Top Online Stores in New Zealand: Market Development, Revenue & Mobile Commerce

Top Online Stores in New Zealand: Key Insights

• Market Leaders: Countdown.co.nz leads New Zealand's eCommerce with US$636 million in 2023 net sales, followed by Chemistwarehouse.co.nz, Shein.com, Apple.com, and Farmers.co.nz, highlighting a focus on electronics and fashion.

• Engagement Strategies: Countdown leverages its OneCard system and app for customer rewards. Shein dominates the fashion market with trendy, affordable products and targeted marketing aimed at the youth.

• Shopping Trends: New Zealand's online shopping habits are evolving: 60% research online, 56% prioritize reviews, 29% prefer in-store experiences, and 28% make large purchases via mobile.

• Connectivity Boost: New Zealand's 98% internet and 72% eCommerce penetration, driven by the Ultrafast Broadband initiative, deliver speeds up to 1,000 Mbps, enhancing online shopping and sales.

In New Zealand, the shift to online shopping is more than just a trend — fast-tracked by the Covid-19 pandemic, a transformation is underway. Lockdowns and restrictions have driven consumers to embrace eCommerce like never before.

Our analysis reveals that New Zealand's eCommerce market is projected to hit US$7.5 billion by year-end, ranking 39th globally and outpacing countries like Ireland and Portugal.

So, which online stores are winning over Kiwi shoppers?

Top Online Stores in New Zealand: Countdown on Top  

As per our 2023 numbers, following are the top online stores in New Zealand.

• Countdown.co.nz remains the leading online store in New Zealand, generating net sales of US$636 million.

• Chemistwarehouse.co.nz takes the second spot with US$260 million,

• Closely followed by shein.com with US$244 million.

• Apple.com and farmers.co.nz round out the top five, with net sales of US$212 million and US$194 million, respectively.

Let's take a closer look at each store dominating the New Zealand eCommerce market.

1. Countdown.co.nz

The Australian-owned full-service supermarket chain is a subsidiary of the Woolworths New Zealand company. Its online store and mobile application, however, also account for their success across the country. The supermarket chain promotes several specials through their mobile application.

The OneCard system, which is an integrated approach to eCommerce, requires users to get the card in local Countdown stores and register online. Every time customers shop, they earn points and get access to discounts to earn rewards. By logging into the myCountdown app, users can track points on the dashboard.

2. Chemistwarehouse.co.nz

Chemist Warehouse has become a favorite among Kiwi shoppers, thanks to its vast selection of care products (accounting for 53.8% of the online care products market in the country) at unbeatable prices. The store's strong online presence, with a user-friendly website and mobile app, offers convenient features like online prescriptions and click-and-collect services.

Chemist Warehouse announced a significant merger with Sigma Healthcare in December 2023, aiming to create a powerhouse in the pharmacy sector. This merger is set to enhance their supply chain capabilities and further strengthen their market position. Despite some regulatory scrutiny, the merger could bring about more competitive pricing and better service for New Zealand customers.

Chemist Warehouse's aggressive expansion from Australia to New Zealand has been part of a broader strategy to dominate the eCommerce market. Their ability to blend discount retailing with strong online sales has made them a key player in New Zealand's online shopping scene.

3. Shein.com

Shein.com is the top online store in New Zealand's fashion eCommerce market, ahead of farmers.co.nz. Well known for its fast fashion business model, this eCommerce retailer has both a website and a mobile application. Although no specific figure is available for New Zealand, the app scored 262 million app downloads worldwide by the end of 2023.

Millions of people shop Shein given how cheap and trendy their products are, which often lures in young people aged 18 to 24. Shein has an algorithm-driven supply chain and invests heavily in online marketing, this includes clothing hauls on social media platforms whereby influencers try on Shein clothes and promote the company via their social media, particularly TikTok, Instagram and YouTube.

4. Apple.com

Despite earning 0.4% of its eCommerce net sales in New Zealand, apple.com leads the online electronics market in the country by far, having generated US$212 million last year. The closest competitor is the local noelleeming.co.nz with only US$73 million made last year.

Apple's stronghold in many markets around the world is driven by its continuous innovation and seamless integration of technology. Recently, Apple announced a landmark AI agreement with OpenAI, positioning itself at the forefront of artificial intelligence developments. This includes integrating OpenAI's ChatGPT with Apple devices and enhancing their suite of apps with new "Apple Intelligence" technology.

5. Farmers.co.nz

The Auckland-native company's online store has been seeing a more or less consistent growth over the past few years.

• Following up on 2018's 171% growth, farmers.co.nz grew by 21% in 2019.

• In 2020, the online store's growth (13%) stayed under the overall eCommerce market growth in the country (20%).

• Picking up speed, farmers.co.nz finished 2021 with 37% growth, despite following up with a lower 5% in the next year.

• The online store got back up on its feet last year, growing by almost 19%. Our forecast for this year indicates a 16% growth for farmers.co.nz.

As mentioned earlier, the online store is the second top online store in New Zealand fashion market. Farmers.co.nz achieves this by holding 6.6% market share, which amounts to US$106 million.

Online Consumer Behavior in New Zealand

In New Zealand, the way people shop online is evolving. A Statista Consumer Insights survey provides insight into these changes.

60% of New Zealand shoppers research products online before buying something important. Also, 56% of people think customer reviews are very helpful. The survey also found that 30% of shoppers like to get their orders quickly through express delivery.

However, 29% of people still like to see and feel what they're buying in person, which suggests they also enjoy shopping in physical stores. Plus, 28% often buy big items using their phones or tablets.

Role of Internet Infrastructure in eCommerce

One of the reasons eCommerce shows great potential in New Zealand is because of the high rate of internet penetration. According to our country report, the country has an impressive 98% internet penetration rate.

In proportion to the country’s high internet penetration, eCommerce penetration is also high. As per our country report, this number is at 72%.

In 2010, New Zealand’s Ministry of Business, Innovation and Employment launched the Ultrafast Broadband (UFB) initiative nationwide, geared at making fiber-to-the-premise (FTTP) available to 87% of New Zealanders by the end of 2022. The installation of optical fiber directly to individual buildings such as homes or businesses provides for high-speed internet connection. 

FTTP is beneficial since it can deliver speeds close to 1,000 Megabits per second (Mbps), depending on the retail offer selected by the user, which is considered fast internet speed. This speed easily handles demanding online activities such as streaming high-definition video, online gaming, and downloading large files and is significantly faster than standard internet connections. 

There are several reasons why fast internet connections are important in eCommerce:

• Fast page load times are critical to eCommerce sales. Research shows that a 100-millisecond delay can cost you 1% of potential sales. Today's consumer craves a fast and seamless online shopping experience, and slow sites drive them to competition.

• Additionally, fast internet speed not only boosts your search engine rankings, but it also improves the user experience, reduces bandwidth costs, increases productivity, improves customer satisfaction, and reduces operational costs.

• A reliable and fast internet connection is key to increasing sales, as customers instinctively flock to sites that load quickly.  

Top Online Stores in New Zealand:
Closing Thoughts

The online shopping landscape in New Zealand has already shifted towards mobile-first and mobile commerce approaches. High internet penetration and the use of digital technologies and mobile apps have made online shopping more convenient and accessible, while fast internet speed enables seamless and speedy online experiences, crucial for driving sales.

Overall, the integration of digital technologies, mobile-first strategies, and fast internet connections have contributed to the success of online stores in New Zealand and will continue to drive growth.

Sources: Conductor, Countdown, Crown Infrastructure, ECDB, HighSpeedInternet, Solid Signal, Statista: 1, 2, NZ Post