Is Amazon Coming to New Zealand In 2023? What Kiwi Sellers Need to Know

If you sell products online in New Zealand, you may have heard rumors that Amazon is finally opening up services for Kiwi customers. As an ecommerce seller, this likely raises both excitement and apprehension.

The main news: Amazon Australia now ships products to New Zealand, providing much faster delivery times and lower costs compared to ordering from Amazon US. This opens up big opportunities, but also means more competition.

In this comprehensive guide, I‘ll share an in-depth look at Amazon‘s current and upcoming presence in New Zealand as an experienced Amazon seller. You‘ll learn about:

• Where Amazon NZ orders will ship from
• Hiring plans for local warehouses
• Shipping times and costs to expect
• How to buy and sell on Amazon from NZ
• Availability of Prime, Audible, Video, Kindle, Ads
• Tips for Kiwi sellers expanding to Amazon Australia
• And more…

Let‘s dive in!

Will Amazon have local warehouses and operations in New Zealand?

This is the big question every seller wants to know.

At this time, Amazon has not announced plans to open fulfillment centers or other facilities directly in New Zealand. Orders are currently fulfilled from their Australia warehouses.

However, Amazon is hiring for a number of New Zealand-based roles to support their expansion in your market:

The fact they are building up an NZ-based team signals Amazon‘s serious interest in your market. I would expect local fulfillment centers to follow in the next 1-2 years if these hiring efforts pay off.

How long does Amazon shipping take for New Zealand orders?

One major benefit of Amazon coming to NZ is much faster shipping, even if orders come from Australia right now. Here are the delivery times you can expect:

• Non-Prime members: 3-5 business days
• Prime members: 2-4 business days

These are big improvements over the previous 7-10 days from Amazon US! Once there is local NZ stock and fulfillment, delivery times should reduce even further for Kiwi customers.

Returns are also easy with prepaid labels and pickup options through DHL. This promotes purchasing by reducing the friction and risk for customers.

What are Amazon‘s shipping rates and costs to NZ?

Australian GST tax now applies for goods imported by Amazon, but the shipping rates themselves are very reasonable:

• Standard delivery: A$2.99
• Expedited delivery (2 days): A$6.99

Here‘s a look at the Shipping & Handling fee chart:

Rates are even lower for Prime members at A$0 for expedited delivery. Overall, these are great deals compared to regular international shipping costs from the US or UK.

Lower delivery costs allow you as the seller to offer more competitive pricing while still maintaining decent margins. But it also means more sellers can enter your market. We‘ll discuss strategies to compete in the tips section below.

Can Kiwis still buy from Amazon US or other sites?

Even with the Australia expansion, the full Amazon Global Store is still available to New Zealanders. This grants access to Amazon websites in the US, Canada, UK, EU, Japan and more.

However, shipping and import fees from Global stores remain very high. You‘ll pay $13-40 for shipping alone, plus $8-12/kg in import fees. And delivery takes over a week in most cases.

So shopping on Amazon Australia will be the much cheaper and faster option that draws in most Kiwi customers. But the Global stores allow access to a broader selection of products that may not be available locally.

As a seller, you can also use Global stores to source and import products to then fulfill orders locally from Australia. This "arbitrage" model takes more work but can give you an edge accessing global selection. Just beware of the fees and minimums.

What Amazon services are available for New Zealanders?

Beyond just shopping, Amazon has launched a suite of services in Australia that are now accessible to Kiwis too:

• Prime: Free expedited delivery and other benefits for A$6.99/month
• Prime Video: Netflix competitor with original content for A$6.99/month
• Audible: Audiobooks and podcasts with A$16.45/month membership
• Kindle: Ebooks and the Kindle e-reader device
• Kindle Direct Publishing: Paid self-publishing for Kiwi authors
• Amazon Ads: Pay-per-click and display advertising network
• Associates Program: Influencer affiliate marketing program

This expands Amazon‘s reach as an all-encompassing "everything store" and ecosystem in New Zealand beyond just ecommerce.

Prime membership will likely see heavy adoption thanks to the free expedited delivery perk. For you as a seller, Prime badge products often gain increased visibility in search/browse. So I recommend enrolling eligible products.

Kindle Direct Publishing opens new doors for Kiwi authors to reach broader audiences and earn royalties up to 70%. And Amazon Ads are a promising new channel compared to low competition from Google and Facebook in NZ.

Overall, these services introduce many new income opportunities for NZ-based entrepreneurs and content creators leveraging Amazon‘s platforms.

Should I sell my products on Amazon Australia?

Expanding your ecommerce business to Amazon Australia can be an attractive growth move to tap into their huge base of Kiwi buyers.

But it also comes with new costs, efforts, and risks you need to carefully evaluate. Here are my top tips as an experienced seller for succeeding in Amazon NZ:

Pros:

• Reach millions of new customers in NZ
• Increased trust buying from a major brand like Amazon
• Promotions like Prime Day boost sales
• Fulfillment and customer service handled by Amazon

Cons:

• Amazon fees cut around 30% of your profits
• Fierce competition on the marketplace
• Need to adapt brand presence to Amazon format
• Could undermine your own ecommerce site
• Risk of bad reviews tanking listings

Keys To Success:

• Carefully select eligible products that will sell well on Amazon NZ based on ranking and demand. Test with a few listings first.
• Optimize titles, descriptions, images and backend keywords for the NZ audience. This improves findability.
• Promote products through Amazon Marketing Services like Sponsored Products.
• Closely monitor changes in rankings, demand, stockouts. Rapidly test and iterate.
• Use multichannel fulfillment to hold stock in NZ and Australia to improve shipping times.
• Analyze volume and profit trends to decide whether to expand or cut losses.

Following this selective, test-driven approach helps mitigate the risks of jumping into Amazon Australia unprepared. I‘ve seen many sellers get burned trying to brute force it without the right strategy.

But with the right products and optimizations, Amazon can take your ecommerce business to the next level through access to the lucrative NZ market!

Should I be worried or excited about Amazon coming to NZ?

If you‘re an established online seller in New Zealand, Amazon‘s arrival may seem like a big threat. But it also creates major new opportunities if you adapt.

Here‘s my take as an industry expert:

You should be worried about:

• Increased competition from international sellers flooding the NZ market.
• Losing sales and market share to Amazon‘s massive brand and reach.
• Being forced into selling on Amazon due to where the buyers are.
• Giving up control over pricing, branding, customer experience.

You should be excited about:

• Tapping into Amazon‘s built-in audience of Kiwi buyers.
• Leveraging their world-class logistics and fulfillment.
• Accessing promotional events like Prime Day for big sales.
• Using Amazon‘s advertising platform to acquire customers.
• Reaching growth targets more quickly by expanding to Australia.

The retailers who will thrive are ones who find the optimal balance leveraging Amazon while retaining control over their core brand and assets.

View them as a powerful potential partner rather than a competitive threat. With the right prep and strategy, the opportunities outweigh the risks.

The future looks bright for Amazon NZ!

I hope this overview gives Kiwi retailers and merchants valuable insights into Amazon‘s plans for the New Zealand market.

The convenience, selection and services they‘ll provide should be a big win overall for customers here. As sellers, we face more competition but also huge new revenue potential if we play it right.

I‘m excited to see Amazon grow as a channel partner to diversify sales and incrementally expand our business. With proper precautions, the benefits outweigh the risks.

Feel free to reach out if you have any other questions! I‘m always happy to chat strategy and compare notes with fellow Kiwi sellers.

All the best,
William Decker
Amazon Seller & Ecommerce Expert