New Zealand differentiates between business-to-business and business-to-consumer in "conventional" terms. However, they often refer to B2B and B2C under the umbrella of e-commerce or e-trading.
While e-commerce definitely exists in New Zealand, there are virtually no businesses with major revenues stemming from internet sales. Additionally, there are no businesses in New Zealand who are solely internet-based.
STATISTICS
"A survey was jointly commissioned from AC Nielsen by the Inland Revenue Department and the Ministry of Economic Development to provide insight into the level, value, growth and extent of e-commerce conducted by New Zealand businesses. It was targeted at businesses with commercial websites and included 800 respondents. Although commercially oriented sites were targeted, 50% of those surveyed currently are selling less than $10,000 per annum over the Internet. Overall, Internet sales are a small proportion of total sales volume for most e-traders. Despite the relatively small volumes for most e-traders, Internet trading is relatively profitable (50% expect to make a profit in the next 12 months from Internet trading) and expected to grow significantly." 22 Market segmentation revealed three segments, which are differentiated on the basis of their level of involvement with the Internet. Figure 1 offers clickable links for additional information regarding each segment.
Figure 1. Participation in Ecommerce
E-TRADERS
Figure 2 shows the main categories of goods and services sold or marketed on the Internet. The top two are retail/wholesale goods (34%) and business services (29%). 22
Figure 2. Profile of E-Traders
"E-traders most likely to report a profit are from the following sectors:
• s Provide Internet business services (50%) and hospitality services (55%)• s Businesses with Internet sales of $10,001 per annum or more (60%)• s Businesses with 50% or more of Internet customers outside New Zealand (53%)• s Businesses with company sales of $5 million to $10 million a year (53%).
Businesses report selling via the Internet to both consumers (71%) and other businesses (61%), while Government agencies are mentioned much less frequently (20%). Sales volumes and values are at similar levels as the chart below shows. Consumers currently make up the greatest volume and value of Internet sales, followed by businesses. E-traders report Government agencies make up only 2% of their main volume or value." 22
Figure 3. Type of Customers
PAYMENT TECHNOLOGIES
The most common payment methods for Internet sales are on account (44%) and by credit card (41%). Other methods of payment mentioned by less than 5% or respondents each were: telegraphic transfer, cash or COD, checks, bank transfers or direct credits and hire purchase. 23
Figure 4. Method of Payment
