Online GST concerns quelled by new study

Many local retailers have been reeling in anticipation of the upcoming implementation of GST to online shopping. However, it seems these fears can be quelled, as new research from Canstar Blue indicates that there will be little consumer pullback as a result of the tax.

The research conducted by Canstar Blue saw respondents expressing that the implementation of GST would have little effect on their online shopping habits. While price is a concern for consumers, convenience is the primary driver for online shopping and trumps the former interest. 70 percent of Canstar Blue’s responding consumers listed convenience as their primary reason for partaking in online shopping.

Jose George, Canstar Blue’s general manager, responded to this new data to further put New Zealand businesses at ease. “[This research] puts New Zealand-based online retailers at a considerable advantage,” declared George. “While overseas sites will continue to be popular due to the huge range they can offer, New Zealand sites can compete strongly on speed and service, which our research shows customers value the most.”

GST for online purchases will become effective as of October 2019.