7 crucial areas Aussie retailers should consider before exporting to New Zealand

Exporting to New Zealand can be a lucrative opportunity for Australian retailers due to the close geographical proximity and strong trade relationship between the two countries. Australia and New Zealand have forged a robust economic partnership, fostering a unique bond between the two nations. For Australian retailers seeking to expand their horizons and tap into the dynamic New Zealand market, exporting goods across the Tasman Sea offers a golden opportunity.

However, to navigate the process successfully and make a mark in the Kiwi consumer landscape, it is vital for Aussie retailers to be well-informed about the key considerations when exporting to New Zealand.

In this article, I delve into the essential aspects that Australian retailers need to know before venturing into the New Zealand market. From assessing the Return on Investment (ROI) to streamlining customs clearance and delivery for customers, we equip retailers with the necessary knowledge to establish a thriving presence in this neighbouring market.

1. Return on investment (ROI)

Before expanding into the New Zealand market, it is essential to conduct a thorough cost-benefit analysis. Assess the potential sales volume, market demand, and pricing strategies to determine if the investment is likely to yield a satisfactory ROI. Consider factors such as shipping costs, customs duties, and taxes when calculating your profitability.

2. Customs and streamlined delivery

Customs clearance and delivery efficiency play a vital role in customer satisfaction and overall success. The streamlined delivery for customers is crucial to maintain a competitive edge in the New Zealand market. To ensure smooth customs clearance, it's essential to understand the regulations and requirements for importing goods into New Zealand. Utilising reputable shipping providers like AMS, which have experience and knowledge of the local market, can help expedite the process.

3. Value threshold for NZ

Keep in mind that New Zealand imposes a value threshold on goods imported by consumers. Currently, the threshold is $1000 NZD. For goods valued below this threshold, customers won't have to pay customs duties or taxes, making it more attractive for them to buy from Australian retailers. However, for goods exceeding this value, customs duties and taxes will apply as well as a formal entry, potentially impacting the attractiveness of your products to New Zealand consumers. Anything valued between $400.00 NZ and up to $1000.00 will also require a simplified entry with NZ Customs.

4. Market understanding and competition

Conduct market research to understand the preferences, buying behaviour, and competition in the New Zealand market. Tailor your offerings and marketing strategies to cater to the local audience. Consider the uniqueness of your products and how they differentiate from local competitors to stand out in the market.

5. Shipping and delivery timeframes

Shipping and delivery times can vary significantly between different shipping providers. Providing efficient and reliable delivery options can be a competitive advantage. If your selected delivery partner’s delivery times are relatively longer compared to a competitor, it might be worth considering a shift to a more efficient delivery partner to meet customer expectations.

6. Customer support and returns

Ensure that you have a robust customer support system in place to handle queries and resolve issues promptly. It’s also important to establish a clear and transparent returns policy to provide customers with confidence in their purchase.

7. Compliance and regulations

Comply with all relevant export regulations and requirements set forth by both Australian and New Zealand authorities. This includes labelling, product safety standards, and any other regulatory obligations.

By familiarising yourself with these essential aspects, you can embark on their export journey to New Zealand with confidence, capitalising on the promising opportunities that this strong trans-Tasman bond presents. As the retail landscape expands across borders, the potential for growth and success awaits those who seize the prospects offered by this thriving market.

Looking to ship parcels to New Zealand or improve your existing service to this region? AMS eGroup can streamline your parcel delivery and meet customer expectations.

Contact us here? https://www.amsegroup.com.au/contact/