Turning Clicks into Conversions: What the 2025 eCommerce Sentiment Report Means for NZ Retailers

The insights in this article are drawn from the 2025 eCommerce Sentiment Report by NZ Post, one of the most comprehensive overviews of current shopper behaviour in New Zealand. 

The report makes it clear: while consumer spending habits have shifted in response to economic pressure, there is a significant opportunity for retailers willing to adapt. Kiwi shoppers are now more value-conscious than ever, and those who fail to meet this evolving definition of value risk losing customers to both local competitors and rapidly growing offshore platforms like Temu.

At Connect the Dots, we’ve reviewed the full report and identified the key insights that matter most for merchant planning. Below, we outline where to focus your efforts to lift conversions, reduce cart abandonment, and build long-term customer value.

1. Free Shipping Still Drives Conversions

Free delivery is the top factor influencing purchase decisions.
Shoppers not only expect free delivery – they actively seek it out. While it’s not always feasible for retailers, smart use of thresholds or loyalty incentives can protect margins while satisfying this expectation.

• 91% of shoppers search for retailers offering free shipping.
• 81% say it influences where they shop.
• 80% are likely to spend 10% more to qualify for it.
• Loyalty programmes offering free shipping increase repeat purchase rates.
  

2. Delivery Costs Are Causing Cart Abandonment

Unexpected delivery fees and slow shipping times are major deal breakers.
After investing in getting a customer to the checkout, hidden costs or unclear timelines are often what drive them away. Transparency and convenience are essential to reducing abandonment.

• 68% of shoppers abandon carts due to high shipping fees.
• 59% drop out when costs aren’t shown early.
• 30% cancel purchases due to long delivery estimates.
• 57% exit if order tracking is not provided.
  

3. Small Delivery Fees Are Acceptable – To a Point

Charging modest fees is viable, but there’s a clear ceiling.
Customers are price sensitive but pragmatic. Fees under $5 are tolerated across most cart sizes and sectors – beyond that, drop-off rates increase significantly.

• $2.50 fee = ~90% completion rate.
• $5.00 fee = ~85% completion rate.
• $7.50+ = noticeable drop, especially in low-value carts.
• Round pricing (e.g., $5 vs. $4.99) makes no difference to shoppers.
  

4. Shoppers Will Pay More for Faster Delivery

Speed isn’t always essential, but when needed, it’s worth paying for.
Many shoppers prefer standard delivery but want options when urgency matters. Retailers can monetise faster fulfilment without hurting conversions.

• 34% of customers would pay more for faster delivery.
• 57% complete purchases with a $9.99 fee for 2–3 day shipping.
• 39% accept a $14.99 same-day fee for urgent needs.
• Younger shoppers, and male shoppers are most likely to pay for delivery speed.
  

5. Returns, Tracking, and Transparency Are Non-Negotiable

Customers expect a seamless, low-risk post-purchase experience.
From clear return policies to upfront shipping information, a lack of clarity or flexibility can quickly undermine buyer trust.

• 57% of prospective buyers abandon their cart if no free returns are available.
• 77% leave if promo codes fail.
• 66% exit if their preferred payment method is missing.
• 76% expect accurate stock visibility during the shopping experience.
  

6. Value Perception Is Evolving

Shoppers now define value in broader terms.
While discounts remain important, consumers are equally motivated by quality, convenience, and long-term benefits. Retailers must align offers accordingly.

• 63% of shoppers look for discounts or specials.
• 24% choose higher-quality items for durability.
• 22% value free delivery or bulk-buy savings.
• 23% are motivated by loyalty rewards.
  

7. Frequent Shoppers Set the Standard

Top-tier online shoppers have distinct expectations and high returns if retained.
This group purchases frequently and spends significantly more across all categories. Meeting their expectations can yield substantial long-term value.

• Shop 16+ times and spend ~$680 per month.
• 93% seek out free delivery; 70% will join loyalty schemes to get it.
• Expect stock accuracy, fast fulfilment, multiple payment options, and tracking.
• Strongly dislike delayed delivery cost visibility and split shipments.
  

Strategic Recommendations for Merchants

Based on the key findings from the 2025 Market Sentiments Report, here are seven targeted actions retailers can take to align with shopper expectations and strengthen commercial performance:

1. Use Free Delivery Strategically

Position free shipping as a reward, not a default.

• Set free shipping thresholds above your current average order value to lift basket size.
• Introduce free delivery as part of a loyalty programme or time-limited promotions.
• Test category-specific thresholds depending on margin and product size.
• Actively advertise your free delivery threshold at multiple points across the site: banners, product pages, mini-cart and cart.
  

2. Be Transparent with Delivery Costs and Timelines

Avoid last-minute surprises that trigger cart abandonment.

• Show delivery fees and estimated timeframes early in the buyer journey.
• Use product pages or the cart summary to display real-time costs.
• If you offer flat-rate shipping, advertise it clearly site-wide.
  

3. Offer Tiered Delivery Options

Capture both value-seekers and urgent buyers.

• Maintain a standard delivery offering with modest or no fees.
• Add express and same-day options with premium pricing.
• Promote speed upgrades during checkout for time-sensitive categories.
  

4. Simplify Returns and Build Confidence

Returns are part of the experience, not an afterthought.

• Make your returns policy clear and visible across the site.
• Where possible, offer free or low-cost returns, especially for higher-value items.
• Include tracking, photo and/or signature on delivery for added reassurance.
  

5. Leverage Quality and Local Advantages

Give shoppers a reason to stay loyal to NZ-based retailers.

• Highlight product quality, NZ-made credentials, and sustainable practices.
• Reinforce the benefits of faster local delivery and easier returns.
• Educate customers on the long-term value of higher quality purchases.
  

6. Tailor Promotions to Value-Conscious Shoppers

Use promotions to drive behaviour, not just discounts.

• Run offers that reward frequency, bundle purchases, or introduce new product ranges.
• Emphasise “value over time” messaging for durable or premium categories.
• Use loyalty schemes to provide additional value without cutting into margin.
  

7. Design for Your Best Customers

Build infrastructure around the needs of frequent and high-value shoppers.

• Ensure seamless UX with accurate stock, fast processing, and responsive service.
• Avoid split deliveries unless requested.
• Provide multiple payment options including BNPL, Apple/Google Pay, and PayPal.
  

Implementing these recommendations will not only improve conversion and retention—it will also position your business for scalable growth in a market where value, trust, and convenience define success.

Don’t Forget – Delivery is a Strategy

The report shows delivery is no longer just a logistics function – it’s a strategic advantage. Done well, it builds trust, increases basket size, drives loyalty, and lifts conversions. Merchants who align their delivery models with customer preferences, particularly around free shipping, faster fulfilment, and transparent returns, will be better positioned to win in 2025.

At Connect the Dots, we help growth-focused retailers turn insights into action. Whether you need to optimise your customer experience, lift your conversion rates, or develop a winning loyalty and delivery strategy, we’re here to support your next move.

Ready to take action?

Book a free consultation with our team today and let’s explore how we can help you apply these insights in your business.