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A handling fee is a charge that is added to the cost of a product or service to cover the expenses associated with handling and processing the order. This fee is typically applied to online purchases, where the seller incurs additional costs for packaging, shipping, and handling the product.

The handling fee is designed to cover the costs of labor, materials, and other expenses associated with preparing the product for shipment. This includes the cost of packaging materials, such as boxes, tape, and labels, as well as the cost of labor to pack and ship the product.

In addition to covering the costs of handling and processing the order, the handling fee may also include a markup to generate additional revenue for the seller. This markup is typically small, but it can add up over time, especially for high-volume sellers.

The handling fee is typically disclosed to the buyer at the time of purchase, either as a separate line item or as part of the overall cost of the product. Some sellers may offer free shipping or waive the handling fee for orders over a certain amount, as a way to incentivize larger purchases.

Overall, the handling fee is an important component of the cost of doing business for online sellers. It helps to cover the costs associated with preparing and shipping products, while also generating additional revenue for the seller.