Domestic online E-commerce spending up
In this article (5)
Online spending on local sites has strengthened in July and helped to boost the country’s total online retail sales compared to the previous corresponding period.
Spending on New Zealand sites rose 18 percent compared to the previous year – again driven by food and grocery categories in recent months.
New Zealand’s total online retail spending in July was 9 percent higher than a year ago. Excluding the food and liquor sectors, annual online spending was equivalent to 11.1 percent of retail sales, according to both Statistics New Zealand and Bank of New Zealand’s indices.
Spending growth at offshore sites fell slightly in July, with online spending down 3 percent on July last year.
Spending on entertainment media among international e-commerce companies grew strongly but was offset by broad-based softening across most other categories at offshore sites.
Gary Baker, director of institutional research at Bank of New Zealand, said annual online spending across the retail categories they cover is running at just over $4.6 billion, excluding GST.
“This is equivalent to 8 percent of total retail sales reported in Statistics NZ’s Retail Trade Series (RTS), comparing like-for-like categories,” Baker said.
Questions & Answers
Q.What was the total increase in online retail spending in New Zealand for July compared to the previous year?
What was the total increase in online retail spending in New Zealand for July compared to the previous year?
New Zealand's total online retail spending in July was 9 percent higher than it was a year ago. This growth was primarily driven by increased spending on local sites.
Q.Which specific categories primarily contributed to the rise in spending on New Zealand-based online sites?
Which specific categories primarily contributed to the rise in spending on New Zealand-based online sites?
The increase in spending on New Zealand sites, which rose 18 percent compared to the previous year, was again driven by the food and grocery categories, consistent with recent months.
Q.How did spending on international e-commerce sites change in July?
How did spending on international e-commerce sites change in July?
Spending growth at offshore sites fell slightly in July, showing a 3 percent decrease compared to July last year. Strong growth in entertainment media was offset by declines in most other categories.
Q.What is the estimated annual online spending across the retail categories covered by Bank of New Zealand?
What is the estimated annual online spending across the retail categories covered by Bank of New Zealand?
According to Gary Baker of Bank of New Zealand, annual online spending across their covered retail categories is just over $4.6 billion, excluding GST. This accounts for 8 percent of total retail sales in comparable categories.
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