Quick Facts
- Online spending jumped 20% month-over-month in March as gas prices hit $4+ per gallon
- 83% of consumers cite gas prices as their largest cost concern, with 30% shifting shopping online
- Average order values increased 8% as shoppers consolidate trips and make larger purchases
Rising gas prices tied to the Middle East conflict are driving a massive shift to online shopping, with digital spending surging 20% in March compared to typical monthly increases of 1% to 5%, according to new data from e-commerce marketing company Omnisend.
Gas prices have jumped more than a dollar per gallon since the U.S. and Israel launched their attack on Iran, reaching a national average of $3.88 to $3.93 per gallon in late March. The price surge represents a 30% increase for the month.
“When gas crosses a psychological price threshold, the math changes,” said Marty Bauer, e-commerce expert at Omnisend. “A round trip to the store starts competing with ‘free’ shipping.”
Consumer behavior data shows the dramatic impact. An Omnisend survey found 83% of consumers cite gas prices as their largest cost concern, with 30% saying they would shift shopping online to avoid driving. Online orders jumped 12% while average order value increased 8%.
A separate survey by Snipp Interactive revealed that half of consumers said gas prices are impacting their shopping behaviors. Among those affected, 29.8% are consolidating trips and 21.5% are taking fewer trips overall. Another 26.1% are shopping at retailers closer to home, while 13.1% have moved to buying more online.
The shift extends beyond convenience purchases. Average order value for non-discretionary items like groceries and household staples increased 22% year-over-year in the first quarter as consumers stock up during fewer trips.
“For retailers, trip consolidation means bigger per-trip baskets, but also more deliberate, list-driven shoppers who are less susceptible to impulse purchases,” the Omnisend report noted.
The trend is accelerating globally. In South Korea, e-commerce app installs increased 2.8% and payments surged 14.5% in March. Some observers predict online retail could break 60% market share for the first time this year.
Shipping costs are rising alongside fuel prices. The U.S. Postal Service enacted its first-ever 8% fuel surcharge for packages, while diesel prices used in shipping spiked 36% to $5 per gallon.
Grocery spending faces particular pressure. A Snipp survey of 1,000 shoppers found more than one-third have cut grocery spending by trading down to generic brands or buying less food overall.
There are signs of potential relief ahead. Oil prices dropped after the U.S. and Iran agreed to a two-week ceasefire, which could provide temporary respite at the pump.
Read more: Higher gas prices could be pushing more consumers to shop online

