Online shopping has established itself as a crucial element of the retail environment in New Zealand. The 2024 Ecommerce Report released by IAB Australia and Pureprofile reveals that 77% of Kiwis engage in online purchases. Meanwhile, 83% of their Australian counterparts are doing the same on a monthly basis.
The survey, which involved 1000 New Zealand and 1000 Australian online shoppers during July 2024, revealed a growing trend of consumers emphasising lower prices and discounts. Additionally, 62% of respondents reported switching products and brands in search of more affordable options.
The most popular online shopping categories among Australians and New Zealanders were clothing, fashion, and shoes (70%), groceries (58%), and meals and takeout (56%). Additionally, ethical brands were important considerations for 46% of Australians and 39% of online shoppers in New Zealand.
The most common way for shoppers to discover products was through search engines, while 38% used price comparison websites and services, and 20% looked for discounts during major shopping events.
Loyalty and rewards programs have become increasingly valuable for both consumers and retailers. In fact, 92% of the respondents said they are enrolled in at least one loyalty or rewards program. 95% of shoppers also expressed their willingness to share some of their personal data with retailers in exchange for discount coupons, free delivery deals, rewards points, and cash back.
Martin Filz, the CEO of Pureprofile, shared his insights regarding the findings. “In a quest for savings, consumers are prioritising the best deals and frequently switching brands to secure a better price. While budgets are tighter, retailers still have a great opportunity to capture attention, with most consumers still engaging with some form of retailer marketing.”
The report also highlights a significant increase in consumer concerns regarding data usage by retailers. 71% of online shoppers expressed worries about how their personal information is being utilised, a notable rise from 59% in the previous year. While 80% of online shoppers are aware that their data is being used for targeted advertising, marketing, and personalisation.
“It is critical that retail businesses ensure they are providing clear information about their use of shoppers’ personal information, particularly with new privacy regulations in Australia imminent,” Gai Le Roy, CEO of IAB Australia, stated.
The Australian and New Zealand Ecommerce Report, published on August 13, 2024, examines the consumer attitudes, behaviours, and influences that drive the rapidly growing e-commerce market. This marks the fourth annual report for the Australian market and the first year for a survey conducted among online shoppers in New Zealand.