Finance Dictionary : Drip Pricing

Drip Pricing


Discover Drip Pricing, a pricing strategy that adds fees and charges incrementally during online shopping, potentially leading to unexpected costs for customers. Learn about the importance of transparent pricing in e-commerce.



Drip Pricing – A Pricing Strategy That Gradually Adds Fees and Charges to the Initially Presented Price


Drip pricing is a pricing strategy often employed in online shopping experiences, where a single, seemingly attractive price is presented to customers at the beginning. As customers progress through the transaction, incremental fees and charges are gradually added, or ‘dripped,’ often leading to a final price significantly higher than the initial one. This practice is commonly observed in various industries, such as travel and e-commerce.


Regulatory guidelines typically require that all fees and charges be disclosed at the outset of the online shopping process rather than being incrementally introduced. Drip pricing can sometimes result in customer dissatisfaction and lead to higher costs for a service or product than initially anticipated.


Understanding drip pricing is essential for consumers and businesses alike, as it pertains to transparency and fair pricing practices in e-commerce.


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