New Zealand's e-commerce market to reach $10.8b by 2028

The market grew by 12.3% to $7.5b in 2023.

The e-commerce market in New Zealand is expected to grow at a compound annual growth rate (CAGR) of 7.1%, reaching $10.8b (NZD17.6 b) by 2028, according to GlobalData. This growth is driven by a significant shift from offline to online shopping.

In 2023, the country’s e-commerce market grew by 12.3% to $7.5b (NZD12.1b). 

“The e-commerce market in New Zealand is well-developed, supported by the country’s robust technology infrastructure, which ensures the availability of high-speed internet as well as a strong supply of tech-savvy customers, and the availability of secure online payment solutions,” said Shivani Gupta, senior banking and payments Analyst at GlobalData.

Key shopping events such as Black Friday and Cyber Monday have also boosted online sales, he said.

International brands are entering the New Zealand market, with Spanish retailer Mango launching its e-commerce site in May 2024, and American Apparel launching in March 2024, the report said.

Innovative shopping methods, like livestreaming, are being used to attract consumers.

In May 2023, NZ Herald and The Warehouse Group launched “The Selection Live Shopping,” an online shopping channel aimed at expanding the customer base.

Payment cards dominated the e-commerce space in 2023, holding a 57% market share, with credit and charge cards accounting for 36.6% of transactions due to their added benefits. 

Alternative payment methods, such as Afterpay, Apple Pay, and PayPal, accounted for 23.2% of e-commerce payments, whilst cash usage remains low at just 3%.

Looking ahead, Gupta forecasts a 10.1% growth in e-commerce sales in 2024, reaching $8.2b (NZD13.4b). “Though alternative payments are gradually displacing cash and other traditional payment methods, they still have a long way to go before they can challenge the dominance of payment cards.