Erik Gordon, one of the thousands of entrepreneurs who started an online business during the pandemic, has had to boost prices at his athletic gear business, the Sweat Company, to keep up with soaring shipping costs. Transport from the manufacturer in China or Pakistan to his distribution center in suburban Atlanta had equaled about half of the cost to produce his Eggplant-brand sweatpants and shirt.
Nonstop price increases for air and ocean freight forced him to raise the price of a pair of sweatpants to $49.99 from $35.99, although he also did some upgrades to materials.
“It costs me more money to purchase shipping for the pants than to make the pants,” Gordon said.
--With assistance from Alex Tanzi.
This article was provided by Bloomberg News.