Zvi Schreiber

Normally, on average, shipping is about 5% of the price of an imported good.

When you buy a product in the shop, most of them are imported.

And on average, shipping is about 5%.

Now, of course, if you buy a really big, cheap toy...

then shipping would be a much bigger proportion.

If you buy an iPhone or some jewelry, which is small and valuable, then the shipping is a smaller proportion.

So it does depend on the product.

But if we take an average, it's about 5%.

And therefore, if shipping goes up 10%, 20%, it doesn't make a big difference.

But when shipping goes up 200% or more...

then that's 10% on the price of the good.

Now, the retailer may eat some of that.

They may absorb some of that.

But yeah, you're going to see a significant impact on prices.

And likewise, this may not last.

There may be a couple more ships come into use, and maybe the prices crash.

And then that can make prices cheaper.

So it could be that some of the inflation we're seeing right now in the US may be transitory-related shipping costs, which will eventually come back down.

We do actually, yeah, because our revenue is a percentage of the transactions that we bring in.

And so when the prices are higher, then we're making more revenue.