Domestic online retailers are gaining traction, according to data from the 2019 New Zealand E-commerce Review.

Over 65 per cent of shoppers said they prefer to purchase directly from New Zealand sites as opposed to overseas, the NZ Post-commissioned study shows.

“Domestic sales growth is outstripping international online sales growth,” said Bryan Dobson chief marketing officer of New Zealand Post.

According to NZ Post, this swing back to local business is the most encouraging news for Kiwi retailers.

“Shoppers are telling us they trust domestic retailers more and want to support homegrown business wherever possible,” the report said.

The report shows online is not only outperforming bricks and mortar retail sales, it revealed the nation is getting more comfortable and better at it.

Over 1.8 million Kiwis shopped online in 2018 and 44 per cent are doing so regularly, clicking that buy button more than once a month.

The latest data reveals Kiwi shoppers are transacting 10 per cent more often on average, compared to 2017.

“We’ve also seen a rise in spend per transaction up by 4 per cent, from $97 to $100. This may not seem large, but annually it amounts to a significant 14 per cent increase in spend per shopper.”

Dobson said online consumers are spending some $4.2 billion annually on online purchases, close to 9 per cent of total retail spending.

“Globally, that puts us on a par with Australia, but still some distance behind the UK, where online retail spend is 18 per cent of total spending.

The NZ post study also highlighted the rise in popularity of Buy Now Pay Later (BNPL) with younger females being felt online, fuelled by a plethora of financial suppliers like Afterpay, Oxipay and Laybuy.

“Some 12 per cent of all Kiwi online shoppers used BNPL in 2018,” according to NZ Post. “We predict this is only going to continue to gain momentum, particularly in the Clothing & Footwear sector.”