the purchasing process, from upfront product and delivery information through to tracking their delivery all the way to their door.

Chris Wong, GM of Business, suggests that changes in what shoppers value creates many growth opportunities for retailers. He points to the Not Socks and Foxtrot Home case studies, in the latest Market Sentiments report, where growth was achieved by delivering quality, a great customer experience, and demonstrating the value they offer customers.

In the face of pricing pressures, as well as increasing global competition from marketplaces such as competition from global marketplaces, many online retailers adjusted their offering, their pricing, and their promotional activities to retain and attract customers. 

“Retailer margins are stretched but there are many opportunities, beyond reduced prices, for Kiwi online retailers to keep succeeding,” he says. “Our Market Sentiments Report offers a series of helpful hints on how retailers can deliver what shoppers value.” 

NZ Post is committed to being the best delivery partner for online shopping. Since 2018, it’s helped online retailers grow their business with online shopping numbers and insights through their regular eCommerce Spotlight and annual shopper and retailer research. The latest Market Sentiments research includes:

  • How shoppers and retailers fared in 2023 and their expectations for 2024.
  • How shoppers and retailers perceive value.
  • The rise of omnichannel shopping and sustainability.
  • The value a great delivery experience has on a retailers’ bottom line.
  • Where and how Kiwis are buying from overseas.

NZ Post’s eCommerce Market Sentiments Report 2024 is free. Download it at nzpostbusinessiq.co.nz