Online now accounts for one in four dollars spent on retail – NZ Post report
Almost one in four retail dollars spent in New Zealand is now allocated to online channels, marking a significant shift in consumer behavior. According to NZ Post’s E-commerce Market Sentiments Report, this trend is driven by growth in both transaction volumes and domestic basket values. New Zealand consumers completed nearly six million more online transactions last year compared with 2024, representing a six per cent increase. While online activity surged, spending through physical stores increased by only two per cent during the same period. Transaction volumes rose across both domestic and international retailers, yet online sales at New Zealand-based businesses grew at more than double the rate recorded by international retailers. The average online transaction value rose four per cent to $120, with domestic basket sizes increasing by five per cent while international basket sizes fell by one per cent. New Zealand retailers accounted for 79.6 per cent of total online spending, with orders from local businesses averaging over $50 compared to those from international sellers. Consumers cited shipping speed, local service, and returns as primary reasons for shopping locally. Conversely, price and product range remained the main drivers for purchases from overseas retailers. Chris Wong, GM business at NZ Post, noted that trust and transparency have emerged as critical factors amid cost-of-living pressures and online scams. More than half of shoppers search for independent reviews or real shopper feedback before purchasing. Additionally, around 40 per cent of New Zealand consumers have used generative AI tools to search for information and support purchase decisions. About 66 per cent of shoppers also actively look for discounts, highlighting a continued emphasis on value. The primary finding is that digital channels now capture 25 percent of total retail expenditure in New Zealand. This shift highlights a structural change where domestic businesses are outperforming international competitors in growth rates. While generative AI tools influence purchasing decisions for many shoppers, consumer reliance on trust signals remains high. Future market performance will depend on how well retailers adapt to cost-of-living pressures and maintain delivery reliability.
Published: June 11, 2026 at 09:32 AM
News Article
online-shopping
retail
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Content
Almost one in four retail dollars spent in New Zealand is now allocated to online channels, marking a significant shift in consumer behavior. According to NZ Post’s E-commerce Market Sentiments Report, this trend is driven by growth in both transaction volumes and domestic basket values. New Zealand consumers completed nearly six million more online transactions last year compared with 2024, representing a six per cent increase.
While online activity surged, spending through physical stores increased by only two per cent during the same period. Transaction volumes rose across both domestic and international retailers, yet online sales at New Zealand-based businesses grew at more than double the rate recorded by international retailers. The average online transaction value rose four per cent to $120, with domestic basket sizes increasing by five per cent while international basket sizes fell by one per cent.
New Zealand retailers accounted for 79.6 per cent of total online spending, with orders from local businesses averaging over $50 compared to those from international sellers. Consumers cited shipping speed, local service, and returns as primary reasons for shopping locally. Conversely, price and product range remained the main drivers for purchases from overseas retailers.
Chris Wong, GM business at NZ Post, noted that trust and transparency have emerged as critical factors amid cost-of-living pressures and online scams. More than half of shoppers search for independent reviews or real shopper feedback before purchasing. Additionally, around 40 per cent of New Zealand consumers have used generative AI tools to search for information and support purchase decisions. About 66 per cent of shoppers also actively look for discounts, highlighting a continued emphasis on value.
Key Insights
The primary finding is that digital channels now capture 25 percent of total retail expenditure in New Zealand.
This shift highlights a structural change where domestic businesses are outperforming international competitors in growth rates.
While generative AI tools influence purchasing decisions for many shoppers, consumer reliance on trust signals remains high.
Future market performance will depend on how well retailers adapt to cost-of-living pressures and maintain delivery reliability.