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Bye bye E-Commerce

Discussions about the economic and financial ramifications of PEAK OIL

Bye bye E-Commerce

Postby Mishka » Sat 09 Jul 2005, 07:53:44

Hasn't it been wonderful to buy any book you could dream of an Amazon. Or how about a slice of Michael Jackson face toast on E-bay. When PO fuel prices bite harder, how many people will wear the 2, 3 or more, fold price increases in shipping to their door. It will back to the local shops. A hell of a lot of jobs in distribution and IT will disappear aswell.
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Postby Jack » Sat 09 Jul 2005, 09:28:22

Maybe.

But what if Amazon started selling more e-books, which you could buy for a fourth (or less) the cost of a physical book...could download immediately...and had no shipping costs?
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Postby Leanan » Sat 09 Jul 2005, 13:22:40

I think Mishka is right. Damn, but I'm going to miss the Internet. Amazon.com, sure, but even more, Google. Being able to hop online and find out almost anything you might want to know. No more going to the library or looking it up in a dusty, out-of-date almanac. Whether you're arguing with your friend about who won Super Bowl XXX or looking for blueprints on how they build highways in Wisconsin, it's online somewhere.

I suspect we don't realize how much energy it takes to keep the Internet going. Our own computers don't use a lot of electricity. But the server farms that are the backbone of the net do. Some of them have their own power plants. One reason for the natural gas/electricity shortage in the northeast is the explosive growth of the Internet. (The other is the increased use of air-conditioning in summer. Which may also be partly computer-related.)
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Re: Bye bye E-Commerce

Postby avo » Sat 09 Jul 2005, 14:47:41

$this->bbcode_second_pass_quote('Mishka', 'W')hen PO fuel prices bite harder, how many people will wear the 2, 3 or more, fold price increases in shipping to their door. It will back to the local shops.


The cost of shipping to the local shops will also rise.

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Re: Bye bye E-Commerce

Postby lowem » Sat 09 Jul 2005, 22:15:02

$this->bbcode_second_pass_quote('Mishka', 'H')asn't it been wonderful to buy any book you could dream of an Amazon. Or how about a slice of Michael Jackson face toast on E-bay. When PO fuel prices bite harder, how many people will wear the 2, 3 or more, fold price increases in shipping to their door. It will back to the local shops. A hell of a lot of jobs in distribution and IT will disappear aswell.


Already given up on ordering through Amazon a long time ago. Shipping cost is too much, even the cheapest, slowest options.
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Re: Bye bye E-Commerce

Postby lotrfan55345 » Sun 10 Jul 2005, 00:54:46

$this->bbcode_second_pass_quote('lowem', '')$this->bbcode_second_pass_quote('Mishka', 'H')asn't it been wonderful to buy any book you could dream of an Amazon. Or how about a slice of Michael Jackson face toast on E-bay. When PO fuel prices bite harder, how many people will wear the 2, 3 or more, fold price increases in shipping to their door. It will back to the local shops. A hell of a lot of jobs in distribution and IT will disappear aswell.


Already given up on ordering through Amazon a long time ago. Shipping cost is too much, even the cheapest, slowest options.


How about a local e-storm, doesn't amazon have to ship all the way from the US?
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Re: Bye bye E-Commerce

Postby lowem » Sun 10 Jul 2005, 03:45:52

$this->bbcode_second_pass_quote('lotrfan55345', 'H')ow about a local e-storm, doesn't amazon have to ship all the way from the US?


The local Yahoo! auctions are kinda booming, though.

Guess I'll stick with the local shops, libraries - and channel BT :lol:
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Postby Leanan » Sun 10 Jul 2005, 10:32:23

$this->bbcode_second_pass_quote('', 'T')he cost of shipping to the local shops will also rise.


Yes, but that's still a more energy-efficient way to distribute goods.

EBay and Amazon have been a huge headache for transportation engineers. Instead of moving a truckload of widgets from point A to point B, you have dozens of trucks going from points A, B, and C to points W, X, Y, Z, AA, BB, etc. Trucks are "rolling warehouses," going door-to-door and producing heavy traffic on local roads that weren't designed for that kind of load.

Our old distribution system was more efficient. Goods went from factories around the Great Lakes out to warehouses at distribution centers, and from there to downtown Main St. or, later, large shopping malls or commercial areas. Often, the bulk of the "heavy lifting" was done via train, river, or canal.

I think we will eventually have to move back to this kind of system. That means not only no eBay, but no Wal-Marts out in the middle of nowhere.
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Postby MD » Sun 10 Jul 2005, 10:41:56

$this->bbcode_second_pass_quote('Leanan', ' ')

I think we will eventually have to move back to this kind of system. That means not only no eBay, but no Wal-Marts out in the middle of nowhere.


Very good point, especially regarding Ebay. Packing and shipping costs already make most transactions under $20 no bargain. The cheap UPS culture is likely a canary.
Stop filling dumpsters, as much as you possibly can, and everything will get better.

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Postby strider3700 » Sun 10 Jul 2005, 13:25:25

THe costs of shipping from amazon to my house will increase. the cost of shipping to the local stores will increase but probably less. The cost of getting me from my house to the local store will increase as well though.

It currently costs me $2.23 to drive into town and back. So add in the fact that I have no idea whats actually at my local stores until I get there but I know instantly if amazon has it and when it will arrive at my door and I think it will need to be a big increase in price before I give up on online shopping
shame on us, doomed from the start
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Postby MD » Sun 10 Jul 2005, 13:34:02

Perhaps there will be emerging solutions from transportation logistics people as economies change.

As an example:
Let's say there is a great reduction is movement of goods due to a shrikage of economies.
Let's speculate then that the idled warehousing capacity is reconfigured so that a specific household is assigned a bin at the closest facility.
The user could order goods online, that will accummulate in their bin until the next scheduled trip.
Efficiences could be built into the transportation network all the way up the line.

That's just an off-the-cuff speculation, my point being that as circumstances change, markets will adapt. Trying to predict just how has made and broken many a fortune.
Stop filling dumpsters, as much as you possibly can, and everything will get better.

Just think it through.
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Re: Bye bye E-Commerce

Postby Librarianne » Sun 10 Jul 2005, 23:41:25

$this->bbcode_second_pass_quote('Mishka', 'H')asn't it been wonderful to buy any book you could dream of an Amazon. Or how about a slice of Michael Jackson face toast on E-bay. When PO fuel prices bite harder, how many people will wear the 2, 3 or more, fold price increases in shipping to their door. It will back to the local shops. A hell of a lot of jobs in distribution and IT will disappear aswell.



People in distribution and IT may lose their jobs, but as the economy moves back to a more local focus, different jobs will open up. Perhaps even more meaningful jobs, as people become closely connected to their communities.

The truth is Amazon, Wal-Mart, and other large chain stores put many small local shops out of business. It might be cheaper to shop there in the short run (and I'm guilty of it too), but eventually the loss is to the community.

My optimistic side hopes that communities will rebuild, people will discover skills they might have overlooked, and we can all live happily ever after! [smilie=5flowerface.gif]
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Postby Librarianne » Sun 10 Jul 2005, 23:47:54

$this->bbcode_second_pass_quote('Leanan', 'N')o more going to the library or looking it up in a dusty, out-of-date almanac.


I'm sorry your library doesn't meet your information needs very well. We've all become accustomed to instant gratification, whether it be for material goods or information. I'm just a bit biased towards libraries, but if people really supported them well they could be stellar resources.
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Postby Leanan » Mon 11 Jul 2005, 00:16:07

The problem, IMO, is hours. It's ridiculous. Almost everyone works these days, yet a lot of businesses and services are still only open 9-5. When no one can go, because they're at work.

Anyway, I like shopping and looking stuff up at, say, 3am. When it's convenient for me. The librarians around here are very good, and you can call them with simple questions. (A couple of them are friends of mine, in fact.) But I rarely go to the library. Don't have the time, they don't have the selection, and they're in a bad area of town. Park in the library parking lot if you want your car broken into. There was also a rape in the parking lot a few years ago, and there have been numerous muggings as well.
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Postby Librarianne » Mon 11 Jul 2005, 00:32:37

$this->bbcode_second_pass_quote('Leanan', 'T')he problem, IMO, is hours. It's ridiculous. Almost everyone works these days, yet a lot of businesses and services are still only open 9-5. When no one can go, because they're at work.

Anyway, I like shopping and looking stuff up at, say, 3am. When it's convenient for me. The librarians around here are very good, and you can call them with simple questions. (A couple of them are friends of mine, in fact.) But I rarely go to the library. Don't have the time, they don't have the selection, and they're in a bad area of town. Park in the library parking lot if you want your car broken into. There was also a rape in the parking lot a few years ago, and there have been numerous muggings as well.


Very sorry to hear that! And yes, there are those times when it just isn't convenient to actually go to the library.

Cheers!
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Postby emersonbiggins » Mon 11 Jul 2005, 00:47:48

And, also, don't forget that those libraries are money-pits, just like police and fire protection, public transit and public education. You know that if something can't turn a profit, it just isn't worth having :P .
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Postby I_Like_Plants » Mon 11 Jul 2005, 04:44:32

The libraries are worth having, just put some armed guards around that one in the bad neighborhood and tell 'em the law will look the other way if they off a few baddies a week.
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Postby lawnchair » Mon 11 Jul 2005, 09:41:08

My prediction for e-commerce: it has a future. The model will change, though.

In early 1900s across rural America, the Sears catalog was the "e-commerce" of its day. While they would send you things by US Mail, people often ordered items and picked them up at their agency outlet in town. This outlet often was on the railroad, with a boxcar siding. Shipping was cheaper if you picked it up at a store.

While not as fast as the e-commerce we've known, I think the "make an order, pick it up" system will have merit, both over the "everything delivered in little UPS boxes" model and the "multiple millions of items in each walmart" model.
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Postby Leanan » Mon 11 Jul 2005, 11:01:19

$this->bbcode_second_pass_quote('', 'W')hile not as fast as the e-commerce we've known, I think the "make an order, pick it up" system will have merit, both over the "everything delivered in little UPS boxes" model and the "multiple millions of items in each walmart" model.


I do, too. But I'm not sure it will be over the Internet.

When I was a teenager, my family moved to a very rural area. UPS and Fedex wouldn't deliver there. The U.S. Post Office would deliver to the nearest highway. So everyone had mailboxes along the highway, though some of them lived miles away. (Yes, we drove to the mailbox. Many people found that so inconvenient that they just got a post office box in town....30 miles away.)

Sears had a little office in what passed for the mall in town. It was, literally, just a hole in the wall. You mailed or called in your order, and when it arrived, they notified you by mail. Then you drove into town to the Sears office to pick up your stuff.

I really don't think that would have been sustainable without cars. The model will work, but only if people move closer in.
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Postby gg3 » Mon 11 Jul 2005, 11:14:14

Lawnchair's kinda' on target here.

Don't forget that the great advantage of the UPS model is, the goods come to your door, you do not drive around to get them.

Delivery by truck is far more efficient than individuals in cars.

The only inefficiency in UPS (etc.) at present is that not every house has deliveries every day, but some deliveries have to be made each day, therefore the truck routing is inefficient.

The obvious solution to this will be to consolidate deliveries. UPS and each of the other couriers will come through a couple of days per week.

And if the delivery hours are inconvenient for your schedule, you'll rent a private mailbox (private companies that have something similar to postal boxes but ship/recieve to/from all carriers) in town for about $15 per month, where all of your mail and packages will go, and where you can pick up whenever you're in town.

You call them on the phone and they tell you what's in your box and what packages have come, and you don't have to go fetch unless the box is full or there are packages. These services already exist, I've been using them for twenty years, and the quality of service makes it worth the price by a long mile.
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