Online now accounts for one in four dollars spent on retail in NZ

Uyen Duong

15th Jun 2026

Almost one in four retail dollars spent in New Zealand is now spent online, driven by growth in transaction volumes and domestic basket values.

New Zealand consumers made nearly six million more online transactions last year compared with 2024, representing a six per cent increase, according to NZ Post’s E-commerce Market Sentiments Report. By comparison, spending through physical stores increased by 2 per cent.

While transaction volumes increased across both domestic and international retailers, online sales at New Zealand-based businesses grew at more than double the rate recorded by international retailers.

The average online transaction value rose four per cent to $120, with domestic basket sizes up five per cent and international basket sizes down one per cent. Orders from New Zealand retailers were worth more than $50 on average, above those from international sellers. New Zealand retailers accounted for 79.6 per cent of total online spending.

Consumers cited shipping speed, local service and returns as reasons for shopping locally. Price and product range remained the main drivers of purchases from overseas retailers.

Chris Wong, GM business at NZ Post, said trust and transparency have emerged as factors in purchasing decisions amid cost-of-living pressures, international competition, online scams and the growth of AI.

“More than half of shoppers search for independent reviews, external ratings, or real shopper feedback before purchasing,” Wong said. “They also look for other signs of a legitimate business including a physical address, social media presence and the delivery partner.”

The report found that consumers are placing more emphasis on value. About 66 per cent of shoppers look for discounts. Meanwhile, 41 per cent compare and switch between products and retailers, while 27 per cent seek benefits and incentives.

AI is also playing a role in the purchasing process. Around 40 per cent of New Zealand consumers have used generative AI tools to search for information, compare products and support purchase decisions.

Wong said retailers that are visible to AI tools, easy to find, trusted by consumers and able to deliver consistently will be positioned for growth when consumer confidence returns.

• Further reading: The Great Exodus: Just one in four Gen Zs start their search on Google.