Thursday, August 28, 2008
Shrinking Online Discounts
Almost all goods sold in the U.S. travel by truck. And with drivers shelling out a full Grand (that's $1000) for a fill-up, shipping and delivery charges are rising at a proportional rate. In some cases our actual shipping charges have seen a 60% increase. The increase is particularly noticeable for oversize shipments.
Hospital Beds and Adjustable Beds, Lift Chairs and Power Wheelchairs, all examples of oversize products (Freight Deliveries), have risen a full 60% and this is reflected in our White Glove In-Home Setup charges.
These high fuel cost must be affecting all aspects of commerce, not just e-commerce. Websites and Internet Merchants that are not keeping on top of manufactures (vendor) price increases and ignoring the increase in shipping cost are setting themselves up for failure. That's not entirely a bad thing, and is part of the otherwise natural process that occurs over time in which we separate the good, the bad, the ugly, and the missing. They won't be around long without making a profit.