The arrival of Amazon in New Zealand’s retail market

Amazon’s impending arrival in New Zealand is drawing significant attention from Kiwi retailers, especially given the impact observed during their rollout in Australia. As this eCommerce giant prepares to enter the New Zealand market, it’s crucial to understand the potential ramifications for the local retail landscape.

Australia’s experience with Amazon serves as a valuable lesson for New Zealand. When Amazon launched in Australia in 2017, it promised a revolution in retail with its vast product range, competitive pricing, and efficient delivery systems. However, the reality for many local businesses has been a mixed bag. Amazon’s entry led to intense price competition, prompting many Australian retailers to adjust prices and margins to stay competitive. The convenience and scale of Amazon’s offerings also influenced consumers’ shopping habits, shifting preferences towards online shopping. Already, over 20% of 18-24 year olds start their shopping journey on Amazon.

Industry experts in New Zealand anticipate similar changes. The main concern is whether local businesses can match Amazon’s pricing strategies and delivery efficiencies. New Zealand’s retail market, characterised by its smaller scale and geographical isolation, may find it challenging to compete with Amazon’s cost advantages and logistical capabilities.

To navigate these changes, local retailers can benefit from leveraging the power of Shippit. Shippit offers a comprehensive commerce delivery platform that can significantly enhance the delivery capabilities of New Zealand retailers through:

• Streamlined delivery operations: Shippit integrates with over 100 carriers, including same day and on-demand options, allowing retailers to optimise their delivery processes. This means faster, more reliable shipping options that can match Amazon’s efficiency, and meet customer expectations.
• Cost-effective solutions: By aggregating shipping volumes, Shippit can negotiate competitive rates with carriers, providing cost savings that can be passed on to customers. This helps local businesses maintain competitive pricing without sacrificing margins.
• Enhanced customer experience: Shippit offers real-time tracking and proactive delivery notifications, enhancing the overall customer experience. By providing transparency and reliability, New Zealand retailers can build stronger relationships with their customers.
• Powerful reporting and insights: Shippit provides customers with a 360° view of their shipping and delivery operations, empowering customers with unprecedented visibility and control as they seek to optimise costs and efficiency amidst rising competition and economic pressures.

By partnering with Shippit, New Zealand retailers can level the playing field and ensure they remain competitive. Shippit’s capabilities in streamlining operations, reducing costs, and enhancing customer satisfaction provide a robust strategy for adapting to Amazon’s entry.

While Amazon’s entry into New Zealand presents opportunities for consumers, it also poses challenges for the local retail industry. By learning from Australia’s experience, leveraging the power of Shippit’s platform and carrier network, and proactively adapting, New Zealand retailers can navigate this evolving landscape and continue to thrive amidst global competition.