Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Will Higher Gas Prices Spark More E-Commerce?


? Best of the Web: The Results |

Main

| The iPod nano Watch ?

September 19, 2005

Will Higher Gas Prices Spark More E-Commerce?

Rob Hof

Shmuel Gniwisch, the CEO of the online jewelry store Ice.com, thinks so. He doesn't have hard evidence that the cost of driving to stores will drive people online, but he's putting his money where his mouth is: This holiday season, for the first time, he will offer free shipping on any order and free returns. Of course, jewelry doesn't cost that much to ship, but he thinks the offers will be the extra push for the "fence sitters who have a hard time purchasing on the Net." (And according to Forrester Research, that's almost 30% of North American consumers.)

Some online retailers are already worried about gas prices pushing their costs higher, so it's a bold move. But some folks like Jay Small at Poynteronline think online stores ought to use gas prices as a marketing tactic: "Don't drive, just click." Given that e-commerce otherwise is pretty healthy these days, I wouldn't be surprised if other players follow that advice.

06:31 PM

Amazon.com, Google, Yahoo, e-commerce, eBay

TrackBack URL for this entry:

http://blogs.businessweek.com/mt/mt-tb.cgi/


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus