The impact of internet purchase on retailing

David Shi
1301951
Stream 1E

Introductory Business Studies 304001

The main impacts of the internet on retailing in New Zealand. This topic can be analysed in a variety of approaches. For example, through the advantages and disadvantages of internet purchasing and conventional retailing, consumers' different attitudes and preferences and statistics of recent years containing data relating to the issue.

Internet shopping currently is massively popular. New Zealand is likely to be contributing to the online retail industry 3.19 billion dollars, with the total amount of of nearly two million Kiwis using internet shopping at the end of 2012 (Kiwis $3.19b online, 2012). The main idea here is that consumers prefer the convenience, and take the advantage of less taxing because of most online stores being overseas (Albertson, 2012). The whole industry therefore expands at a high rate. And it is because of the above, more and more retailers started their own online stores on the base of having a existing store already (Albertson, 2012). It then circles back and contributes to the expand rate, the industry therefore works similarly to snowballing, the greater it is, the faster it gains it's volume. In this case internet purchase is expanding in a way of superseding retailing, however at the same time including some portion of it as a part of it's own. This is when analysing from a macroscopic point of view.

The main reason for the initial expansion of internet shopping lies in the currency strength of New Zealand against USA, it encourages people to do more overseas online purchases because of the expansion of unit price difference due to the rise of local currency (Internet retailing New Zealand, 2012). This is one of the main and significant advantage of internet purchase. The rise of New