As web entrepreneurs, the cost of fuel is adding another weapon to your marketing strategy. On the surface, it seems obvious. Shop online and escape the high cost of gas. Unfortunately, it’s not going to be that easy a ride online.
As someone who markets and/or sells items online, there is a definite advantage to flaunt. You can shop from home instead of hauling down to the big box stores driving from one store to another. Take the $20 in gas you would have spent doing that and buy another widget. Or you could even pitch that by staying at home to shop, you probably saved $x (go do the research for your particular audience) which can buy this gadget on our site. There are a million angles to take on it, use your creativity.
The thing that you have to be aware of and need to come up with a solution to is an increase in shipping costs. We’re all feeling it, be it general increases or fuel surcharges, it’s affecting the final number that the customer pays. Worse still, it’s money that they’re spending that you’re not getting a cut of. What you want to do is make 100% sure that the shipping costs are accurate on your website and consider the cost/benefit of offsetting some of the increase. Shoppers are increasingly aware of just how much shipping charges can run up a price and as people in the US tighten their belts and close their wallets, they’re more likely to pay even closer attention still to exactly what they’re paying for what they’re getting.
There’s a huge opportunity to attract new business in a changing climate, but just make sure that you have your bases covered since the new consumers are likely to be increasingly frugal and picky.
Dan Scott // Jun 2, 2008 at 11:53 am
You failed to mention Shipping charges in your article. The item’s gotta get to you somehow! This is where the rising gas prices will gouge customers, since gas goes up and so does the cost of shipping :/
Marc // Jun 2, 2008 at 12:10 pm
Hey Dan, you may want to re-read the post. 33% of it is about shipping costs.
PCsl // Jun 2, 2008 at 7:47 pm
I’ve been using the internet to purchase goods for years . The increase in shipping prices makes very little difference, when the saving made on the product online (even including shipping price increase) totally outweighs that of the retail price.
Mfb // Jun 2, 2008 at 10:39 pm
I’ve been shopping online for years, but only for products that I wouldn’t otherwise have gotten cheaper in the stores. Like books at Amazon for example, especially the used ones, are a great deal, and are cheaper even with shipping. There are also free shipping deals online for certain stores.
Ling // Jun 5, 2008 at 1:59 am
Lots of hotels are offering free gas rebate packages worth $50-100, to offset customers’ costs. Point is, you have to look at the big picture. How far do the customers have to drive to get your product, as opposed to a competitor’s product. If yours is longer, then you have to offer a gas rebate.
Raymondo // Jun 5, 2008 at 4:56 am
This was a good read thnks. I’m in the UK and fuel prices are insane at the moment!
TR // Jun 5, 2008 at 5:17 pm
With every problem there is an opportunity. I hadn’t thought of that saving gas angle for affiliate marketing, but it’s a good one. I need to do a better job of keeping a pulse on my customers.
G // Jun 6, 2008 at 9:32 am
Well… oil prices are strongly corelated with internet usage… the more people use web for communication, less they go out and use oil
btw… there is great documentary called: Who killed electric car? Conspiracy theory?
andy // Jun 7, 2008 at 4:30 am
I think shipping on the other side almost balances the equation. Very few things in business seem to give you the advantage you think they are going to.
Rohit // Jun 7, 2008 at 5:47 am
I am at India and fuel prices got high yesterday only.I prefer being @ home now
Ernesto // Jun 7, 2008 at 12:03 pm
Hopefully, with the increase in shipping costs and charges, this will not affect the prices of goods that are sold on online shops – not significantly anyway.
kristian Liebrand // Jun 10, 2008 at 3:27 pm
It’s a very serious issue about rising prices of fuel and this is going on just because of increasing population and increasing transport alongwith them and the only way to solve it is by increasing the prices of cars and motorcycles so that public will prefer more of public transport.
CDL // Jun 13, 2008 at 3:48 pm
In my country fuel keeps always increasing. In my whole life and i havent heard that fuel proce has decreased in my country.
kevin // Jun 18, 2008 at 4:01 am
hey ‘Raymondo’ tell me about it, this morning i’ve just had to pay £1.32/litre for diesel. americans count yourself lucky, you don’t pay anywhere near what we pay, although i know you do have larger engines etc … oil is a major concern at the moment.
Discount Area Rugs // Jul 17, 2008 at 2:18 pm
I heard that here in the United States, it is expensive but not as expensive as the ones in Europe. I heard it goes up to 10 dollars a gallon there?Is this true?
Life Coach // Jul 19, 2008 at 3:58 pm
Rising gas prices does play a role in marketing strategies, just look at how cars are being marketed primarily for their fuel-efficiency more than anything else.
Celina Buy // Jul 22, 2008 at 3:16 pm
I don’t have to worry about the fuel prices. I bike everywhere and have all my roads paid for by you drivers – so generous
pak // Jul 30, 2009 at 10:23 am
One thing that we forget about, though, is how high fuel prices don’t just impact online sellers, it also (maybe even to a greater degree) impacts big box retailers. Wall Mart and Best Buy ship everything around the country on trucks. So, they will have to charge higher prices as well – online sellers should still maintain a sharp advantage, even if we have to raise shipping rates because of fuel prices…