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Home / New Zealand

Overseas website spend climbs 8.3%

Catherine Gaffaney
By Catherine Gaffaney
Reporter·Wairarapa Times-Age·
3 Feb, 2015 06:00 PM3 mins to read

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PUSH OF A BUTTON: Online shopping creates an "uneven playing field" for Wairarapa retailers.PHOTO/FILE
PUSH OF A BUTTON: Online shopping creates an "uneven playing field" for Wairarapa retailers.PHOTO/FILE

PUSH OF A BUTTON: Online shopping creates an "uneven playing field" for Wairarapa retailers.PHOTO/FILE

Wairarapa residents are spending more on overseas websites - making it even harder for Wairarapa businesses to compete, a retailer says.

The BNZ Marketview report for December showed an 8.3 per cent increase in spending by Wairarapa residents on overseas sites compared to December 2013. Spending on domestic sites was down by 10.9 per cent, however, bringing the region's online shopping down by 4.4 per cent overall.

Steve Laurence, owner of Almo Books in Carterton, said overseas websites created an uneven playing field.

"If people buy from us, they have to pay the GST. If they buy from an overseas website, they don't. It creates unfair competition," he said.

Mr Laurence believed it was up to the Government to find a way to collect GST on all imports, regardless of their value.

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"The argument, that it's not cost effective, is okay in the short term but they never really considered a situation where anyone could buy anything from anywhere in the world and get it here in a few days by a little man in a yellow van with a stroke of a credit card.

"It's a big issue for New Zealand retailers."

Mr Laurence said he'd like to think Wairarapa support for Wairarapa businesses would continue.

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"We're very grateful for the local people who do support us. I think they value the fact we're here, that they do have somewhere to go shopping.

"I think they realise we wouldn't be here without them."

Almo Books also sells books online which are mostly purchased by overseas customers, he said.

Marketview managing director Stephen Bridle said it was interesting to see New Zealanders living outside of metro areas embracing online spending on overseas sites.

"The growth in e-commerce internationally has started putting 5th Avenue and Oxford St into the living rooms and kitchens of provincial New Zealand households - and they seem to love it," he said.

Nationally, online spending was up 12 per cent from December 2013.

At domestic merchants, online spending increased 7 per cent year-on-year.

BNZ institutional research director Gary Baker said it was a strong result for December as online spending had been growing at only 3 or 4 per cent per annum for most of the year .

Kiwis also spent 19 per cent more on overseas sites than the year prior, despite the New Zealand dollar being down a further 6 per cent against the US dollar than in December 2013.

Food and entertainment goods were the stand out categories for online spending growth, with increases of more than 20 per cent from December 2013, the report found.

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On domestic sites, spending on "newspaper and books" and "computers and peripherals" were also strong - up 18 per cent and 21 per cent respectively, while spending on clothing increased by 19 per cent on overseas sites.

Overall, it seemed the proportion of Christmas presents bought online increased another notch in 2014, Mr Baker said.

"This year we have seen a shift in the timing of online purchases, with an increase in the percentage of domestic online transactions completed in the three days just prior to Christmas," he said.

"A few delayed transactions aside, it seems to us this is an indication of consumers' growing confidence in shopping online, and their willingness to wait for those last minute deals.

"It also points to the efficiency of New Zealand e-tailers supply chains. If consumers know they will get reliable service, it can only help to increase online purchase levels."

Spending at physical stores was up by about 4 per cent on December 2013. NZME.

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