Professional sellers
Q2 2024: Online Shopping Sees Marginal Growth but Spending Remains Flat
Although Q2 2024 saw marginal growth in online shopping, the spending trajectory remains flat.
Last updated: 6 September 2024
Despite a slight 1% uplift in online shopping for Q2 2024, the overall spending trajectory remains flat, according to the latest New Zealand Post eCommerce insights*. This modest increase was driven by an 8% rise in the number of transactions; however, a smaller average basket size kept total spending steady.
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In today's challenging economic environment, Kiwi shoppers are increasingly price-conscious, spending more time comparing prices and hunting for discounts or cheaper alternatives to make their dollars go further. This shift in behaviour reflects the ongoing pressures on household budgets, with consumers focusing more on essential purchases rather than discretionary spending.
For retailers, particularly those on Trade Me, these insights highlight the need to optimise their strategies. Professional sellers should emphasise cost-effective listings, leverage their New Zealand-based operations to appeal to local buyers, and maximise their digital visibility. Offering flexible delivery options can further enhance their appeal in this highly competitive space.
A Glimpse of Hope for Retailers?
On the 14th of August, the Reserve Bank of New Zealand (RBNZ) cut interest rates for the first time in four years, signalling potential relief for businesses. With CPI inflation expected to return to the Monetary Policy Committee's target range and further easing anticipated*, this rate cut could mark the start of an improving retail landscape.
However, optimism remains cautious. A stable inflation trajectory, coupled with other factors like a softening labour market, will be critical in determining whether this recovery will take hold.
In the meantime, Kiwi businesses are strategically adapting to these economic conditions, with a growing focus on innovation, enhancing customer experience, and responding to evolving consumer preferences. Amid the uncertainty, the ability to adapt and deliver value will remain key.
*Reserve Bank of New Zealand Monetary Policy Statement August 2024
