Online retail spending was up 14 per cent compared in October compared to last year, continuing the strong trend of recent months, according to the latest data from BNZ.

Online retail sales at local sites were up 11 per cent on last October while online retail sales at offshore sites were up 17 per cent on last year

October 1 was the first day of the ‘Netflix tax’, which added GST to digital online services from international providers. However, our reported figures exclude GST, which means they exclude the estimated impact on prices from the ‘Netflix tax’.  Only a few weeks out from its implementation, it’s too early to clearly identify any effects on underlying purchase behaviour.  Prima-facie, there appears to be no obvious volume impact so far, for the digital goods which fall into the retail categories we track. (N.B. TV subscriptions are not included as “Retail” under the ANZSIC system, and are not in our series).

Online spending could replace physical shopping at Christmas time for some consumers, but Consumer Protection said there are risks to be considered.

“It’s hard to assess the quality of products without physically seeing them and it’s harder again to judge the trustworthiness of a business just by visiting their website,” said Mark Hollingsworth, MBIE consumer protection manager.

“Common issues include the goods not being delivered or being delivered well outside the predicted timeframe.”

“Shopping online can be a very handy way to purchase gifts this Christmas, but know the risks and do your homework.”