Handling Fees 101: How to Protect Your Profits in eCommerce
From covering packaging costs to boosting your bottom line, handling fees are a smart way for eCommerce sellers to stay profitable.
By ShipTime
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Running an online store means more than just listing products — it means factoring in every cost that goes into getting an order out the door. One often overlooked strategy for keeping your business profitable? Handling fees.
What is a Handling Fee?
A handling fee is an additional charge that helps cover the time, materials, and effort required to prepare a package for shipping. This can include:
– Packing materials (boxes, tape, bubble wrap)
– Labour costs for fulfillment
– Storage or special packaging needs
It’s not about overcharging — it’s about ensuring your actual costs are accounted for.
Why Should You Add Handling Fees?
Protect Your Margins: Small expenses add up fast. Handling fees help offset those hidden costs.
Build a Sustainable Model: Especially on low-ticket items, every dollar counts.
Set Expectations: Whether you choose to roll handling costs into your shipping rates or display them separately at checkout, giving customers a clear picture of the total cost helps build confidence and avoid surprises.
How to Add Handling Fees with ShipTime
If you’re using ShipTime with an eCommerce integration and have enabled Live Rates with Shopify, WooCommerce, BigCommerce, Ecwid and more, adding a handling fee is quick and easy. You can:
– Set a flat-rate handling fee – Set handling fee as a percentageÂ
This flexibility allows you to balance customer satisfaction with profitability.
You have the flexibility to either factor handling costs into your product pricing or display them separately at checkout—it’s your choice. If you choose to show them, a note like “Includes handling for packaging and order preparation” can help manage expectations. With ShipTime, any applicable handling fees will already be included in the shipping rate shown at checkout, so there are no surprises for your customers.
With ShipTime, you get more than discounted rates — you get the tools to run your shipping operations like a pro. And handling fees is just one way we help eCommerce sellers ship smarter and save more.
About ShipTime:
Ship Smarter – with ShipTime, we are a true partner beyond just discounted rates. We provide a best in class platform packed with features and backed by our legendary Heroic Support™ team.
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You can sleep easy with ShipTime’s best-in-class customer care. Our bilingual team is available by phone, live chat, or email Monday – Friday from 8:30AM to 8PM EST.