Tariffs and the Hidden Costs of Virtual Corporate Team Building
In today’s increasingly remote-first world, virtual meetings have become a staple of workplace collaboration. With this shift, many companies are investing in corporate team building activities to keep employees engaged, foster camaraderie, and maintain morale across locations. From online escape rooms to holiday gingerbread house decorating competitions, these fun experiences are reshaping what it means to connect as a team in the digital era.
However, enter a new challenge … tariffs and international shipping. The solution is to look for companies that offer local international sourcing.
The Rise of Virtual Experiences
As in-person interactions declined, organizations turned to creative solutions. Companies like Sweetology, known for their customizable, hands-on sweet treat kits, quickly gained popularity for offering engaging virtual experiences. Employees receive kits at home, then join a virtual meeting to decorate cookies together—a shared activity that blends fun with team spirit.
But for teams spread across borders, particularly in global corporations, the costs can quickly spiral.
Tariffs: The Unexpected Line Item on Your Team Building Budget
When sending physical materials—like baking kits, snacks, or merchandise—across international lines, businesses often face unexpected tariffs, duties, and customs fees. These can significantly inflate the budget of what was meant to be a cost-effective team building activity.
For example, a U.S.-based company using Sweetology kits for a virtual event might budget $50 per participant. Add in international shipping, customs processing delays, and destination country tariffs, and suddenly that per-person cost could double—or worse, kits might arrive late or not at all.
Creative Solutions to Stay on Budget
So how can corporations ensure that team building remains inclusive, fun, and financially sustainable?
-
Digital-Only Activities: Consider virtual experiences that require no physical shipping—like online games, trivia challenges, or guided meditation sessions.
-
Localized Vendors: Work with partners who can source or deliver kits regionally. Sweetology for example, may be able to collaborate with local bakeries abroad to provide similar kits without cross-border logistics.
-
Reimbursement Models: Let international team members source their own supplies locally with a reimbursement cap. This avoids shipping altogether while allowing participation.
-
Virtual-Only Gift Cards: Instead of shipping goods, send gift cards or vouchers that allow employees to treat themselves or order locally.