Consumers Flock to Offshore Retailers But Lack Protection

Media release: 27 November 2014

Consumers Flock to Offshore Retailers But May Lack Protection

Retail NZ says that a massive 28% year on year increase in spending at overseas online shops shows that the New Zealand retail sector is operating in a highly competitive market, but that consumers may be missing out on some of the added benefits of buying locally.

“We’re not surprised to see a big increase in spending by Kiwis on offshore websites reported in today’s BNZ Marketview report,” Retail NZ Chief Executive Mark Johnston said today. “We are operating in a global borderless shopping environment, and New Zealand retailers are trading in what’s probably the most competitive market we’ve ever seen. This is not made easier by a loophole that means that while New Zealand retailers are forced to charge GST to all of their local customers, those consumers buying low-value goods from offshore retailers are effectively exempt from the tax.

Mr Johnston warned that while consumers are understandably keen to shop around for the best deal, there are some real advantages to buying locally. “When you buy from a New Zealand shop or online store, not only are you supporting local jobs, but the goods you buy are covered by New Zealand consumer law. It’s worth noting that when we buy from an offshore websites, we may not have the same consumer protections as we do here in New Zealand and may not be able to return goods that aren’t up to standard”.

ENDS

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