A look at the current New Zealand eRetail market
The eCommerce market in New Zealand is developing and growing steadily, year-to-year. From a report published by the Bank of New Zealand, we find out that the total online eCommerce spending in January 2017 was 16% higher compared to January last year.
Furthermore, according to the same report, revenue generated from online shopping is around $3.8 billion, excluding GST (15%).
What do New Zealanders buy online?
In January 2017, the most purchased products were groceries & liquor (23%), closely followed by electronic goods and clothing & footwear.
From a total population of 4.4 million people, about 85%, or 3.8 million, are connected to the Internet. 2 million New Zealanders shop online, which amounts to a shopping penetration rate of over 55%.
While New Zealand’s eCommerce market isn’t huge, it’s most definitely promising. New Zealanders are open to online shopping and rely on it more and more.
Each year, they buy roughly 9% more items than they did the previous twelve months. They also spend about 20% more each year.
Although Google Shopping's availability is great news for retailers, it might pose some serious challenges to some of them, due to the perceived complexity of setting up and running Google Shopping Campaigns.
How to get started with Google Shopping in New Zealand?
In order to get started with Google Shopping in New Zealand there are some required and recommended steps.
Required steps to get started with Google Shopping:
- Set up an account with Google Merchant Center.
- Create a data feed with your catalogue of products according to Google's requirements.
- Upload your products to Google Merchant Center: manually, via FTP or URL.
- Update your data feed regularly so that any change in your online store is reflected in the Google feed.
- Fix the errors in the feed that Google alerts you about.
Although, not requiered it is highly recommended that you go the extra mile and put more effort into optimizing the product feed and analyzing the performance of the products.
An optimized feed has numerous benefits, such as:
- fewer dissaproved products
- more clicks and a better performance of the listing ads
- better on-site conversion
- increased ROI
There are many areas that you could look into when optimizing the data feed. We recommend you start with the following ones:
- Exclude products from the feed that are out of stock, not in season or simply don't have a good gross margin.
- Match your product types to the best category in Google's Taxonomy.
- Improve your product titles, based on the type of products that you are selling. See below the best practices for title structure based on your vertical.
The New Zealand eCommerce market will most likely continue to increase, as consumers shop online for convenience, which includes the ability to compare a much broader range of products in a short period of time.
If you have questions get in touch with us for a feed management consultation. We can help you get your feed ready and optimized in no time for Google Shopping in New Zealand.