Shipping Labels 101: How to Make Shipping Labels and More

A shipping label… it’s just a sticker on a package, right? Actually, things aren’t quite that simple. As an e-commerce seller, have you ever stopped to really think about just how important a shipping label is? Your shipping labels are a crucial element of your supply chain, so having a good understanding of their value, and how to make a shipping label, is critical.

“Shipping labels contain critical information that is essential to ensuring a package reaches its intended destination on-time, in good condition, and gets to the right person. Errors in a package’s label can prevent successful shipping and delivery.”

Rick Nelson, CEO, The Fulfillment Lab

In this blog, we’ll take a look at the anatomy of a shipping label, share tips on how to print a shipping label, and much more. Ready to get started? Keep reading!

What is a Shipping Label?

A shipping label, sometimes called a package label, identifies many things about your package, including:

Point of origin
Destination
Weight and size dimensions
Carrier’s name
Sender and receiver information
Specialized instructions
Customer care information
QR code and barcodes
Payment status (if applicable)
And more

These labels are used by warehousing and shipping professionals, and their machine counterparts, to understand where your package came from, where it needs to go, and what stops it may have made along the way.

Without a clear shipping label, packages can be delayed in transit, delivered to the wrong address, or lost completely. Any of these scenarios may lead to either a financial loss or a loss of customer trust, which makes the shipping label extremely important!

Example of a Shipping Label

Shipping labels between the major carriers—USPS, FedEx, and UPS—all have slight variations, but they generally contain the same information. Here’s a shipping label example that highlights the various elements you’ll see on a carrier’s label.

TFL_012_MISC - Shipping Label Example-1

1. Sender Name & Address, or return address, where it will go in case of non-delivery.

2. Recipient Name & Address, the package's destination.

3. Package Weight, including the item being shipped and the box/packaging.

4. Unidirectional Code, or maxicode, designed to be read by a machine in any direction.

5. Postal Barcode, or IMpb code, the recipient’s scannable zip code.

6. Service Type, the method of shipping, i.e. Standard, Express, Priority, etc.

7. Routing Number, which informs sorting where to route the package.

8. Tracking Number, which customers can use to track the package online.

If this seems daunting for those of you just starting out, don’t worry—much of this information will be automatically generated by the carrier or proprietary software!

How to Create a Shipping Label

Even if you’re only shipping a few packages a week, purchasing labels at your carrier’s office is throwing away money because you’re paying for postage at the retail rate, which is the most expensive way to go (you also waste a lot of time standing in line in order to ship packages from your carrier’s office).

To save money and time, you’ll want to create a shipping label yourself. In doing so, you can take advantage of postage discounts and make pickup arrangements from your home with the carrier. You can do this by printing a shipping label through the carrier’s website or by creating them with shipping software solutions.

Creating Shipping Labels Through a Carrier

You can create a shipping label manually through your carrier’s online services. It’s not the fastest method, but it’s fine if you’re shipping a low volume of packages. Simply visit the carrier’s website, fill out the shipping label template, and then download the file and print it out. Here are the major carrier sites for reference where you can do this:

Creating Shipping Labels Through Software Solutions

There are a variety of shipping label software solutions available online that easily integrate with your e-commerce software platform. There are some that follow the pay-as-you-go model, ideal for small-to-medium volume sellers, or monthly fee-based models ideal for high-volume e-commerce sellers.

What’s really great about these solutions is that most of them do more than just provide labels. Regardless of the payment model you choose, you generally get substantial carrier discounts and access to a dashboard offering a number of reporting tools.

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3 Shipping Label Best Practices

Here are a few other things to remember regarding shipping labels:

1. Special Instructions

If the contents of your package require special instruction, make a note of it on the package. This could mean labeling it “Fragile,” “Perishable,” or “Flammable.” (Carriers will often ask this as well).

You may also want to note if a package needs to be “This Side Up.” Noting these special requirements will help ensure your package arrives at your customer’s doorstep in perfect condition.

2. Label Placement

Labels should be placed on the top of your package (especially if there is a “This Side Up” instruction). Make sure the label is fully visible and not folded over any edges, as this could obscure important information or make it unscannable.

Also, be sure to flatten any bumps after sticking it down as this could also make codes unreadable. If you cover your label with transparent tape or place it in a plastic wallet for protection, just be sure the whole label is legible.

3. Packing Slips

A good e-commerce seller always includes packing slips, sometimes called a “waybill.” This goes inside the package (or outside, in a plastic wallet) and basically serves as a receipt.

The slips should include your company contact information, the customer’s address, the order date and number, the items included in the package and their quantity, a customer service number, and any additional comments or information about returns, refunds, etc.

Shipping Label FAQs

Where can I get a shipping label?

You can get shipping labels from individual carriers in-person or online, by printing a shipping label at home through personal shipping software, or by letting a 3PL handle it (you only pay for shipping).

Do shipping labels cost money?

It’s free to create a shipping label but, of course, you aren’t free to ship the package until you’ve paid for postage.

What is a prepaid shipping label?

Some companies will pay for the shipping of items that are being returned for repair or refund, and some non-profit organizations will pick up the shipping cost for items being donated.

They do this by sending you a prepaid shipping label to stick on your package or giving you a web address where you can print it out.

Can I print a shipping label at home?

Yes. Printing labels can be printed at home if you have the right printing tools and equipment. Be sure to follow the directions outlined by the carrier who will be shipping the parcel on your behalf.

For instance, if you select UPS as your preferred carrier, create a shipping label based on their instructions.

Can I handwrite a shipping label?

Yes, just be sure it’s clear tape and that the label is completely visible. Try not to allow any air pockets underneath the tape for a smooth affixture.

Can you tape over labels for shipping?

Do I need a special printer to print shipping labels?

You should be able to print a shipping label on any modern printer, however, if you want to use self-adhesive shipping labels (instead of gluing or taping them on the package) you’ll want a thermal printer that can accept them.

How to label a package

-Where should I put a shipping label on a package or box?

Place your shipping label on the side of the package with the largest and most visible surface. Labels can warp if placed on edges, making them unreadable to machines, so be sure not to wrap them around corners.

Do shipping labels expire?

If there is an indicated “ship by date” on a label and the date has passed, the label does expire. Some delivery services may still ship it past the expiration date, but complications can arise so it’s best to keep an eye on that date.

Are there size requirements for shipping labels?

A standard shipping label size is 4” x 6”, but different carriers may have different standards so you should be sure to check with them if you’re creating your own shipping label.

Simplify Shipping Labels (And All Fulfillment Steps!)

Most e-commerce sellers eventually find that they spend too much time packing boxes, printing labels, and shipping packages. After all, they have more important things to do, like growing their business! When this happens, they may turn to a product shipping service, otherwise known as a third-party logistics (3PL) company.

With a 3PL, you can store your products in their warehouses and, when orders come in, they will label and ship your products properly, you just need to cover the shipping charges. (And, you can certainly benefit from warehouse kitting, if you don’t want to deal with the hassle of putting things together yourself.)

If a 3PL sounds like a good solution for your business, choose The Fulfillment Lab. At The Fulfillment Lab, we store inventory strategically across domestic and international centers to reduce shipping costs with major carriers and increase the speed of delivery.

To learn more about The Fulfillment Lab, the services we offer, and what we can do for you, contact us today.