Handling Fee
Definition
A handling fee is an extra charge added to an order during checkout. It is used to cover packaging, labor, or special processing costs that are not part of the product price or shipping cost.
Handling fees can be fixed, percentage-based, or vary depending on cart conditions.
Good or Bad?
Good when clearly explained and justified
Bad when hidden, excessive, or added without transparency
Why It Matters?
Handling fees help cover real business costs and protect your margins. For example, fragile or oversized products may need extra care in packaging, and the fee reflects that effort.
If customers are not aware of the fee or it feels unfair, it can hurt trust or lead to abandoned carts.
Common Mistakes
- Adding a fee without any explanation
- Applying the fee to all products even if it only applies to specific ones
- Not showing the fee breakdown before payment
- Making the fee too high and discouraging purchases
How to Improve It?
- Clearly explain why the fee is added and when it applies
- Keep it reasonable and aligned with real packaging or handling costs
- Use conditional logic to apply fees only when needed
- Display the fee as a separate line item at checkout
Real-World Example
An online store that sells handmade ceramics adds a 3 dollar handling fee when a customer orders more than two fragile items.
The fee appears clearly at checkout with the label “Packaging and Handling Fee” and ensures safer delivery.
Related Terms
- Shipping Fee
- Checkout Rules
- Order Charges
- Extra Fees
FAQs
What is a handling fee?
It is an additional cost added at checkout to cover packaging, labor, or other non-product expenses.
Is it legal to charge a handling fee?
Yes, as long as it is clearly displayed and not deceptive.
Can I set different handling fees for different products?
Yes. Some plugins allow you to apply fees by product, category, or quantity.
How do I avoid upsetting customers with a handling fee?
Be transparent and use a clear label. Explain the reason for the fee and avoid surprise charges.
