Rising Oil Prices Could Hurt Chinese E-Commerce

The rising price of oil has been all over the Chinese news recently. It’s having a serious impact on motorists, and it has even resulted in a nationwide subsidy for taxi drivers (although they say the subsidy isn’t enough to offset their increased costs). But it could also have an impact on Chinese e-commerce, as the price of shipping for nearly everything is likely to rise as delivery companies are forced to deal with increased energy costs.

According to the Guangzhou Daily, industry insiders are saying they do expect a price hike during the busy season, which begins in May. Other insiders have said the gas prices can be digested internally and prices won’t rise; in all likelihood it will depend on the company in question. But oil prices aren’t likely to start dropping anytime soon, so sooner or later delivery companies will need to compensate somehow.

For the moment, the potential increase in shipping price is probably minimal — something like 0.5 RMB to 1 RMB (8-15 cents) per package. It’s not exactly going to break the bank, but for customers who do a lot of online shopping, if prices continue to rise, it could become a serious impetus to shop offline.

Also in oil-price-related news, a man now being called “gas prices brother” became has become famous on the Chinese internet after a reporter spoke to him as part of a “man on the street” segment about rising oil prices. When asked his opinion on the rising prices, “gas prices brother” asked if he was allowed to use curse words. The reporter told him no, and he responded: “In that case, I’ve got nothing to say,” which sums up the way a lot of people are feeling about this. He became one of Sina Weibo’s trending topics yesterday and remains in the number two spot today (as of this posting).