Can I add a handling fee to my shipping rates?

[michelleb]

I am thinking about adding a small handling fee to my shipping rates to help cover the cost of shipping supplies. I looked in the tutorials and saw these instructions:

When I go to edit the rate, I see nothing about a Handling fee:

[Erin · Accepted solution]

Hi there @michelleb. I'm happy to take a look into this with you!

Based on your screenshot it looks like you are trying to add a handling fee to a flat shipping rate. I believe you were looking at these steps here. These steps are for mark ups or discounts on calculated rates. The "Handling fee" section mentioned is only available for calculated rates since you have full control over the price of flat rates. If you are using calculated rates you should still see this option appear when you follow those steps.

If you want to continue using flat rates and add a handling fee, I would recommend you add the fee directly into your total shipping rate price, or even better, the price of your products. For example, if the rate is typically $4.90 and you want to add a handling fee of 2 dollars, you can increase the shipping rate price to $6.90. This will cover the shipping supplies cost and wouldn't add too much friction to your checkout. You could also mark up your products by the amount necessary to cover your shipping supplies. 

If you want the handling fee to specifically show up to customers as an additional fee, you may be able to do this with an app. I came across UpCharge: Surcharges & Fees by Mageworx here which should help out with this. That being said, I would definitely recommend adding the fee into the total shipping rate price or the price of your products themselves instead. The reason I say this is because the more additional fees customers see, the more likely they are to abandon their cart. Customers will generally notice a $2.00 handling fee more than they would a $2.00 mark up on a product. If a customer wants a product, $20 or $22 likely wouldn't make much of a difference when they are deciding whether or not to purchase it. However, a $2.00 additional fee that appears at checkout may make someone change their mind about buying a $20 product.

If you would like more information on shipping strategies and converting visitors into buyers I've included a few helpful blog posts below. I'd also be happy to hear more about your current strategies.

• Shipping Strategy: How to Offer Free, Flat Rate, and More
• 6 Ways to Reduce Shipping Costs for Small Business
• Ecommerce Conversion Rate: A Definitive Guide

Please let me know if you have any questions! 

[michelleb]

Okay, I got it. I'll look into the calculated shipping vs. flat rate. Thank you so much!