Jake Medwell is a well known entrepreneur who graduated from the University of Southern California back in 2011. Jake is a consumer and business investment specialist. He also oversees the logistics and transportation division of 8VC. Jake is an accomplished entrepreneur who has spent his career launching and growing businesses.
Compared to 2019, we now see that transportation costs are up by 20%. Subsequently, it is expected that people will start to question when this rise will begin to drive inflation. If anyone is worried about inflation, they should focus on the shelves rather than the freight costs. This is because, compared to the high cost of marketing and retail markups, the impact of the higher transportation cost is quite small and is barely something which the consumer is worried about.
Compared to the growth of the economy over the last 40 years, logistics costs have decreased, and supply chains have become far more efficient. This is due to a lot of products being delivered within hours or a few days, compared to the time where people had to sit down and await products they ordered six to eight weeks prior.
Consumers would see less of this at retail even if total transportation costs doubled. The reason for this is that most branded retail items have such a high level of marketing and retailer markup, these costs can be absorbed.
Learn more about Jake: https://medium.com/@jakemedwell/about