It’s the dilemma every expanding business faces: We’re ready to move into another market — but where? What option presents the best fit for our future as a company, with buyers who would be most interested in our products?
In the case of cross-border trade options in New Zealand, three established marketplaces present compelling options for businesses ready to enter cross-border trade and offer products to Kiwis eager to peruse a wider variety of consumer goods.
Why New Zealand?
As a wealthy developed country that was well-positioned to escape the brunt of the coronavirus pandemic, New Zealand’s economy indicates rebounding growth in the next year. Furthermore, the global disruption of retail in 2020 also heightened interest in e-commerce in a population that was already steadily growing its online retail activity. By the conclusion of 2019, online retail spending had increased nearly a full percentage point from 2018 and had accounted for 9.8% of total retail expenditure in New Zealand. The number of online shoppers also grew to reach nearly 50%, and shoppers who regularly shopped online increased their spending by 4% from 2018 to reach approximately $106 per transaction.
In this timely moment, New Zealanders are continuing to explore and adopt e-commerce practices and they retain significant buying power. As the e-commerce industry and related shopping habits mature in this island nation, opportunities will only expand and strengthen for online sellers.
For businesses open to cross-border trade opportunities, marketplaces offer a valid path to access buyers in new markets. In New Zealand in particular, global brands with previous e-commerce experience are favoured for inclusion among marketplaces that look to present as much variety as possible to their visitors, whether they are serious shoppers or casual browsers.
Here, we take a brief look at the top three marketplaces available to cross-border sellers in New Zealand.
Launched in 2010, OnceIt’s membership-based platform showcases high-end fashion and designer goods at discounted prices. Its 650,000+ members, primarily females between 18-65 with disposable income, receive exclusive offers and insider promotions.
Trade Me has the largest customer base with the strongest name recognition. Originally launched as an auction website in 1999, Trade Me has evolved to offer a huge range of products and services, including new and used items, from home goods to auto parts to properties available for sale or rent. It is rapidly achieving its goal to be the site “where Kiwis look first.”
The most recent entrant into New Zealand marketplaces, TheMarket launched in 2019 with a goal to highlight international, local and niche brands in a lifestyle-focused site that brings shoppers a curated experience. Backed by the largest retail group in New Zealand, The Warehouse Group, the site already features more than 4,000 brands and 2 million products, and has a goal to add more than 10,000 brands to its platform.
What else should I consider?
The main goal for every business entering an international marketplace is increasing sales and revenue. However, to best achieve that, selecting the right marketplace is critical.
Among the many factors to consider, businesses weighing their choices will want to evaluate and prioritise what these — and more — criteria represent for them in each marketplace option:
How Do I Get Started?
To get a better idea of the similarities and differences between these marketplaces, we’ve compiled many points of importance for sellers into this tip sheet.
Rithum integrates with OnceIt, Trade Me and TheMarket and supports sellers on each platform upload their products and achieve compliance with its requirements. No matter what option you choose, you can count on a streamlined process to list and manage your products and get them in front of Kiwi shoppers as quickly as possible.
If you’re interested in learning more, please contact us.