Job Recruitment Website - Immigration policy - Why are digital products in New Zealand particularly expensive?

Why are digital products in New Zealand particularly expensive?

Here are some reasons for the high price of digital products in New Zealand:

1. Location: New Zealand is far away from major manufacturing centers, which means that transportation and logistics costs are relatively high. Because the product needs to be transported far away from the place of origin, it will increase the price of the product.

2. Scale and market size: New Zealand's population is relatively small, and compared with other countries that purchase digital products in large quantities, the market size of New Zealand is small. Therefore, in the scale of supply chain and economy, large-scale procurement and wholesale concessions may not be available.

3. Overseas customs duties and consumption tax: Most digital products are made overseas, and import to New Zealand requires customs duties and consumption tax. These extra expenses will increase the total cost of the product and make its price rise.

4. Parallel import: Many residents buy overseas goods through the Internet or cross-border e-commerce websites. Although this kind of parallel imports can reduce the price, in New Zealand, the government charges goods and services tax (GST) and handling fee for parallel imports. This has led to an increase in the price of parallel imports, which is not much different from the prices of goods sold by local shops.

5. Specific standards and certification: New Zealand has some specific standards and certification requirements, which may lead to additional testing and certification of products that meet the standards. These extra costs will be passed on to consumers, thus raising the price of products.

Generally speaking, the reasons for the high price of digital products in New Zealand include geographical location, market size, customs duties and consumption taxes, parallel imports and specific standards and certification requirements.