Chocolate Companies Struggling for Cost-Efficient Shipping
High shipping costs can put a bitter taste in anyone’s mouth, and with the rise of online shopping, chocolate companies are increasingly pushed to find ways to keep costs down in shipping goods directly to consumers.
For example, Hershey’s charges $6.95 to ship a $4.25 bag of its Kisses when consumers order directly from the website. It also ‘strongly suggests’ customers buy liquid ice packs and a foam cooler for an additional $4.99, bringing the total to $20.20 before taxes with the recommended expedited shipping, according to The Wall Street Journal.
Vosges Haut-Chocolat, a high-end chocolate specialty chain, says it loses money on most cold shipments to consumers. E-commerce orders, however, are growing faster than boutique sales, and so the company charges $10 on orders to cover costs and is working with different combinations of gel packs and dry ice to further reduce costs.
“The biggest hurdle is… maintaining that balance of what the customer is willing to pay for, and how to ship it to them in the best condition possible,” said Zach Jarosz, Vosges’s supply-chain planning manager.