Will fuel prices boost online sales?

[ron komorowski]

I'm taking notice of my roads in central NJ. Not many are using these days. As I was driving I thought hmmm...people must really not want to drive much anymore. I think this is permanent...or until we get smart and get rid of our SUV's and other guzzlers. I git rid of mine and I'm VERY happy about it!

I thought this might give a surge in online sales. Any other opinions? This is certainly good for me. The trick with this business stuff is one thing.....predict the curves before they come up....and prepare.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

[Mega B]

You guys are lucky in the UK petrol is $10 a gallon.

[Yiie]

Wouldn't the increase of fuel prices also increase postage costs for the online owner?

I think it all depends on your product. It seems like with the economic uncertainty and the increase of rice and oil, people are not really spending much these days.

[kiddoso]

Personally I think it's hard to say, because there are more than one variable involved. On one hand, holding all other variables constant, increase in gas prices increases the proportion of sales done online. However, the reduction in disposable income would reduce sales (whether it's online or traditional B&M) altogether.

[radreality]

I personally highly doubt that there is any correlation between fuel prices and online sales.

Let’s face it; fuel prices really aren't as high as they could be. Mega B is right; the prices in Europe are much higher than in the US. People freak out about paying a couple extra dollars per fill up, relax. If you are that concerned about it, then do something about it, don't rely on others to fix it for you. This is how successful entrepreneurs and business people are created.

If you calculate the numbers, I'm sure the gas it takes to go to the mall is still cheaper for most Americans than the shipping costs for buying something online. Most online purchases are spurred by convenience or it’s an item that can't be found locally.

______________________________
Robert Falk
Business Developer / Investor
Self Help Forum | Business Resources

[ron komorowski]

Interesting posts here...sometimes the consumer does strange things though. Like a celebrity endorsement can make a product. Consumers can be foolish and not figure as exact as stated here.

I think in their heads as the fuel issue is heavily upon us, saving gas might be on their minds which will influence a change in the ways of shopping.

A UPS truck is much more efficient filled with boxes than driving 3000lbs of steel to pick up a 5 lb package. Therefore shipping charges may become more efficient or feasible.

Hmmmm....interesting thoughts from everyone here! I'm betting online gets a boost....until we learn to use conserving vehicles anyway like other countries have.

Ron
Inventor of Handi-Straps
Handi Straps Lifting System Home

[ron komorowski]

You guys are lucky in the UK petrol is $10 a gallon.

So that's somewhere around 14 Euros? What does everyone do there then? I have to go there soon. Should I get a skateboard??? Sounds tough....always heard it was so high. Do many walk? Lots of bicycles or mopeds?

I never understood why we need 3000lbs of steel to go drop off a letter. We need other types of vehicles that would also be allowed on the roads...and not worry so much about crash tests, just allow on secondary roads with maybe a 40 mph speed limit at most.

That is in my plans, see if I can contribute something in transportation. I've been facinated with transportation systems for many years.

Ron
Inventor of Handi-Straps
Handi Straps Lifting System Home

[ChrisBenjamin]

Maybe a bit, don't know if it's enough to somehow capitalize on.

[tazman9r]

I personally highly doubt that there is any correlation between fuel prices and online sales.

Let’s face it; fuel prices really aren't as high as they could be. Mega B is right; the prices in Europe are much higher than in the US. People freak out about paying a couple extra dollars per fill up, relax. If you are that concerned about it, then do something about it, don't rely on others to fix it for you. This is how successful entrepreneurs and business people are created.

If you calculate the numbers, I'm sure the gas it takes to go to the mall is still cheaper for most Americans than the shipping costs for buying something online. Most online purchases are spurred by convenience or it’s an item that can't be found locally.

Yeah, I gotta agree. This is not quite the economic disaster many would suggest or hope for. I'll go back to my melon analogy, stress the plant and you get fruit. Necessity is the mother of invention. Go do what you want. Drive an SUV and pay more to fill up, or buy a hybrid and don't buy as much fuel, or really piss off your "Global warming is killing the planet" neighbor and buy a Chevy Tahoe SUV, so you have the best of both worlds.

This whole oil thing is only a big deal as long as we let OPEC and Governmental agencies make it a big deal, which means coming up with a viable alternative. That alternative is staring us in the face, but we have let ourselves be convinced that it is not viable. The truth is that using this alternative does not support or require a system either the size or scope of the oil system.

If a gas company derived fuel alternative does hit the market, look for it to be either more expensive than gasoline or at least similarly priced. The reason is because whatever this alternative is will be at least as difficult as oil to get to, and it will also need refining. Unless our government allows new facilities to be constructed in the US to refine this new material (which, buy the way, will need to work effectively in current technology engines) we will be dependent on those countries where this material can be refined. I hate to say this, but the days of buying $0.78 per gallon fuel (the price ahead of the first gulf war) are done.

[Warranties-For-Less]

I'm taking notice of my roads in central NJ. Not many are using these days. As I was driving I thought hmmm...people must really not want to drive much anymore. I think this is permanent...or until we get smart and get rid of our SUV's and other guzzlers. I git rid of mine and I'm VERY happy about it!

I thought this might give a surge in online sales. Any other opinions? This is certainly good for me. The trick with this business stuff is one thing.....predict the curves before they come up....and prepare.

Ron Komorowski
Inventor of Handi-Straps
Handi Straps Lifting System Home

Absolutely, I am driving half of what I use to, and make better use of the trips into town than ever before. Just switched to BlockBuster online, walk to bus stop with daughter now, order almost everything online, so no doubt, I am driving less than ever before.

I even took the bus to casino last trip, and I would have never done that a year ago, wasn't bad deal for only $3.50. lol

[1entrepreneur]

Good question!

I think there may be a trade off: if people drive less to the shops, and buy more online, more courier/mail trucks will be on the road, delivering.

I pretty much walk everywhere I can , and only drive to work or to drive to places too far to walk(more than 1 hour total walking time).

[tazman9r]

Good question!

I think there may be a trade off: if people drive less to the shops, and buy more online, more courier/mail trucks will be on the road, delivering.

I pretty much walk everywhere I can , and only drive to work or to drive to places too far to walk(more than 1 hour total walking time).

I live in a town where everything is probably about an hour and a half's walking distance away, I just don't want to invest that kind of time to getting places and doing things.

[rogercbryan]

I'm just starting to change the way I do things. I drive between DC & Philly each week and yesterday was the first time I took the train instead of driving. With gas prices around $4 per gallon in DC its becoming way to expensive to drive every where. We have a great public transportation system that I plan on taking advantage of this summer.

We have seen through my transportation company and my auto auction clients that our Internet sales are booming. Because the local inner city economies (DC, Philly, and Boston) are getting hit pretty hard (our buyers are low income for the most part) we have started doing more marketing to Canada, Mexico, and Europe. With the weak dollar we are seeing our on line sales to exporting countries increase significantly. Over the past 6 months out of country sales have gone from under 5% to about 14%. So based on what I see a combination of high fuel prices and the weak dollar is contributing to an increase in on line sales for my companies.

Welcome to Capital Auto Auction
Had to throw a plug in there... save time... buy on line! :-)