As of May 2, our product prices will unfortunately need to increase. Generally speaking, the reasons for this are current inflation rates, global issues with supply chains due to COVID-19 and price increases from our suppliers.
For us, this has meant a 25% increase in costs within our supply chains. We have thoroughly reviewed our options and this is the result: from May 2, we will increase product prices on the EU and NA platforms by an average of 6%, with increases varying by item.
Want to know more? Below, we’ve put together a collection of different links for you with more information on the reasons behind the price adjustments.
More background on the product price changes
Cotton prices are up: Global consumption is expected to reach record levels this year, exceeding available supply. Unfortunately, this also applies to production in the coming years. Want to know more? You can find more information here:
- https://tradingeconomics.com/commodity/cotton
- https://www.usda.gov/sites/default/files/documents/2022AOF-cotton-outlook.pdf
- https://www.globenewswire.com/news-release/2022/02/07/2380153/0/en/Global-Cotton-Market-Prices-to-Pick-Up-5-in-2022-on-Rising-Demand-and-Limited-Crops-in-India-and-U-S-IndexBox.html
Inflation in the USA and in Europe is causing prices to rise all over the world. For an overview of inflation in NA and the EU, click here:
- US inflation: https://tradingeconomics.com/united-states/inflation-cpi
- EU-Inflation: https://ec.europa.eu/eurostat/documents/2995521/14358044/2-02032022-AP-EN.pdf/617fee08-c46f-453a-a308-4fa3d33f4aae
Another reason for adjusting our product prices is the current peak in energy prices. This impacts the cost of producing and delivering our products.
What does all this mean for Shop owners?
You should take a look at the linked price lists for EU and NA and if needed, adjust your margin starting May 2. You can then adjust your Shop’s prices according to your personal pricing strategy and business approach.
Have further questions or need support on the topic of price adjustment? We are always happy to help! Write us in the comments or in the forum!
wpDiscuz
How do we adjust our prices?
Please tell me the instruction to adjust the prices accordingly, thanks.
T-Shirts Inflation rate in 2020: -7.47% (negative)
T-Shirts Inflation rate in 2022: 0.77%
T-Shirts Inflation rate in 2022: 9.19%
The average inflation on t-shirts since the beginning of the pandemic is almost zero
“According to the U.S. Bureau of Labor Statistics, prices for men’s shirts and sweaters are 22.34% lower in 2022 versus 1997 (a $4.47 difference in value).
Between 1997 and 2022: Men’s shirts and sweaters experienced an average inflation rate of -1.01% per year. In other words, men’s shirts and sweaters costing $20 in the year 1997 would cost $15.53 in 2022 for an equivalent purchase. Compared to the overall inflation rate of 2.29% during this same period, inflation for men’s shirts and sweaters was significantly lower”
Source: https://www.in2013dollars.com/Men's-shirts-and-sweaters/price-inflation
And how do we adjust or prices? I can not find a tool for adjusting my prices.
I can not find a tool for adjusting my prices.
And how do we adjust or prices?
I thought they were set automatically.