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To: Bill Harmond who wrote (77469)9/16/1999 12:43:00 PM
From: Eric Wells  Read Replies (2) | Respond to of 164684
 
>>Fuel prices affect all channels of commerce.

I just think e-tailers, many of which have very thin margins and are operating at loss, might be more sensitive to rising fuel prices (assuming they result in higher shipping costs).

If you think about it, if Fed-X, UPS and the US Postal service raise prices, companies like Amazon and Etoys will either have to raise prices or absorb the increases. I think absorbing the increases is out of the question. So if they passed the increased shipping costs on to customers, it might force some customers to go to bricks & mortar stores to do their shopping. Yes, the prices at the bricks & mortar stores might be higher as well - but not as much.

This is pure speculation on my part. But I think there could be some impact.

Thanks,
-Eric