Quick Answer
Retailers in 10 U.S. states are legally required to charge bottle deposit fees, with significant penalties for non-compliance. Shopify does not have a built-in way to apply these fees. The best way to ensure compliance is by using an app like Magical Product Fees, which automatically applies bottle deposit fees at checkout as a separate line item, ensuring full transparency and legal compliance.
Detailed Answer
Bottle deposit laws, known as Bottle Bills, are refundable fees added to beverage containers to encourage recycling. These deposits are typically 5 – 10¢ per container, and customers pay the deposit upfront and receive a refund when they return empty bottles and cans.
For Shopify merchants in bottle bill states, compliance is mandatory, but Shopify does not provide a built-in feature to apply these fees. There are a few workarounds that will allow you to add bottle deposit fees on your Shopify store, but each comes with drawbacks:
- You could include the fee in product prices, but this hides the charge and can create compliance risks.
- You could add fees to shipping rates, but this does not scale with quantity, leading to incorrect charges.
- You could manually create a fee product and ask customers to add it to their orders, but most customers will avoid adding the fee, making this method extremely unreliable.
The best way to handle bottle deposit fees is to use Magical Product Fees, which:
- Automatically applies the correct deposit fee per state regulations.
- Shows the fee as a separate line item to ensure transparency.
- Tracks and reports fees for easy compliance and tax filing.
Video Explainer
Understanding bottle deposit fees and how to charge them on Shopify can feel overwhelming. I made a short video that explains the quick and easy way to add bottle deposit fees to your store.
Supporting Answers
What Are Bottle Deposit Fees?
Bottle deposit fees are small charges added to beverage purchases. These fees incentivize recycling by providing a refund when customers return empty containers. States with bottle deposit laws see higher recycling rates (60–90%) compared to states without them (20–40%).
Which U.S. States Require Bottle Deposit Fees?
Currently, 10 states enforce bottle deposit laws:
| State | Deposit Fee | Eligible Containers |
| California (CRV) | 5¢ (<24oz), 10¢ (≥24oz), 25¢ (wine pouches) | Aluminum, glass, plastic, bi-metal |
| Connecticut | 10¢ | Soda, beer, hard seltzer, juice, water |
| Hawaii | 5¢ | Soda, juice, tea, coffee, sports drinks |
| Iowa | 5¢ | Beer, soft drinks, carbonated beverages |
| Maine | 5¢ (small bottles), 15¢ (wine & liquor) | All beverages, including spirits |
| Massachusetts | 5¢ | Soda, beer, malt beverages |
| Michigan | 10¢ | Soda, beer, mineral water |
| New York | 5¢ | Soda, beer, energy drinks, flavored water |
| Oregon | 5¢ | Water, soda, beer, malt beverages |
| Vermont | 5¢ (small bottles), 15¢ (liquor) | Beer, soda, wine coolers, spirits |
Failing to comply with these laws can result in heavy fines. In 2018, a beverage distributor in New Jersey was fined $550,000 for failing to charge New York’s 5¢ bottle deposit fee.
How to Add Bottle Deposit Fees to Your Shopify Store
Since Shopify does not support deposit fees natively, there are three main approaches to adding them:
Workarounds That Don’t Work Well:
- Include the fee in the product price, but this hides the charge and creates compliance risks.
- Add fees to shipping rates, but this doesn’t scale properly with quantity.
- Manually creating a fee product, but customers may not add it, leading to non-compliance.
The best solution is to use an app like Magical Product Fees to easily charge bottle deposits correctly.
- Automatically apply the correct deposit fee per item and location.
- Display the fee separately at checkout.
- Track fees for easy reporting and compliance.
Real-Life Experiences
“I live in a region with a mandatory bottle fee, and I love Hendrick’s gin. When I return my bottles I almost always grab another bottle of Hendrick’s while I’m there to put away in my freezer, so I truly believe bottle programs can boost patronage, too!”
-Kyle Godon, Shopify App Expert
Key Takeaway
If you sell beverages in one of the ten bottle bill states, charging deposit fees is mandatory. Shopify does not provide built-in support, and manual solutions can create compliance risks.
The best way to handle this is with an app like Magical Product Fees, which:
- Automatically applies deposit fees based on state laws.
- Ensures transparency by displaying fees separately.
- Simplifies reporting to help with compliance.
Don’t risk non-compliance or fines. Try Magical Product Fees today to automate bottle deposit fees on your Shopify store and stay compliant worry-free.
Magical Product Fees
The Magical Product Fees app is a fast and easy way to build, customize, and attach fees to products or entire orders.