Many wholesale home decor vendors are adding surcharges on their orders because of the rising shipping rates and failing to get Fall and Christmas shipments delivered in a timely manner. These two factors are crushing retailer sales and profit margins.
ELC Designs Group has been working hard this year and deliveries will be arriving on time and with NO surcharges!
Why are your wholesale home decor vendors adding surcharges?
The single biggest reason wholesale home decor vendors have been adding surcharges is the sudden increase in container costs from Asia this past year.
Covid, a giant increase in demand for products in the e-commerce area, and the boom and bust pattern in the shipping industry, has caused shipping rates to rise by 400% or more and rates increasing daily as we move into "Peak" season.
Many wholesalers are passing on the rise in rates to the retailer by adding surcharges on orders (that were placed at the beginning of the year) scheduled for Fall and Christmas delivery.
Feedback from the Atlanta Gift Show
Retailers coming into our showroom told us they were surprised by surcharges from 3% to 10% and some suppliers calling them back after a couple of days and raising the surcharge even higher.
The biggest surcharge we have heard was a vendor telling the retail partners to "either pay the difference in the entire container freight from the "normal" base rate to the current rate or you won't get any of your Christmas order". That is a $10,000 surcharge!
What Additional Challenges are Retailers Facing?
Lower margins due to the surcharges is not the only issue retailers are facing. An even greater threat is empty shelves for businesses during the biggest selling season because of missing inventory.
Some vendors have not even shipped out summer products yet.
The Global Logistics Breakdown
Containers delivery is delayed and it is not getting better.
- Several weeks at the overseas port
- Bumped shipments from ships skipping ports leading to congestion
- Slower intermediary stops due to COVID restrictions
- US port delays unloading ships
- A US rail system that is basically frozen, adding weeks of transit time
- Local trucking companies lack of the equipment needed to bring containers from the railyard to the final destination (potential multi-week delays)
Overall these delays are adding months of transit time for shipments.
When Will The Shipping Situation Improve?
According to many freight forwarders, these high-cost long delay challenges are going to persist through 2022.
How to avoid paying a surcharge when you buy wholesale home decor?
Do not assume because you haven't seen a supplier add a surcharge to your sales order that they are not adding them on the invoice.
Ask all your vendors directly if they are adding surcharges and what basis they use for raising or lowering them. Ask if there are volume discounts that will lower this surcharge or if available stock can be used to avoid your having to pay these charges.
What Can a Retailer Do to Minimize Risk for 2021 and 2022?
Careful Tracking of Shipments
If your store carries very large pieces (i.e. Christmas trees or furniture) check with your vendor regularly on surcharge costs and whether the shipments have left.
Many wholesale suppliers will reply with an automated "It's on the way", or "It's at the port", but then they cannot tell you if your items are in the container.
Their statements are NOT true. If a container has been shipped your vendor can find out exactly what is in that container. It is required by U.S. customs.
They may not be able to tell you the exact arrival date, due to potential delays, but they should be able to provide a general timeline. If they cannot answer either what is in the container or an arrival timeline, most likely the container has not even been booked yet.
Purchase Available Now Home Decor Stock
Consider ordering “available now” stock as an extra from your vendors to buffer against shipments not arriving and inventory shortages.
Pre-Book for 2022
Wholesale home decor suppliers are adapting to a longer supply chain timelines and shortening their order windows for 2022. Retailers will need to plan and order earlier for 2022. Some vendors have already closed their pre-book for 2022.
What About ELC Designs Group's Situation?
We are pleased to let our customers know
- No Surcharges
- No Minimum Orders
- No Christmas Delay
We have available stock in several of our top-selling categories
Reduce Christmas Decor Inventory Concerns
If you are starting to be concerned that your shop will be missing Christmas deliveries from your other suppliers, contact us to see what Christmas and Winter Decor we still have available from our top-selling items.
Pre-Booking for 2022 Through September 1, 2021
ELC Designs Group is pleased to announce we are extending or pre-booking for 2022 until September 1, 2021. We want to give enough time for customers to plan for 2022
Shipping will begin Early February 2022.
3 Easy Ways to Order Home Decorations Wholesale from ELC Designs Group
Ordering with ELC Designs Group could not be easier or more flexible. We have three ways to place your order.
Just a quick reminder. ELC Designs Group is a wholesale home decor supplier and only sells to businesses with a tax id or EIN number.
Sales representatives to order those items that will work amazingly in your store.
One of our knowledgeable sales reps would gladly schedule a face-to-face meeting to assist you to find those items that will work amazingly well for your store location.
To find a list of reps and schedule a meeting directly with them, click “Meet Our Sales Representatives”.
Ordering Over the Phone
For those that would like to talk with our in house sales reps and walk through our wholesale catalog or to place an order, please call (352) 602-4570 (M-F (9:00 AM to 5:00 PM) or email us at firstname.lastname@example.org and we will call you back to help you order.
If you prefer the comfort of ordering at your own pace, click the registration button below. Registration takes only a few minutes and once approved you can view our online store and order immediately.
Register to access our online store and catalog full of trending home decor designs.