NZ Post report: Almost one in four dollars of total retail spend is now online, fuelled by more transactions, bigger baskets and strong domestic spending

NZ Post’s latest eCommerce Market Sentiments Report, now in its ninth year, highlights changing online shopping attitudes and behaviours, and the importance of what happens after the customer hits the ‘pay now’ button.

Kiwi shoppers made nearly six million more online transactions in 2025 than in 2024, a six per cent increase that outstrips the two per cent increase in traditional instore spending. Online transaction growth was similar across domestic and international retailers but spending with New Zealand based businesses grew at more than double the rate of international online spending. Over a quarter of shoppers cited NZ-based store, delivery visibility, and easy returns as key reasons for choosing a specific retailer.

While offshore retailers continued to grow transaction volumes, New Zealand retailers achieved larger average order values – over $50 higher per basket – and accounted for 79.6 per cent of all online spending. The average online transaction value grew four per cent to $120, with domestic basket sizes up five per cent and international basket sizes down one per cent.

The reasons people cite for international shopping have intensified around price and value, together with product choice. Domestic spending is being driven by faster shipping, local service, easy returns, the desire to support local businesses, and the ability to visit a local store.

NZ Post General Manager Business Chris Wong says that while searching for value is now the starting point for almost every purchase decision, shoppers are increasingly looking for signs of legitimacy and reassurance before hitting ‘pay now’.

“With cost pressures, international competition, scams and fast emerging AI tools all altering the online landscape, retailer trust and transparency have emerged as important factors in Kiwi shoppers’ buying decisions. More than half of shoppers search for independent reviews, external ratings, or real shopper feedback before purchasing,” Wong said. “They also look for other signs of a legitimate business including a physical address, social media presence and the delivery partner.

“For retailers, this presents an opportunity to drive customer loyalty and growth by combining machine efficiency with human authenticity and a stand-out delivery experience. Shoppers are leveraging generative AI to search, compare and decide where to buy. They’re also moving seamlessly between online and in-store experiences, using each for what it does best. Retailers who are visible to AI, easy to find and trust, offer quality, and can reliably deliver for their customers will be well-positioned for growth when consumer confidence returns,” said Wong.