A big part of LibDib’s origin story is transparency. We created a distribution company that is overly communicative about the business and our goal has always been to make sure Makers are aware of our operational successes and challenges alike.
Here’s the deal: Since adding dock and delivery fees, LibDib has not changed or added fuel surcharges in any market. As of December 1, 2021, LibDib will have a temporary surcharge in the form of a bill back of $6 per case to cover an increase in our costs in CA, FL and NY on any second leg shipment from our warehouse to a Buyer. Our costs in CO and WI have slightly increased but we can avoid a surcharge at this time in those markets. In our recently added markets of IL, CT and MD we have established up to date dock fees already.
Here’s why we are doing this now: Plain and simple, supply chain costs have been rising especially when it comes to logistics.
Why? A few reasons:
- Higher Demand: E-commerce has not only skyrocketed in the alcohol industry, it has skyrocketed everywhere. Stimulus checks for more spending and the pandemic have created a huge e-commerce surge across all industries. And with e-commerce comes fulfillment. Trucking availability is limited. Warehouses are full. Higher demand and lower supply = price increases across the board.
- Labor Shortage: The last three months registered the highest number of resignations from the workforce in U.S. history. Ever. This affects everything and there are not enough people to deliver things.
- Increase in the Price of Fuel: It’s more than $5 per gallon here in California! Well, this is just as it is. Record prices for gas. Wow!
How will this work? The least disruptive way to remedy the situation for the time being is that LibDib will bill Makers back for the additional surcharge for each case that is delivered from our warehouse to a Buyer.
For example, when a case ships to a California Buyer via our warehouse, the platform accounts (right now) for an $8 Dock and Delivery fee. We will bill Makers back an additional $6 for that shipment at the end of the month.
As a former Maker myself, I would often get hit with “fuel charges” when the cost of gas would get higher. I know it’s frustrating, but ultimately it is a part of doing business in an industry where trucking, labor and warehousing are key components to how goods are stored and delivered. And right now, the industry is fluctuating in ways nobody has ever seen. I feel your pain and I hope you understand. However, we are not alone in these adjustments. Most distributors are changing things up right now as the cost of doing business has increased for everyone. It’s my promise to you that we will reevaluate fees regularly and work to bring the charges down if we can. Stay tuned for some tips and tricks from our high volume Makers on how to further optimize shipping costs, especially how to save money on the first leg of shipping. Thanks for your support of LibDib.
We appreciate you!