Rising Gas Prices – New Renaissance for E-commerce?
June 18th, 2008Will the record oil prices and rising gasoline costs be the boon needed to create a renaissance for e-commerce?
I believe so. At the writing of this article according to Bloomberg.com, West Texas Intermediate crude is at $136.33 /barrel and the average price for a gallon of gas is $4.03/ gallon. With record prices with not sign up retreating anytime soon I believe we could see a whole new waves of online consumer that will use the web to purchase items to save gas to the mall or whatever superstore you prefer.
Main Reasons People Shop Online:
1. Save Time
2. Save Money (might be changing?)
3. More Selection (usually)
4. Save Gas (????)
5. Enjoys Shopping Online (small but growing)
At this rate I believe more people will move purchases online to save trips they would normally drive to a shopping center. Suburbs and Rural areas will mostly likely see the greatest growth in this area, being they are usually the farthest away from major downtown business districts. This brings us to the next question.
With the rise in fuel prices, will we see prices online rise?
I think so as well, with these higher gas prices (and a host of other issues) we are already seeing prices for air cargo and travel rise in step. This increase will have too be offset at some point. I am not sure how long Amazon.com and the likes will absorb these increased operating costs before they will need to offload some of that too the consumer to maintain or prop-up decreasing margins?
In conclusion I wanted to close with saying that we are entering an unprecedented time that will have many ups and downs and a good thing to do is to keep an open mind, weigh the options and make your own choice. In the end, this is just my opinion. Please email me with comments and if they are insightful or interesting I will add them with your first name, last initial and city/state.
.02
Dal
