Handling Fee Calculator

Calculate the right handling fee

Determine the accurate handling fee to charge on your orders with this free handling fee calculator. It's accurate and straightforward.

Time to prepare an order for shipment (in minutes)

Labor cost per hour

Handling fee

$ 0.00

What is a handling fee?

A handling fee is an additional fee that is charged to the customer on top of the order subtotal and other shipping charges. It is essentially the charge incurred to process the order.

What you need to know?

A handling fee includes fulfillment expenses like warehouse storage, packing, and labor costs.
A handling fee is charged per order and not per product and varies based on the type of delivery.
A handling fee is high for international deliveries as it includes insurance and additional packaging.

How is a handling fee calculated?

Calculating the handling fee is a straightforward process involving two components: labor costs and time incurred to prepare an order for shipment.

Handling fee =

{

Time to prepare an order for shipment

}

* Labor cost per hour

Why should you calculate handling fees?

Recovers fulfillment expenses

Handling fees are a great way to recover expenses incurred during order fulfillment. In this way, businesses account for their labor, packaging, and other costs involved.

Encourages pricing transparency

By clearly displaying the handling fee as a separate line item, businesses pave the way for transparent pricing strategy. In this way, customers are well aware of all the costs before making a purchase.

Increases profit margins

Handling fees can be waived when a specific minimum order amount has been met, encouraging buyers to purchase more and improving profit margins for businesses.

Frequently asked questions

Yes, you can charge a handling fee, especially if you're trying to cover the operational expenses involved in fulfilling an order.
It is usually the customers who pay the handling fee. The handling fee is charged as part of the product sales.
No, handling fees are not the same as delivery fees. Handling fees involve all other charges incurred to process the order other than the fee to deliver the product (which is what the delivery fee refers to).
As a business owner, you can choose between a flat handling fee and tiered handling fee structures. Determining handling fees depends on multiple factors like competitors, packing charges, delivery distance, and more.

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