Online shoppers not deterred by new GST rules

New research found 63pc of NZ online shoppers said they would still have purchased the product even with additional GST. Image / iStock

Paying GST on online purchases is unlikely to have a major impact on online shopping, with most shoppers saying they will still buy online according to research by comparison shopping company PriceMe.

The company, in collaboration with Massey Business School surveyed more than 700 customers about their shopping habits and found that of those that bought from overseas retailers, 67 per cent said one of the main reasons was because the products were cheaper than from New Zealand retailers with 61 per cent saying overseas retailers offered a wider choice of products.

PriceMe marketing director Chris Palmer said the survey had found that for the majority of shoppers, the addition of GST wouldn't change shopping habits.

"This is a very topical issue at present, with the government coming under pressure from retailers to change the law so that we all pay GST on everything we buy online, irrespective of where it's purchased from," Palmer said. "63 per cent of shoppers who had purchased from overseas-based retailers said they would still have purchased the product even with additional GST, and 30 per cent of respondents said they would not have bought the product if GST were added to the price."

The majority of consumers said they would still shop online with GST but 36 per cent said they would try to buy more locally. Palmer said the research also showed good news for New Zealand sellers.

"Local retailers can take heart that 89 per cent of those polled said that the majority of the online purchases they made were from New Zealand-based retailers," Palmer said.

"Only 18 per cent of respondents shopped with overseas-based retailers on a regular weekly or monthly basis, with the majority (66 per cent) saying they only purchased from overseas-based retailers a few times per year," he said. "16 per cent of respondents said they never buy from overseas-based retailers."

The survey also highlighted the growing use of smart phones to shop online with only 26 per cent of respondents saying they never use their mobile device to shop.

See the new research here: