How are hidden costs commonly applied in e-commerce?

Hidden costs in e-commerce often manifest as extra charges that are revealed during the checkout process. This practice can lead to a customer's initial perception of a purchase being more affordable than it actually turns out to be once additional costs—such as shipping fees, taxes, or handling charges—are applied.

By adding these unexpected fees at checkout, e-commerce businesses can affect the customer's final decision before completing the purchase. This strategy can be detrimental to customer trust and satisfaction, as transparency is key in online shopping. While some businesses strive for transparent pricing or showcase all expenses upfront, hidden costs are generally the opposite of these practices. This reinforces the importance of clearly communicating all costs involved to foster trust and encourage repeat business. Other choices focus on more straightforward and honest pricing strategies, which contrast with the practice of introducing additional fees late in the transaction process.