Drip Pricing: Charges That You Pay But Don't Know About

What is Drip Pricing?

Drip Pricing is a deceptive tactic where additional charges, such as handling and shipping fees, are gradually revealed during the purchasing process, leading consumers to pay more than initially expected.

Handling charges

Handling charges, often undisclosed until checkout, are fees imposed by sellers to cover the cost of preparing and packaging the product for shipment, adding to the final price consumers pay.

Shipping Charges

Shipping charges, another aspect of drip pricing, are often concealed until the final stages of the transaction, catching consumers off guard with unexpected fees for the delivery of their purchase.

Donation for cause

Under the guise of charity, some sellers incorporate optional donations for causes during checkout, contributing to the drip pricing phenomenon by inflating the final price consumers pay.

Platform price

The platform price, initially advertised to lure consumers, often fails to include additional fees and charges, resulting in a higher total cost than what is initially presented, highlighting the need for transparency and consumer awareness regarding drip pricing practices.

Reservation Fees

Often encountered in the travel and hospitality industry, reservation fees are additional charges imposed when booking accommodations, tickets, or services, which may not be initially disclosed to consumers until they proceed with the reservation process.

Processing Fees

These charges, commonly applied in various transactions such as online purchases, ticket bookings, or financial transactions, cover the cost of processing the transaction and may be presented to consumers at the final stage of checkout, contributing to drip pricing tactics.