Entering the eCommerce market in the current time can be done quite easily with the help of the dropshipping business model. All you have to do is decide the type of dropshipping business you are going to run, or in other words, what kind of products you are going to sell, and then search for the most suited supplier who will take care of your product inventory. Yes, it is that easy. Of course, there are some small arrangements that have to be conducted in between these processes that are more of a technical nature. However, once you complete these tasks you are good to go on an adventure called “running and managing a dropshipping business.”
We have already talked about the dropshipping suppliers in countries such as the UK, Switzerland, the USA, Germany, Italy, and Australia and how to choose one that will suit you the most in your venture. Now, we will cover New Zealand, a country that consists of two islands located in the southwestern Pacific ocean.
First of all, let’s look at some statistics in order to better understand the market movements and then move to list some of the best dropshipping suppliers in New Zealand.
New Zealand’s Population
According to the newest United Nations data, the number of inhabitants of New Zealand is circa 4,9 million as of 2021. The country is ranked in 126th place according to the population index. Although a small country, New Zealand’s dropshipping market is enough saturated so if you want to have an advantage in starting your venture here, you might want to think hard about the niche you are going to choose for your business.
The eCommerce market in New Zealand
According to the latest data, New Zealand is in the 40th place of the global eCommerce market with revenue that amounts to US$3 billion in 2020. The country is ahead of Iran and just once place behind Portugal. Moreover, New Zealand’s eCommerce market has marked an increase of 20% and it contributed to the global growth rate that amounted to 26% in 2020. The market expansion is set to proceed in the next years with a projection that the CAGR (compound annual growth rate) for the period of four years will amount to 7%. Furthermore, an additional indicator of the saturated market in New Zealand is the 61% online penetration rate, which means that 61% of the people have made at least one online purchase in 2020.
New Zealand eCommerce pandemic restrictions
Due to the Covid-19 pandemic, New Zealand introduced stricter rules regarding the eCommerce sector, prohibiting online shopping for non-essential products amid the surge in cases and major lockdowns in the period of March-April 2020. The rules, however, created an increasing trend of ordering items from overseas countries, as international sellers were still permitted to ship their products in this Southern Pacific country.
Although the newly arisen situation faced a backlash from the domestic eCommerce vendors, the international companies started to take advantage and explore the market even more, by offering products that were not provided domestically. As a result, international eCommerce sales have skyrocketed and US merchants have seen a 168% increase in sales volume in this sector only in April 2020. The most demanded products were from the fashion segment or clothing, sportswear, and footwear.
With this in mind, the nation might now come through with a more diversified range of eCommerce companies, as many of the brick-and-mortar shops are starting to transfer their products to online stores. Another great thing is that the government vowed to raise the domestic sales in eCommerce by announcing a $6.4 million investment capital aimed at improving the eCommerce market.
Online buyer penetration
According to Statista, the projections for online buyers for the year 2026 are set to reach 83% of the consumers, which will mark a potential growth compared to the 2016 data which shows that around 66% of the people performed shopping online.
New Zealand’s internet usage
The latest statistics display that New Zealand has a very high internet penetration rate, following some of the global trends of internet usage. In fact, about 94% of the population in this southern Pacific state were actively using the internet in 2021, a share that increased compared to the previous year.
Popular categories in New Zealand’s eCommerce segment
According to eCommerceDB, the largest market segment in New Zealand is considered to be Fashion with 25% of the market’s revenue. The second place is reserved for the Food & Personal Care segment which amounts to 24% of the revenue, followed by Toys, Hobby & DIY segment with 22%. The last on the list is Electronics & Media and Furniture & Appliances segments with 16% and 14% of the market’s revenue, respectively.
Popular payment methods in the eCommerce segment in New Zealand
A J.P. Morgan 2020 E-Commerce Report says that the primary method of payment for New Zealanders in online shopping is the card. This payment method accounts for 55% of the payments, but the market share it holds is projected to shrink to 46% by 2022. Although the bank account penetration is significantly high amounting to 99,2% among the 15-year olds, the New Zealanders hold a small number of cards or 0.43 debit cards per capita and 0.58 credit cards per capita. However, due to the global pandemic, the card segment could increase as the government is focused on promoting contactless payments and discouraging any form of physical payment.
Bank transfers are also on the rise in particular with the “buy now, pay later” services which are frequently offered by some payment providers. In fact, this payment method has marked a great success on the market in New Zealand, one part due to the aggressive and well-placed marketing campaigns, and the other part because of younger consumers who are purchasing items from the Fashion segment. Overall, this method was used by 25% of the online buyers in the last year. The most famous services in this field are Laybuy, Afterpay, and Oxipay.
The last piece of the pie is reserved for the digital wallets who take 17% of the transaction made online. Here, the most used services and brands are PayPal and Visa Checkout.
So long we have covered the financial movements and various data from the eCommerce market in New Zealand. Now let’s take a look at some steps needed to begin with your dropshipping store.
Steps to begin with your dropshipping store
Find the right products to dropship
In order to begin the process of planning your business journey with the dropshipping model, you need to make thorough research that will help you along the way. From assessing which products have the best value to encountering the most profitable
Conduct a product research
You can use tools such as Google Trends in order to determine what kind of items are in high demand and pick up an idea for tailoring your web store. In fact, this free tool is all you need to get an initial glimpse of the market trends and behaviors.
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Selecting a niche
The next thing you need to do is select your niche. This step is important in order to decide on whether you want to cover a wider market audience or narrow down your consumers and attract a specific group with carefully selected products. Of course, be careful to select a niche that you are passionate about or at least have sufficient knowledge to assess each aspect of it. For example, New Zealand’s largest eCommerce market piece belongs to the Fashion segment with 25% as we mentioned above in this article, so it might be a clever idea to consider this niche as a potential business idea.
Perform a competitor’s audit
Finally, in order to find out more about the current niche, you need to look deeper into the already established businesses. Detailed research of the competitors’ scene is particularly important because it can give you a nice overview of certain market trends. In the end, it is nice to have a hold of information on whether you can match or even surpass the competitor’s prices while still earning a reasonable amount of profit.
Best dropshipping suppliers in New Zealand
Now that you are all set in terms of technical aspects, the last thing you need to do is once again research-related and covers the most significant part of the essence of every dropshipping business, and that is deciding who will supply the inventory of your store. The search for the best dropshipping supplier in New Zealand might end with this thorough list of suppliers that will alleviate your quest.
BrandsGateway
The top place on this guide of dropshipping suppliers in New Zealand is BrandsGateway. The company offers a very unique set of luxury branded products for both women and men. In fact, this supplier offers over 120 luxury brands from all around the globe, and a very easy incorporation process in any online store, which ranks BrandsGateway at the highest place among all the suppliers involved in the fashion industry. Your web store can include unique brand names such as Cavalli, Dolce & Gabbana, Versace, Armani, and many others.
As for the delivery times, BrandsGateway provides a time window for dispatch of 24-48 hours, and you can additionally choose from the different shipping methods such as FedEx, DHL, and UPS. Therefore, if you choose to team up with BrandsGateway, be sure that your customers based in New Zealand will receive their products quickly and securely.
Another advantage that BrandsGateway brings to the table is their 14-day return policy that brings the process a sense of security that the products can be returned in a fair amount of time once they reach the end customer.
At last, a margin of up to 250% on every order is a real trait with BrandsGateway, but you can also get the products for a discounted prices that can go up to 90%. Therefore, BrandsGateway is the perfect supplier for you if you decide to offer a more distinctive web store with an inventory consisted of luxury branded items that will surely catch the attention of fashion aficionados.
Factory Fast
Factory Fast is a dropshipping supplier that offers a wide range of products from different niches. You can choose from categories such as DIY & Renovation, Furniture, Games & Hobbies, Home & Lifestyle, Outdoor & Leisure, Sports & Fitness as well as many others that offer quality products and fair prices. Due to the fact that they are not a middleman company but cooperate directly with manufacturers, they can offer the finest products while passing on the savings to you.
National Products Fulfillment
Next on the list of dropshipping suppliers in New Zealand is the company NP Fulfillment. Although based in Australia, this company offers a comprehensive and dependable dropshipping service with warehouses in Sydney, Melbourne, and Perth where they can safely store your inventory products until an order has been made. After your client pays for a product, and NP Fulfillment receives your order, their advanced management system will allow for quick packing of your order after which it is dispatched for shipping. Lastly, every product is packed so as to ensure that your store’s brand will be easily spotted by the end consumer while receiving the ordered item.
DearJane Medical (DJM)
DearJane Medical is a dropshipping supplier for medical, aged care, health, and allied care products. It offers dropshipping services to businesses that have their own web stores or are using some of the platforms such as Amazon, eBay, Etsy, Trademe, and many more. Furthermore, the profit margin that DearJane Medical offers amounts to 20% on average which is pretty fair. Another thing is that their shipping is performed between 1-5 business days. However, if the products that are ordered are bigger, an additional time is needed due to inspections for defects, customs preparations, careful packaging, and, at last, special cargo shipping.
Dropshipzone
Next on the list of dropshipping suppliers in New Zealand is Dropshipzone. This is a dedicated dropshipping supplier that offers a very wide range of quality products. In fact, they provide wholesale and dropshipping services to bolster your business. Their set of comprehensive services might help you set up your web store. According to their website, they offer up to 80% discounts on some products which can mean much bigger profits for your business. In addition, their website is built to serve different types of retailers and can easily adapt to any given store architecture.
To sum up
Building a dropshipping business from scratch can be quite the journey for every entrepreneur out there in search of the right model for doing business. In fact, a successful dropshipping business would mean a crafty preparation process and resourceful planning in order to guarantee a seamless customer experience. Therefore, we compiled this entire guide to dropshipping along with the list of dropshipping suppliers in New Zealand in order to bring you one step closer to your desired web store. So, if you decided that dropshipping is the most suitable model for your online venture, now the only thing left is to start the process of selecting your dropshipping supplier and then emerge on the eCommerce market.
