What Is a Handling Fee?

What Is a Handling Fee?

A handling fee is an amount charged to a customer on top of the purchase price and sales tax. Often, providers quote a shipping and handling fee with the order. The handling fee covers the cost for the packaging, repackaging and movement of goods.

Accurate pricing handling plays an important role in conveying value to customers. Handling fees can pose problems for businesses, as customers often do not see the tangible elements of handling like they do shipping charges, which are shown on a package. Some companies strategically offer free shipping and handling to attract more buyers and drive higher sales volume.