COVID-19 has Changed the Way New Zealanders Shop Online

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In the first quarter of 2022 online shopping in New Zealand saw a significant increase due to the pandemic. Kiwis spent $2.2 billion on purchasing goods online, which was a massive 86% increase compared to the same quarter in the previous year.

With the massive shift to mobile commerce, online shopping has grown more popular even with older shoppers. With more than 50% of New Zealanders making online purchases via mobile phones in 2021, mobile shopping is expected to increase to 61% by 2024.

Covid is gone but the online shopping trend is not going anywhere. The pandemic uncertainty has changed the way people shop forever. All business owners need to keep an eye on New Zealand’s e-commerce market trends to remain competitive.

In this blog post, we will be talking about post-covid e-commerce trends and how this shift to online retail growth affects all online businesses.

New Zealand Post-Covid E-Commerce Trends in 2023

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  • Based on the reports, it seems that online shopping spending in New Zealand initially saw a significant increase due to COVID-19, but has since seen a decline.

  • In the first quarter of 2022, there was a 31% increase in online spending compared to the previous year and an 86% increase compared to the same quarter in 2021. This surge was possibly due to the immediate effects of the pandemic, which forced many consumers to shift to online shopping.

  • However, recent data shows a downward trend in online activity. The first quarter of 2023 saw shoppers spend more than NZ$1.36 billion on physical goods, which was a 22% drop compared to the previous year. Similarly, in December 2022 online spending was $480 million, down 23% from December 2021 and even 7% below 2020.

  • Overall, while the pandemic initially caused a spike in online shopping, spending seems to have decreased recently. This could be due to a variety of factors, including a preference for physical retail stores, the easing of pandemic-related restrictions, or people’s interest to support local businesses.

  • However, the good news for online business owners is that the online shopping trend is here to stay. Therefore, businesses all across New Zealand need to optimise their e-commerce stores to focus on the latest trends.

Top 10 Post-Covid E-Commerce Trends in New Zealand You Must Follow

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As we look towards the future, businesses must acknowledge the changing behaviours brought upon by the pandemic and adopt business models that reflect the new normal.

Following are some post covid NZ e-commerce trends and best practices you should know about before creating, promoting, or optimising your e-commerce store.

1. Showcasing Verified Customer Reviews

One of the most important factors when shopping online is trust. Reviews are by far the most importantt factor to gain the trust of online customers.

Displaying verified customer reviews are an excellent way for businesses to build trust.

People are reluctant to spend money on products they haven’t used before. Verified Customer reviews allow potential customers to make informed decisions before committing to a purchase.

2. Mobile Optimisation

More consumers are using smartphones and tablets when it comes to shopping online. In fact, this trend has been on the rise over the past decade.

Optimising your e-commerce platform for mobile devices could significantly increase your conversion rates.

3. Social Commerce

Social Commerce is on the rise, and brands are adopting different social media platforms to attract their target audience. Instagram and Facebook provide businesses with the option to create a “Shop” tab, which leads customers directly to their e-commerce store.

Kiwis shopping online from local businesses have shown great interest in social commerce, which is why it’s growing with each passing day. Online retailers need to adapt their marketing strategies to include these platforms.

4. Virtual Product Tours and 3D Product Images

In a post-Covid world, businesses have had to rethink their product showcasing strategies. Virtual product tours and 3D product images allow consumers to have a virtually immersive experience.

This trend has been on the rise, especially in the past year, as businesses are struggling to get people through their doors to view their new products.

5. Easy Checkouts

With the rise of online shopping, consumers expect an easy checkout process. The majority of carts are abandoned because of a complicated checkout process.

Businesses need to adopt a one-page checkout process and provide multiple payment options such as Google Pay, Apple Pay, and Stripe.

6. Sustainability

Sustainability is becoming increasingly important to consumers, therefore, brands are adopting green and eco-friendly practices to keep up.

Brands that are transparent about their sustainability practices have a competitive edge and are highly sought after by consumers.

7. Personalising Communication

Personalised communications can make a world of difference in the world of e-commerce. Consumers have grown accustomed to personalised experiences during the Covid period and you need to adopt this key trend if you want to be successful.

Therefore, personalising communication can come in the form of retargeting ads, email campaigns, and personalised social media promotions.

8. Easy Online Returns Process

A complicated returns process will only lead to dissatisfied customers. Consumers expect easy returns processes that don’t require them to jump through hoops.

Providing hassle-free returns will improve customer retention rates.

9. Artificial Intelligence

Artificial intelligence is becoming increasingly popular in the world of e-commerce. AI-powered chatbots are being used to enhance customer service, increase engagement rates, and provide 24/7 online support.

Post-Covid Web Design Practices for E-commerce Stores in New Zealand

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The COVID-19 pandemic has also changed the way businesses interact with the customer and how a business website is designed.

E-commerce businesses should therefore adopt the following web design practices to provide a seamless online shopping experience for all online shoppers.

1. Mobile-First Design

In today’s digital age, mobile devices are the go-to medium for most online shoppers. Therefore, e-commerce stores in New Zealand should prioritise mobile-first design. This creates a user experience that is minimalistic, faster, and easier to navigate than a desktop design.

2. Streamlined Checkout Process

A streamlined checkout process that is intuitive and user-friendly and offers a more efficient and seamless experience for customers is what’s required in this post-covid era.

It’s essential to remember that customers are just a click away from abandoning their shopping carts. To avoid abandoned carts, post-covid e-commerce stores should implement a streamlined checkout process.

3. Interactive Visuals

Visual content is critical in e-commerce web design. The use of interactive visuals can help visitors quickly understand the product and increase the likelihood of a sale.

Using videos and 3D images improves the user experience and saves the customer’s decision time. It’s a powerful tool in your online sales arsenal.

4. Clear Call-to-Action Buttons

Clear call-to-action (CTA) buttons are critical in driving conversions. They guide the users towards the desired outcome and provide them with an easy way to interact with the site. Post-covid more e-commerce stores in New Zealand should focus on large, prominent CTA buttons that are easy to spot.

Make sure to use persuasive and emotive words to motivate users to take the desired action. Above all, ensure that the CTA button blends perfectly with the overall website design aesthetic.

5. Accessibility and Responsiveness

With the rise of mobile users, your website must be accessible and responsive. Accessibility is about ensuring users with disabilities access your website with ease. Whereas, responsiveness involves making sure that your website layout adjusts to different screen sizes, i.e., desktop and mobile. Ensure your website design adheres to the Web Content Accessibility Guidelines (WCAG) to improve accessibility.

Best E-Commerce Web Designer in New Zealand

Are you ready to transform your e-commerce business and take it to the next level? Well, look no further! At DB IT, we understand how crucial a well-designed, user-friendly e-commerce website is for your business. That’s why we focus on creating a seamless shopping experience that keeps your customers coming back for more.

Well, it’s not just about aesthetics. With a deep understanding of SEO and digital marketing strategies. At DB IT, our web designers ensure that your site is not just beautiful, but also highly visible to your target audience on both smartphones and desktop devices.

Contact us today and let’s start designing an online store that truly represents your brand and drives your business forward.

Conclusion

E-commerce dynamics in New Zealand are swiftly evolving in response to pandemic-induced shifts in consumer behaviour. To stay competitive, businesses must remain vigilant and adjust their tactics accordingly.

To leverage contemporary trends, businesses should prioritise:

  • Mobile optimisation for their e-commerce platforms.

  • Personalised customer interactions.

  • Virtual product demonstrations.

  • Efficient checkout procedures.

Enhancing the customer experience can also be achieved through transparency in sustainability practices, diverse checkout options, easy return policies, and the integration of artificial intelligence-powered chatbots.

FAQ’s

Did people buy more online in New Zealand during the Covid pandemic?

Yes, NZ Post General Manager of Business Marketing, Chris Wong said, “Covid-19 lockdown restrictions saw Kiwis spending more online than ever before.”

How big is the New Zealand eCommerce market?

In 2020, the eCommerce sector in New Zealand was valued at $2 billion USD. The largest categories based on sales were food & personal care, shoes, consumer electronics, and household appliances.