Nielsen, a market research firm, has estimated that in 2001 only 10 per cent of New Zealanders aged over 18 shopped online. These days the figure is thought to be about 46 per cent.
Nielsen also estimates that Kiwis spent about $2.3 billion shopping online over the past year, based on a database of 12,000 people the company interviews annually and a survey it did in January.
Retailers Association chief executive John Albertson said it became difficult for local businesses to compete against overseas-based online stores when the kiwi dollar surged against the greenback.
And it was unfair on local retail firms that items sold by overseas operators for less than $400 were not subject to GST, Albertson said.
"Our view is that if you're going to tax consumption, then you should tax all consumption ... that's something we're talking to the Government about."
But the flow of products is not all one way.
Many New Zealand businesses offer their wares online, including Auckland-based fashion label Stolen Girlfriends Club.
Dan Gosling, the label's co-founder and director, said around 25 per cent of the firm's sales were online, with halfof them made to overseas customers.
Large amounts of New Zealand baby formula are sold online in China, where fear of contaminated dairy products has made parents afraid of giving locally made formula to their children.APN News & Media