How Increased Shipping Costs Affect Your Program

Samantha Mikos

In 2019, it cost almost $17.00 to ship a four-pound package in Illinois. In 2021, that same shipment is priced at over $28.00. Shipping costs are skyrocketing, and this could be detrimental to your recognition program if you don’t expect it. By taking the time to understand how this affects you, you’ll be ready to take on the challenge.

At Cristaux, we take great pride in our drop shipping solution. It has made us tune into the shipping industry even more closely than before. We cannot say enough how important it is to consider shipping costs and market trends when developing and adapting your plans. Continue reading to discover what you can do for your program.

How Shipping Costs Have Changed

Fedex Truck Express Shipping Business

The increase in shipping costs is explained by many economic factors and effects of the COVID-19 pandemic. Here are some to consider.

Remote Work

Due to the COVID-19 pandemic, many employees now work from home. Some organizations even closed their central locations and offices. As a result, space and distance widened across teams. However, recognition programs persisted with a new possibility: virtual events. These celebrations use a digital space to recognize team members, while still issuing tangible recognition pieces. As a result, it is now common to ship individual awards and gifts to separate – often residential – addresses.

For companies like Cristaux, it’s more expensive to send smaller shipments than larger ones. It takes more time, more supplies, and more money to fulfill individual, direct deliveries. We are happy to make these shipments and support virtual events. However, we stress awareness of the increase in costs.

Increased Surcharges

To clarify, a shipping surcharge is any fee for extra services added to the cost of transporting an item. For example, you may receive a surcharge for having to correct an address, shipping internationally, or for residential delivery.

Since the start of 2021, shipping surcharges have increased. Delivery service companies expect demand for shipping to grow, so they increase these fees to offset their added operating efforts. In New York, the cost of shipping certain packages has risen by nearly 94% since 2019. In California, the same has grown by about 67%. Surcharges are not wholly responsible for the increase in shipping costs. However, they are part of the equation.

How This Affects Cristaux

Cristaux branded shipping boxes being loaded into FedEx truck for Drop Ship

At Cristaux International, we offer drop shipping for every client. We will ship your custom awards, trophies, and gifts anywhere you need them. From bulk shipments to individual packages. From domestic deliveries to international destinations. We will ship it and ensure its safe delivery. We’re happy that this program is becoming more popular for individual shipments and virtual events.

However, convenience can be costly. Cristaux is affected by the increased shipping costs like everyone else is. Drop shipping is growing more expensive, but if it is a priority for you, then we can help you budget for it.

Is Drop Shipping Worth It?

Although our drop shipping solution is growing more expensive, it still returns great value. This solution is ideal for wide-spread teams and programs. This capability safely gets awards to deserving recipients and fulfills your program. The convenience is beyond satisfactory, taking the weight of logistics off your shoulders.

What to Do for Your Recognition Program

Recognition Program Drop Shipping

It’s never good news to hear costs are increasing. However, we offer a few tips to help support your budget and vision.

Keep Realistic Expectations

The first step in helping your program is realizing the impact of changing costs. Furthermore, it’s even better to anticipate these effects. To prepare for the unexpected, it’s best to maintain transparency and communication with any partners involved in your order. Also, you can collaborate with us to develop cost-effective solutions.

Ensure Correct Addresses

If you provide us with incorrect information, then we will receive more surcharges and ultimately increase your shipping costs. Being thorough will help avoid unnecessary fees. Take the time to make sure all the addresses your shipping pieces to are correct. Double check. Then, triple check.

Postpone Your Program

If your event is likely to be rescheduled, then postponing it could be ideal. You’ll need to find a supplier with inventory management capabilities. It’s important to know that the supplier holding your inventory may require a holding fee. Because of this, make sure you receive a quote and commit to a partner whose fees you can afford.

Shipping Costs Can Be Relieved

It’s daunting to develop a whole recognition program, let alone consider new costs. Increased shipping rates may not be good news for your program, but they can be managed. With Cristaux’s help, you can safely deliver custom awards to your recipients, all while honoring your budget.

Contact us to start your project today.