Guide to Shopify Product Fees

Learn how to add product fees to your Shopify store, and why it makes sense to use an app.

Product fees are additional charges which you can add on top of your existing Shopify products or services prices, making it easy to collect additional revenue to cover a wide range of business expenses. There are many types of fees, and a wide range of reasons why you would choose to apply fees to your products or services.

Our guide breaks down the essentials so that you can better understand how to get started with charging and collecting product fees on your Shopify store. We even compare the best Shopify apps so that you can choose the app which is a perfect fit for your store.

What is a product fee?

A product fee is an add-on charge which is applied on top of the retail price of a product or service.

These fees can be mandatory – sometimes required by law – or optional. Retailers can choose to make these fees visible to the customer, hidden until checkout, or simply build the cost of these fees into the selling price of their products or services. 

In our beginners guide to product fees, learn about not only what they are, but what categories of them exist, what types merchants use, and common reasons for why they are used.

A product fee is an add-on charge which is applied on top of the retail price of a product or service.

Types of product fees

There are several ways product fees can be added to products in your Shopify store. Fees can be required or optional, and you can decide whether or not they’re visible to your customers.

Explore the types of Shopify product fees in the list below:

1. Mandatory product fees are fees added onto products to charge and collect additional money from your customers. Customers are required to pay these fees.
2. Optional product fees are usually for tips, donations, and other fees considered optional by the customer. They can be applied to single products or groups of products.
3. Visible product fees are clearly visible in the retail list price. They are usually shown before taxes and will appear on the invoice of any purchase for transparency.
4. Hidden fees are product fees that are applied at checkout. This practice tends to lead to increased cart abandonment and fewer overall sales.
5. Visible Inclusive Fees are not added on top of the product as they are built into the price of the product.

Examples of product fees

The cost and reasoning for different types of product fees can vary. Explore the top five examples of Shopify product fees in the list below:

1. Eco Fees, also known as Environmental Handling Fees (EHF), are charged to comply with government regulations. They are meant to assist with the safe and responsible managementand disposal of products.
2. Deposit Fees are typically charged for recyclable containers and are eligible for refund.
3. Handling fees are charged by businesses to cover expenses unassociated with the product or shipping on an order.
4. Installation Fees are typically charged when customers require additional assistance to install a product.
5. Processing Fees are usually charged to cover expenses like credit card processing fees.

Reasons to use product fees

Some fees are required for legal reasons while others are optional or store-specific. The reasons to use product fees on Shopify generally fall into one of three categories:

1. Comply with local laws in which stores are required to collect fees based on which products or services they are selling.
2. Collect donations for causes or charities. These fees can be layered onto product fees, or shopping cart fees for Shopify.
3. Cover processing fees such as credit card handling fees. Most merchants will want these fees to be visible.

How to add product fees on your Shopify store

There are two distinct paths to adding product fees onto a Shopify store including some built in options (native solutions), and more flexible options which use Shopify Apps to better manage your product fees.

Native Shopify solutions for product fees

While Shopify lacks true native support for product fees due to their lack of a wide range of options merchants require to properly manage them, some basic and manual solutions do exist that may work for you:

1. Mark up or discount calculated shipping rates. This is an additional fee or mark up on products and can be added to calculated shipping rates. To do this go to Settings > Shipping and delivery section of the Shopify admin. This can be done as long as tax isn’t being charged on shipping.
2. Add the fee into the cost of the product manually as an inclusive fee.
3. Add the fee into product variants if the product fee is different based on the variant of a product or the quantity. 
4. Add fee products and ask customers to manually add them. To do this, create products purpose-built as a fee. Then, ask customers to manually add these fees to their cart.

Shopify app solutions for product fees

Shopify Apps enable sophisticated and customized solutions to be developed that fit the needs of any merchant. There are a few distinct approaches that can be taken when considering how to add product fees with a Shopify app:

1. Develop a new app: A brand new app that you can control. Customizable in every way, but very expensive and slow to implement.
2. Use a Product Option app to add product fees: Apps allow for a wide range of functionality to be added on individual product pages such as mandatory checkboxes, radio buttons, or another kind of selector that will add a charge to an order.

If you want to know what apps are available, we’ve compared 5 Best Shopify Apps for Surcharges in this guide.

Shopify Apps enable sophisticated and customized solutions to be developed that fit the needs of any merchant.

Examples of how products fees are used in the real world.

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Additional types of product fees you might find on Shopify

• Environmental Handling Fees are charges applied to the sale of certain products to cover the cost of their proper disposal or recycling. These fees help fund programs that manage the environmental impact of these products, such as electronics or hazardous materials. This fee is commonly found on electronic items and you would regularly see this if you purchased from Best Buy, Home Depot, or even on Amazon.com
• A Bottle Deposit is a commonly used product surcharge used typically by alcoholic beverage or independent shops to collect a deposit on a bottle which is often refundable if the bottle is returned.
• Vape Excise Tax, also known as Vape Fees, are additional taxes imposed on the sale of vaping products popular in the tobacco and the cannabis industry. These surcharges are intended to reduce the consumption of tobacco and cannabis products and generate revenue for public health programs. These fees and taxes differ from state to state and from province to province.
• PFAND is a deposit scheme in some countries, particularly in Germany, where a surcharge is added to the price of bottled beverages. The deposit is refunded when the empty bottle is returned for recycling. This type of PFAND fee is commonly used for German micro breweries and similar bottle retailers on Shopify.
• Mattress Recycling Fees are charges added to the purchase of new mattresses to cover the cost of recycling old ones. This helps ensure that mattresses are disposed of in an environmentally friendly manner. We have written an article where you can find out how to add mattress recycling fees on Shopify.
• An Automotive Core Deposit is a refundable charge applied to the purchase of certain auto parts, such as batteries or alternators. The deposit is refunded when the old part (the “core”) is returned for recycling or remanufacturing. The cost of a core deposit can be a significant value depending on the particular automotive part you purchase.
• Express Handling Fees are additional charges for expedited processing and delivery of orders. These types of fees are often offered by Shopify store owners to give their customers the opportunity pay for an expedited handling of their purchase, often in addition to their choice of express shipping. This is a way to ensure their order is packed and shipped as fast as possible.
• Gift Wrapping Charge
• Electronics Recycling Fee (E-waste Fee)
• Tire Disposal Fee
• Hazardous Material Fee
• Battery Recycling Fee
• Packaging Fee
• Shipping Insurance Fee
• Service Fee
• Assembly Fee
• White Glove Delivery Fee
• Convenience Fee (for using certain payment methods)
• Resort Fee (for booking travel packages)
• Regulatory Recovery Fee

Discover why adding product fees to Shopify with an app is the easiest way to save money and stay compliant

If you run a Shopify store and are trying to figure out the best way to charge product fees, look no further: the answer is to use a Shopify app.

Senior ecommerce experts on our team at Magical apps have compiled the top five reasons to use a Shopify app to add product fees, describing why it is the best way to help your business make more money and stay compliant with local laws.

Benefits of using Shopify Product Fees

1. Add fees to cover business expenses. Product fees help your business recover profits that would otherwise be lost to expenses.
2. Stay in compliance with local laws. Your business may be required by law to charge visible product fees, such as eco fees, on some of your products or services.
3. Improve communication and transparency with your customers. Inform customers earlier in the shopping process–before they even add a product to their cart–of any additional fees.
4. Lack of native Shopify support for fees. Workarounds for the lack of native support are littered with issues that make them too difficult for most merchants to implement.
5. It’s easy to charge fees with apps. Benefit from charging mandatory fees with little trade-off. Apps make it easy to display and manage fees. They also help communicate to customers why fees are being charged.

How to set up product fees with Magical Product Fees

Magical Product Fees allows you to add fees to your products and build fees based on conditions you set. It works with any theme.

Install and setup is easy. Our guide will walk you through how to setup product fees on Shopify with Magical Product Fees from beginning to end in detail.

Read below for an overview of the process and some possible solutions to common issues.

App install instructions

Installing the app in Shopify is easy. Click Install on the Magical Product Fees app listing.

App setup instructions

​​The guided setup process within the app ensures the first fee will be active in minutes. Open the app in within the Shopify store to view the detailed instructions for each of the following steps:

1. Create fee: Go to Online Store > Apps, select Magical Product Fees. Then click Create Fee, enter a title and price, and update the Applies to and Rules sections. Finally, click Save.
2. Activate app embed block: Go to Online Store > Themes, click Customize, click Theme Settings, and then App Embeds tab. Click the Magical Fees toggle to activate it. 
3. Disable Dynamic Checkout: Go to Online Store > Themes, click Customize, select Product Pages, uncheck Show dynamic checkout button, then click Save.

All App features instructions

1. Enable Checkout UI extension (Growth Only): Go to Settings > Checkout and accounts. Select the checkout page and click Add App. In the Apps Available for This Page section, click Magical Fees and click the cog icon. From there, click the current layout to open the checkout layout options, and then click Click Three-page Checkout if not already selected. 
2. Edit fee: Go to Online Store > Apps and select Magical Product Fees. Then, click Edit Fee.
3. Apply custom conditions: Under “Custom Conditions” select whether products need to match all conditions or any condition to include this fee. Click Add Condition, then use the drop-down lists to set how a product needs to match the condition to include this fee. Finally, click save.
4. Delete fee: Go to Online Store > Apps, select Magical Product Fees, click Edit Fee, then click Delete.
5. Deactivate the app embed block: Go to Online Store > Themes, Customize the theme, click Theme Settings, click the Apps embed tab, and click the toggle to deactivate it.
6. Add Fees total to theme template: Go to Online Store > Themes, on the theme you want to edit click Actions > Edit code, under under the Templates header, click into the cart.liquid file, locate where you would like the Fees total to appear, paste the code: <fees-total></fees-total> and save.
7. Add Associated fees to theme template: Go to Online Store > Themes, on the theme you want to edit click Actions > Edit code, under under the Templates header, click into the cart.liquid file, locate where you would like the Fees total to appear, paste the code: <associated-fees></associated-fees> and save.
8. Translate or Customize Fee Message with the Theme Editor (Fees total or Associated fees app blocks): Go to Online Store > Theme, click Customize on the theme you want to edit, open the drop-down menu, select Products (Associated fees app block) or Cart (Fees total app block), and then select the template. In the information field, input your translated or customized message. Use FEE_TITLE and FEE_PRICE to display the title and price of the fee.
9. Translate or Customize Fee “Associated fees” app block message in theme template: Go to Online Store > Themes, click Actions > Edit code on the theme you want to edit, under the Templates header, click into the product.liquid file locate where you would like the Associated fees to appear and paste this code. Customize or translate the text in between the ” marks. Do not customize “FEE_TITLE” or “FEE_PRICE”.
10. Translate or Customize Fee “Fees total” app block message in theme template: Go to Online Store > Themes, click Actions > Edit code on the theme you want to edit, under the Templates header, click into the product.liquid file locate where you would like the Associated fees to appear and paste this code. Customize or translate the text in between the ” marks. Do not customize “FEE_TITLE” or “FEE_PRICE”. 
11. Apply fees in Shopify POS: You must add the Apply fee App link to your home screen. Once all items are added to the order, tap the Apply fees tile to add the applicable fees. If an order is updated, tap the Apply fees tile again. On the home screen of the Shopify POS app, tap Add tile within the grid, tap App, tap Magical Fees, tap Add beside Apply fees, and save.

Possible solutions to common issues

We’ve compiled some troubleshooting methods for common issues merchants encounter when using the Magical Product Fees app.

1. I am not seeing the expected fees when I add a product to the cart. Check to ensure that there are fees listed on the Fees page of the app, and that the app embed block is enabled. If using custom conditions, check to ensure that the Products Must Match option on the fee is not set to all conditions when you meant to match any condition. If the fee applies to custom conditions, double-check that the product matches the conditions set on the fee.
2. I am not seeing a preview of the fee in the theme editor. Enable the app embed block before adding the product to the cart. If it’s still not visible, refer to the troubleshooting method for “I am not seeing the expected fees when I add a product to the cart” above.
3. I see fees as products on the front-end of the online store. Fees are created as Shopify products and designed not to show in search results. One possible solution to hide it from product listing pages is to create a new collection that includes all products except for products with the “product type” of “fee”. Then, link to that instead of an “all products” collection.
4. Fees are normally charged on my online store, but a small percentage are not charged on orders that they should have been. Under normal circumstances, fees are correctly applied if the app is configured and tested. Some orders may not include fees due to potential hacks or glitches. Ensure customers see fees on product and cart pages. If a customer bypasses fees, cancel the order and ask them to reorder.

Magical Product Fees FAQs

Discover answers to frequently asked questions about Magical Product Fees for Shopify.

1. Can I charge percentage-based fee? Yes, percentage-based fees can be applied to the order subtotal on both plans. Percentage-based fees can also be applied to the order total, but only on our Growth plan for Shopify Plus users.
2. Does this app work with accelerated checkout methods? Product Fees are compatible with the checkout, but not the cart. Cart Fees are compatible on both checkout and cart which is available on the Growth Plan for Shopify Plus users.
3. Does this app work with dynamic checkout buttons? On the Starter Plan, product fees are NOT compatible with dynamic checkout buttons, however they are compatible on the Growth Plan with Shopify Plus.
4. Does this app work with other apps that interact with the cart or checkout?  Magical Product Fees generally does not work with other apps that interact with the cart or checkout. 
5. Does this app work with subscription apps? Magical Product Fees does not currently work with other apps that offer product subscriptions. 
6. Does this app work with all Sales Channels? Fees will only be applied to orders placed through your Online Store.
7. Does this app integrate with Shopify POS (Point of Sale)? Yes. Fees can be created and edited through the Shopify POS.
8. Does this app work with Shopify B2B? Yes, Create a fee, open it in Products in Shopify admin, check ‘This is a physical product’ under Shipping, and save.
9. How does this app work? The addition of mandatory fees is enabled and applied to products in the cart with an app embed block. The app creates fee products that are applied to products.
10. Can I control how fees are applied? Yes. You can define conditions for fees that match them to other products based on a wide variety of criteria.
11. What kind of fees can I add to my products? You can add any type of fixed fee required for products in your online store.
12. Is there a limit on the number of fees I can create? Yes. A maximum of 50 fees can be added to the library in the app. 
13. Can I charge fees based on customer shipping location? Yes. However, location-based fees can only be charged while on the Growth Plan, which is currently limited to Shopify Plus merchants.
14. Can I charge fees based on the payment method used for an order? For example, can my fee be charged only if a credit card is used to pay for the order? Fees are applied based on the products they are set to be applicable to and the set “Rules”, not the payment method in use.
15. Which languages is this app translated in? The theme app extension (Starter Plan Features) includes English, German, Spanish, Norwegian, and Swedish. Checkout UI extensions only (Growth Plan Features) include English, Danish, and German.

Compare the best Shopify product fees and surcharges apps

Shopify’s lack of true native support for the addition of product fees on their stores often pushes merchants to consider using a purpose-built Shopify app instead. But with several options available, which app is the best app for charging product fees on Shopify?

The 5 Best Shopify Apps for Surcharges

Discover the five best Shopify apps for surcharges that stores can use to meet all of their product fee needs. Get detailed overviews about these apps, and see what users have to say about them.

The Best Product Fees Shopify Apps:

1. Magical Product Fees – Best overall app but has limited compatibility with upsell and bundle apps
2. UpCharge: Surcharges & Fees – Most customizable but isn’t integrated with POS
3. Canteen ‑ Integrated with Zapiet and Recharge but requires HTML and CSS competency
4. Pfand ‑ Deposit & Cart Fee – Prevents fees from removal but fees are visible as products in cart
5. CHARGIFY Surcharge & Order Fee – More affordable but lacks customization

Magical Product Fees vs. Canteen

In this comparison, see which is the best app for charging fees on Shopify: the Magical Product Fees app or the Canteen Deposits and Fees app.

We compare their features, pricing, and reviews and outline how you can determine which one is right for your store:

1. What’s the difference between Magical Product Fees and Canteen? Magical Product Fees offers easy setup and video tutorials. Canteen supports Shopify POS, but customers need HTML knowledge to set up Canteen themselves.
2. Which Shopify product fee app offers more value for the price? Magical Product Fees offers more value for the price with its lower cost and ease of use. Canteen, although it has additional support for Shopify POS, is more expensive.
3. What are customers saying about Magical Product Fees and Canteen? Both apps feature good to excellent overall ratings with users typically praising both the app and the quality of the support they received from the developer.
4. What is the best Shopify app for charging product fees? Magical Product Fees is right for you if you’re are a cost-conscious, value high performance, have specific targeting needs, don’t have any coding experience, and want a platform that grows with you. 

Conclusion

Adding product fees to your Shopify store with an app can help boost revenue by allowing you to cover additional costs, offer premium services, or provide customized pricing options. 

If you’re ready to add product fees to your website, using an app to add and manage these fees is the best way to do it for most merchants. Dedicated apps will usually integrate seamlessly and provide a straightforward interface to manage fees without requiring any coding knowledge. 

Apps will help you ensure fees are applied automatically across your store in the way you want them to be. This makes pricing errors less likely to happen.

To add product fees to your store, we recommend using our app Magical Product Fees. This app is easy to install and use and comes with deep rules and conditions to customize how and when your fees get applied. Our support team is responsive and happy to help you when you need it.

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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.