eCommerce: New Zealand

Top Online Stores in New Zealand:
Key Insights

• Market Leaders: Countdown.co.nz leads with US$636 million of net sales in 2023, followed by Chemistwarehouse.co.nz, Shein.com, Apple.com, and Farmers.co.nz, showcasing a market focused on electronics and fashion.

• Engagement Strategies: Countdown uses its OneCard system and app for customer rewards, while Shein captures the fashion market with trendy, affordable products and aggressive marketing targeting the youth.

• Shopping Trends: Online shopping in New Zealand is changing: 60% research online, 56% value reviews, 29% prefer in-store experiences, and 28% buy big items on mobile.

• Connectivity Boost: New Zealand's 98% internet and 72% eCommerce penetration rates are propelled by the Ultrafast Broadband initiative, reaching speeds up to 1,000 Mbps for a big chunk of the population, therefore improving online shopping and sales.

As in many other countries, consumer behavior in New Zealand is shifting to online shopping. This transformation was accelerated by the Covid-19 pandemic, where restrictions and closures have pushed more consumers to shop online.

According to our analysis, New Zealand's eCommerce market is expected to reach US$7.5 billion by the end of this year. 39th worldwide, New Zealand's eCommerce market is positioned ahead of names like Ireland and Portugal.

But which online stores dominate the Kiwi nation?

Top Online Stores in New Zealand: Countdown on Top  

As per our 2023 numbers, countdown.co.nz remains the leading online store in New Zealand, generating net sales of US$636 million. Chemistwarehouse.co.nz takes the second spot with US$260 million, closely followed by shein.com with US$244 million. Apple.com and farmers.co.nz round out the top five, with net sales of US$212 million and US$194 million, respectively.

The eCommerce landscape in New Zealand encompasses seven key markets. Electronics has surged to become the largest market, contributing 27.9% to the country's eCommerce revenue. Fashion holds the second position at 23%, while Hobby & Leisure captures 14% of the market. Furniture & Homeware and Grocery follow with 11.3% and 10.3% of the revenue, respectively. Care Products and DIY bring up the rear, accounting for 6.8% and 6.7% of the market.

Countdown.co.nz: Engagement Through Digital Integration

The Australian-owned full-service supermarket chain is a subsidiary of the Woolworths New Zealand company. Its online store and mobile application, however, also account for their success across the country. The supermarket chain promotes several specials through their mobile application.

The OneCard system, which is an integrated approach to eCommerce, requires users to get the card in local Countdown stores and register online. Every time customers shop, they earn points and get access to discounts to earn rewards. By logging into the myCountdown app, users can track points on the dashboard.

Shein's Rise in New Zealand

With less than a US$ million difference, shein.com is the top online store in New Zealand's fashion eCommerce market, ahead of farmers.co.nz. Well known for its fast fashion business model, this eCommerce retailer has both a website and a mobile application. Although no specific figure is available for New Zealand, the app scored 262 million app downloads worldwide by the end of 2023.

Millions of people shop Shein given how cheap and trendy their products are, which often lures in young people aged 18 to 24. Shein has an algorithm-driven supply chain and invests heavily in online marketing, this includes clothing hauls on social media platforms whereby influencers try on Shein clothes and promote the company via their social media, particularly TikTok, Instagram and YouTube.

Online Consumer Behavior in New Zealand

In New Zealand, the way people shop online is evolving. A Statista Consumer Insights survey provides insight into these changes.

60% of New Zealand shoppers research products online before buying something important. Also, 56% of people think customer reviews are very helpful. The survey also found that 30% of shoppers like to get their orders quickly through express delivery.

However, 29% of people still like to see and feel what they're buying in person, which suggests they also enjoy shopping in physical stores. Plus, 28% often buy big items using their phones or tablets.

Role of Internet Infrastructure in eCommerce

One of the reasons eCommerce shows great potential in New Zealand is because of the high rate of internet penetration. According to our country report, the country has an impressive 98% internet penetration rate.

In proportion to the country’s high internet penetration, eCommerce penetration is also high. As per our country report, this number is at 72%.

In 2010, New Zealand’s Ministry of Business, Innovation and Employment launched the Ultrafast Broadband (UFB) initiative nationwide, geared at making fiber-to-the-premise (FTTP) available to 87% of New Zealanders by the end of 2022. The installation of optical fiber directly to individual buildings such as homes or businesses provides for high-speed internet connection. 

FTTP is beneficial since it can deliver speeds close to 1,000 Megabits per second (Mbps), depending on the retail offer selected by the user, which is considered fast internet speed. This speed easily handles demanding online activities such as streaming high-definition video, online gaming, and downloading large files and is significantly faster than standard internet connections. 

There are several reasons why fast internet connections are important in eCommerce. Fast page load times are critical to eCommerce sales. Research shows that a 100-millisecond delay can cost you 1% of potential sales. Today's consumer craves a fast and seamless online shopping experience, and slow sites drive them to competition. Additionally, fast internet speed not only boosts your search engine rankings, but it also improves the user experience, reduces bandwidth costs, increases productivity, improves customer satisfaction, and reduces operational costs. A reliable and fast internet connection is key to increasing sales, as customers instinctively flock to sites that load quickly.  

Top Online Stores in New Zealand:
Closing Thoughts

The online shopping landscape in New Zealand has already shifted towards mobile-first and mobile commerce approaches. High internet penetration and the use of digital technologies and mobile apps have made online shopping more convenient and accessible, while fast internet speed enables seamless and speedy online experiences, crucial for driving sales.

Overall, the integration of digital technologies, mobile-first strategies, and fast internet connections have contributed to the success of online stores in New Zealand and will continue to drive growth.

Sources: Conductor, Countdown, Crown Infrastructure, ECDB, HighSpeedInternet, Solid Signal,
Statista: 1, 2