Online shopping was increasing and significant platforms were making it easier to sell products on their sites.
"If you intend to export, this is a way to start testing the marketplace which will cost less than the traditional costs to set up in export markets," Mrs Nicholls said.
Sellers would also be able to get immediate customer feedback from reviews.
Mrs Nicholls warned retailers needed to be careful. Online selling was not for the faint-hearted.
Earlier this week, Hamilton City councillor Angela O’Leary said she wanted to woo Amazon to set up its proposed warehouse in the city.
Indications last weekend signalled the global online giant could consider New Zealand for a warehousing operation after its move to Australia.
"This is a great opportunity to pitch Amazon early and showcase what Hamilton can offer."
Hamilton had space, as the Tainui Ruakura Inland Port was due to come on stream in 2020, and there was industrial land north of the city.
"With our links to the Port of Tauranga and central North Island location, we have a clear advantage over other cities in New Zealand," she said.
Mrs Nicholls said many of her retail members were talking about the impact of initiatives like those from Cr O’Leary.
Amazon was no different to any other channel retailers could use to sell their products. Retailers needed to do research and understand how the marketplace worked.
"Your product can get noticed by larger players which may lead to wholesale orders. There are many courses and online communities which can assist your transition to these online platforms."
Amazon had been successful and had free search engine traffic, along with higher buyer intent. Conversion rates were in double figures, she said.
But not all products would work on those platforms. Ideally, a retailer would need a product with a unique point of difference. Natural or organic products worked well, along with a smart design. Wool dryer balls were a good example. They were anti-static, reduced wrinkles, a natural fabric softener and reduced dryer time.
Products working well on Amazon included a premium product, a low level of competition, a price to meet the market, good volumes and a product which was not too heavy to keep delivery charges to a minimum, Mrs Nicholls said.
"You need to go into this with your eyes open. Other manufacturers watch these platforms closely and have been known to copy your products quickly."
Otago and Southland retailers wanted an even playing field when it came to tax, she said.
When her members imported stock into New Zealand, they paid GST and the associated levy and duty requirements. If they ordered low-value items online from an overseas website, which were generally below $400 in value, they did not pay those costs.
However, the difference could be significant. GST was 15%, and the levy and duty fees could be as much as an extra 10.7%, depending on the product being imported.
Retailers were asking for those sales taxes to be treated in an equitable and consistent way, meaning overseas online platforms should pay the same taxes, Mrs Nicholls said.
"It is not fair retailers based in New Zealand collect and remit GST on customer purchases while overseas online retailers sell customers similar products and do not collect GST."
At the very least, New Zealand should introduce a lower threshold for low-value goods and it should be collected at the border. New Zealand was missing out on significant revenue, Mrs Nicholls said.
