A cost levied to cowl the prices related to processing, packaging, and getting ready an merchandise for cargo or service supply is a typical observe. This extra price accounts for the labor and supplies concerned past the direct value of the products or providers themselves. For instance, an internet retailer might add a supplemental cost to offset bills associated to warehouse operations, order achievement, and protecting packaging.
The inclusion of such a charge permits companies to recoup bills which might be usually troublesome to attribute on to particular person services or products. This may contribute to extra clear pricing buildings, probably enabling the bottom value of products to stay decrease. Traditionally, these expenses had been usually absorbed into the general price, however more and more, companies are itemizing them to supply prospects with a clearer understanding of the overall expenditure.