By definition, a handling fee is what a customer is charged in order to cover expenses not related to the product or shipping. Instead, handling fees take into account more of the fulfillment process, including things like: Product storage costs. Packaging costs (including shipping materials)
How do you calculate handling fees?
How to calculate handling fees
- Determine the average number of minutes it takes to prepare each item for shipping.
- Divide the result by 60.
- Multiply the result by your hourly rate.
What is handling fee on Shopify?
Leveraged by both B2C or B2B businesses, handling fee is the number one additional fee that allows passing on fulfillment costs to a customer. For you as a merchant, it allows absorbing costs related to order assembly, packaging, shipping, and avoiding profit losses.
