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Dear Yahoo!:
When I'm charged for "shipping and handling," exactly what "handling" am I paying for?
Cheap Tate
Dear Tate:

Yeah, what's that all about? Are they paying Crazy Johnny in shipping to fondle the merchandise before sending it off?

Given the explosion of Internet commerce, whether and what to charge for "handling" can be a big issue. A simple dictionary definition tells us in this context the word means "the process of packing and distributing merchandise." An Entrepeneur.com article explains the term as "...charges (for) both the cost of packing materials and the cost of labor to pack items." And in the eBay Packaging & Shipping forum, one post describes handling as a charge used by sellers to offset costs associated with packing materials (mmmmm, styrofoam peanuts), labor, and miscellaneous expenses like storage.

This is not to say that handling charges are completely uncontroversial. The online auction community frequently discusses this issue. Many feel sellers should view handling expenses as part of the cost of doing business. Some companies may actually ratchet up handling charges; Entrepeneur.com cautions businesses not to use the handling fee as a way to make a profit. We also found several complaints about the practice of advertising "free shipping" while conveniently failing to mention the handling charge.

Some businesses remind customers there is always a handling charge, whether itemized or not, as the cost of packaging, billing, storage, labor, etc. is routinely factored into the product's price.

So there it is, signed, sealed, delivered. Now if we only knew what a re-stocking fee was. Quick, someone write in.

 
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