Amazon has announced plans to open an online store in Australia, but what about New Zealand? That’s the question ‘Is Amazon Coming to New Zealand?’, this article seeks to answer. While many companies have already made moves into the lucrative New Zealand market, such as Alibaba and Facebook, Amazon itself has not yet entered the market with its international store platform. But it might be just a matter of time before Amazon takes the plunge and opens up shop in New Zealand. Here’s why.
Is Amazon coming to New Zealand?
And when it does, will it revolutionize the shopping experience and hurt New Zealand’s big retail chains?
We answer these questions and more here!
Amazon Could Benefit the New Zealand Economy
While it’s true that there will likely be an economic benefit from Amazon coming to New Zealand, it’s important not to get too excited.
- An increase in online spending is a good thing; however, many of these gains come at a cost.
- As retail jobs are lost and consumers spend more money on low-paying service jobs, there isn’t necessarily a net gain for individuals or communities.
- When considering whether or not you support a move like Amazon coming to your country, take into account both sides of the story.
There is room for everybody in NZ eCommerce
On a per-capita basis, New Zealand’s eCommerce market is still quite small by global standards. they’re at only 10% of USA levels. Even with around 6 million Kiwis regularly shopping online, that’s just two-thirds of every household in NZ buying products online each year. Plus, based on recent trends in tourism from China and Korea, we expect more overseas visitors will discover online shopping.
What does it mean for businesses and shoppers?
Many rumors are flying around about Amazon’s next move in Australia. Speculation is that we could soon see Amazon Marketplace come here, which means anyone will be able to sell their goods and products through a dedicated Australian storefront. Another option being floated is an Amazon Prime type of service for Aussies, which would include free shipping and access to streaming services such as Prime Video and Prime Music. If it sounds like a dream come true for shoppers and businesses alike, that’s because it kind of is…but there are still plenty of issues up in the air.
- (For instance: how long until there’s an expectation that our goods arrive within 24 hours?)
- Will logistics make it difficult for Kiwi stores (especially those selling physical products) to compete on price?
Will small businesses be pushed out by Amazon?
Small businesses are worried that they will be squeezed out of business when Amazon opens its doors in NZ. Small and family-owned companies account for most employment growth over recent years, with new jobs largely created by independent retailers and service providers.
Yes, we should worry about automation
The rise of automation technology is both exciting and frightening. We’re living in a time when machines are quickly becoming smarter than us. If we aren’t careful, we could end up losing our jobs because robots have become cheaper than human labor. It isn’t hard to imagine how it could happen.
- For example, if self-driving cars come into use, millions of people could lose their job as taxi drivers or bus drivers (especially if we design these automated cars to run themselves with little human intervention).
- But there is also a bright side: Automation technology will make it possible for workers who aren’t necessarily highly skilled or educated to find employment much more easily than they can today.
What would success look like for NZ eCommerce businesses?
It’s no secret that eCommerce is exploding in New Zealand and globally, with many consumers preferring online shopping over retail.
- The question we need to ask though is will local eCommerce businesses be able to capitalize on their newfound market share?
If you look at other countries where eCommerce has grown at a rapid rate, you will see a trend of home-grown businesses dominating.
For example, if you take one of Australia’s most popular online retailers – Kogan (think cheap TVs), they are still very much an Australian business.
Could we see something similar happen in NZ?
There are certainly some reasons why we may not but let’s delve deeper into these assumptions and see what could be possible for Kiwi eCommerce growth.
- Let’s start by looking at what makes a successful NZ eCommerce website: Best Sellers & Fast Delivery Speed: As customers already do most of their shopping online, your store must offer them a wide range of products along with quick delivery times so they can get all that they want while staying within budget.
- Customer Feedback/Reviews: One aspect which isn’t talked about enough when it comes to eCommerce websites is how important feedback from your customers is.
- Customer feedback allows potential customers to read unbiased reviews from real people who have ordered from your website before and can make or break whether someone decides to shop with you or not!
Make sure you tap into as much domestic money as possible while also remaining competitive internationally by having decent shipping rates ready.