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What Is a Handling Fee on Shopify?

Last updated on October 1, 2022 @ 6:33 pm

When you sell products online, you may be charged a handling fee by your shopping cart software or payment processor. This fee is intended to cover the costs associated with processing and delivering your order.

Some online shoppers are unaware of handling fees, and may be surprised to see them listed on their final invoice. If you’re selling products online, it’s important to be up front about any fees associated with your orders, so that your customers know what to expect.

What is a handling fee on Shopify

A handling fee on Shopify is a charge assessed by the shopping cart software or payment processor in order to cover the costs associated with processing and delivering an order. This type of fee is typically levied on orders that are placed online, and may come as a surprise to shoppers who are not aware of it in advance.

PRO TIP: A handling fee is a charge assessed by a merchant for the costs associated with physically preparing and shipping an order. This fee is separate from the shipping charge, which is assessed by the carrier. Handling fees are generally assessed as a flat rate or percentage of the order total.

While most Shopify merchants do not charge a handling fee, some choose to do so in order to offset their shipping costs. If you are considering adding a handling fee to your Shopify store, we recommend clearly disclosing this fee to your customers upfront. Otherwise, you risk angering and alienating your customer base.

Why do I need to pay a handling fee

Handling fees are intended to help offset the costs associated with fulfilling an order, such as packaging materials, shipping fees, and labor costs. By adding this type of fee to your prices, you can ensure that you’re able to cover all of the necessary expenses without losing money on each sale.

How can I avoid paying a handling fee

In most cases, it’s not possible to avoid paying a handling fee altogether. However, there are some things you can do to minimize the impact of this type of charge on your business. For example, you can offer free shipping on orders over a certain amount, or include the cost of shipping in your product prices.

In conclusion, a handling fee is a charge assessed by the shopping cart software or payment processor in order to cover the costs associated with processing and delivering an order.

However, handling fees are intended to help offset the costs associated with fulfilling an order, such as packaging materials, shipping fees, and labor costs.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.