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Higher gas prices could be pushing more consumers to shop online

Online spending jumped 20% in March, according to a new report from Omnisend.

less than 3 min read

One foolproof way to avoid high gas prices? Shop from your couch.

According to a new report by e-commerce marketing company Omnisend, online spending surged 20% month-over-month in March as consumers avoid the $4+ price at the pump amid the Middle East conflict. Online spending typically shifts about 1%–5% on a monthly basis outside holiday periods, per Omnisend.

Consumers shopped more often and placed larger orders in March: Online orders jumped 12%, and average order value was up 8%. A consumer survey Ominsend conducted also found that 83% of consumers cite gas prices as their largest cost concern, with 30% saying they’d shift their shopping online to steer clear of driving.

Even if the higher gas prices could be ultimately baked into product or shipping costs, consumers still see online shopping as a workaround to spending on gas, Marty Bauer, e-commerce expert at Omnisend, said in a statement.

“When gas crosses a psychological price threshold, the math changes,” he said. “A round trip to the store starts competing with ‘free’ shipping.”

When consumers are shopping in person, they’re making the most of the gas they’re using by taking fewer but larger trips, Omnisend found. That’s especially true for purchasing non-discretionary items like groceries and other household staples, with average order value up 22% YoY in Q1. A Coresight report last month similarly noted shoppers would save gas by cutting back on shopping trips for non-essential items. Bauer called this “defensive buying” and noted that “brands that treat this like a sign of strong demand and keep pushing prices up risk speeding up the pullback.”

A consumer survey last week by brand loyalty and promotions company Snipp Interactive yielded similar results. Half of consumers said gas prices are impacting their shopping behaviors, with 29.8% consolidating their trips and 21.5% taking fewer trips. According to Snipp, 26.1% of consumers are opting to shop at retailers that are “closer to home” due to high gas prices, and 13.1% have moved to buying more online.

The Commerce Department’s monthly retail sales data, which includes e-commerce sales, continues to be delayed due to last year’s government shutdown, with March data set to be reported on April 21.

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About the author

Erin Cabrey

Erin covers beauty, grocery/food & beverage, and the wider CPG industry.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

By subscribing, you accept our Terms & Privacy Policy.