The global opportunity awaits

NZ Post has been supporting local businesses grow internationally and international businesses grow in New Zealand. Being part of the Universal Postal Union means NZ Post is the trusted delivery partner for business sending parcels to and from New Zealand. 

In this article Jared Handcock, NZ Post’s GM of Export and International Solutions at NZ Post, talks us through the opportunities and challenges of going global and how NZ Post supports local online retailers to grow their customer base beyond New Zealand’s borders.

• 20% of NZ Post customers, based in New Zealand, ship to international markets.
• NZ Post delivered over X million parcels to over 150 countries in 2023, and we expect to see this increase in 2024.
• That’s over X million kilos of product.

The growth of global thinking

“Online shopping is borderless and that means there are people all around the world looking for new, interesting and unique products. New Zealand’s reputation for quality, innovation and sustainability means many of them are looking our way for something different and special,” explains Handcock. He’s particularly excited to see more Kiwi consumer goods going all over the world in the last 18 months, often driven by retailer’s innovative promotions using social media platforms like TikTok and global influencers.

 “Because of the similar language, consumer preferences and lifestyles, Australia, the US and the UK are the key markets for local retailers, especially for popular items like baby clothes, activewear, unique arts and crafts and wellbeing supplies,” observes Handcock. “Shoppers in these markets are looking overseas, not only for bargains, but for quality products that they can’t buy locally.”   

Japan, China, India and the Middle East also have rising levels of interest, especially in natural Kiwi goods like honey, skincare and wellbeing products. And it’s not just consumers buying these products, it’s businesses too.

IPC e-commerce shopper survey 2024

In 2023, 16% of global online shopping was purchased from retailers located in a country different to where the shopper was located. 

Australia


Australia Post’s 2024 Inside Australian Online Shopping eCommerce report, tell us that Australians spent $63.6billion online in 2023. Online makes 16.8% of total retail spending (it’s around 10% in NZ¹) and continues to grow. So not only does this market have more shopping power, they’re more likely to shop online.

The IPC e-Commerce shopper survey 2024 shows that 11% of online shopping by Australians is spent with retailers based overseas.

Handcock continues to see Australia as the easiest opportunity for New Zealand businesses. “Australians still associating our products with natural and higher quality, especially in areas like health, baby and beauty products. And with a $75,000 threshold before Kiwi businesses need to register for GST, there are very few barriers to selling over the ditch.” 

Handcock encourages Kiwi retailers to see Aussie customers the same way they see local inter-island customers. “We are growing our services to Australia, meaning we’re getting products delivered faster than ever before. We fly to Sydney, Melbourne and Brisbane six days a week and to Adelaide and Perth three days a week. Many products are now delivered in the main Australian cities in timeframes not too dissimilar to local deliveries. ”

 
USA  

There’s been increased interest from US shoppers in New Zealand products. Handcock puts this down to the weaker Kiwi dollar but also America’s growing awareness of New Zealand, our values and culture. “With a US$800 threshold before shoppers have to pay tax on their foreign purchases, there’s little standing in the way of Americans’ buying from Kiwi retailers.”

 “Retailers should be aware that shopper preferences and behaviours change from the east to the west coast, and mid-America is different again,” points out Handcock. “Regardless of location, Americans are used to buying online and getting things delivered from companies like Amazon on the same day, so managing their delivery expectations is crucial. ”

NZ Post has a partnership with the US Postal Service, providing nationwide delivery coverage. And with more flights each week, now direct to both LA and New York, and improved sorting capability, and border coordination, at the new Auckland Processing Centre, parcels are getting to US customers faster than ever before. 
 

UK  

The UK has one of the highest rates of online shopping in the world.

The latest IPC e-Commerce shopper survey 2024 shows that in Ireland (which has similar patterns to the wider UK), 20% of online shopping is spent with retailer based overseas.

“British customers look for quality, often buying products like woollen clothes, sheep skins and knitwear. There’s also a healthy demand for Kiwiana, with lollies, biscuits and chocolates being shipped to ex-pat Kiwis”, explains Handcock.

NZ Post has been working closely with Royal Mail, to find ways to make deliveries to the UK, not only faster, but more cost effective and more visible. “We’re already seeing great results from this work and we have even more plans to enhance our UK delivery services.”

Removing barriers for retailer

Beyond the tyranny of distance, Handcock feels that retailers are sometimes hesitant to look overseas due to fears about complex tax and customs requirements. He explains “an increasing number of countries are changing the way they do things, making it easier for overseas retailers to operate in that markets.”  

NZ Post has products and services that help retailers to understand, and take care of, the requirements in each market.” He points retailers to the dedicated ‘customs documentation’ page on the NZ Post website which gives guidance for most global destinations. He also highlights NZ Post’s teams on the ground in Australia, Singapore and China, working through local and regional requirements, and the global postal community who supports NZ Post to deliver to their country.
 

Making it easy for customers

Handcock say “All shoppers have some reservations about buying things from new markets and from retailers they’ve never bought from before.” He encourages Kiwi retailer to make it easy for overseas shoppers to purchase from them and offers the following 4 tips to remove potential barriers:

1. Make sure it’s clear on your website that delivery is from New Zealand and spell out your delivery costs and expected timeframes. Doing so will reduce shopper anxiety and result in less enquiries.
2. Give shoppers the ability to track their parcels all the way to their door.  This gives them peace of mind and reduces fears that their parcel may be lost or delayed.
3. Make your returns policy easy to find. A good returns policy provides some of the reassurance shoppers need to try new retailers, in new markets.
4. Use free or discounted shipping as a way to encourage new shoppers to trial purchasing from you, to reward loyalty, and to encourage higher levels of spending with you.

The world is open to you

“Well done to the thousands of Kiwi retailers who have already grasped the global opportunity. It’s now time for every one else to see the whole world as a potential customer,” concludes Handcock.  “Going global is not as difficult as you may think so talk to us about how to make this massive global opportunity work for you. Do it today, and you just might find the upcoming ‘Peak period’ leading up to Christmas is the best you’ve ever had.”
 

Interested in going global?

Want to know more about growing your revenue by reaching new customers around the world?  We’d love to help you go global.

If you’re already a NZ Post customer, start by reaching out to your NZ Post Relationship manager. They can talk you through our products and services and connect you with the right information and specialists to get going.

If you’re not an existing customer, getting in touch through our website or call us on 09 977 0102. 
 

NZ Post Products and Services

At NZ Post we have a range of products and services to support retailers to send to hundreds of locations around the world. 

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Full details are available on our website.

^{1 NZ Post Market Sentiments Report 2023}