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Shipping Labels: A Comprehensive Guide for Successful Logistics

Shipping labels are an essential element in a smooth supply chain. These small tags on packages bear immense responsibility. They serve as a sort of passport, containing all the key information for proper routing and reliable tracking of shipments. The slightest error on the label can result in the cargo ending up where it shouldn't be, or even getting lost altogether.

And even one such unsuccessful delivery experience can result in your company losing a customer. 84% of consumers are not willing to return to a brand that cannot provide them with reliable delivery. For any business, this means loss of money and reputation.

In our article, we will provide you with all the necessary information about shipping labels, starting from their structure and ending with the process of creation and printing. Proper labeling will help your company avoid these risks and ensure the successful delivery of every shipping.

1. What Is a Shipping Label?

A shipping label is a special marking that is affixed to packaging, boxes, or pallets for the identification and tracking of goods both in transit and in storage.

It serves as a means of communication between the parties involved in the transportation process, including the sender, carrier, and recipient. Shipping labels contain all the key information for the efficient and safe delivery of goods from the sender to the recipient. This makes them an indispensable component of modern logistics and ecommerce.

2. What Role Do Shipping Labels Play in Ecommerce?

The use of shipping labels is not just a matter of convenience. It is a fundamental practice that reduces the risk of errors, delays, and lost parcels. Their main purpose is to ensure complete transparency, security, and accuracy in managing shipments at all stages of their movement along the supply chain. This provides businesses with a range of opportunities that increase trust from customers.

2.1 Identification and tracking of cargo

Thanks to the unique identifier on the shipping label, carriers can easily determine the location of each shipment and correctly direct it along the appropriate route. This eliminates delays in transit and ensures that goods are delivered on time and accurately.

2.2 Secure delivery

The shipping label includes information about the contents of the package. This allows carriers to pay special attention to fragile or other items requiring special transport conditions. This reduces the risks of damaging the goods in transit.

2.3 Reverse logistics

Another equally important aspect of using shipping labels is their role in reverse logistics. In the event of a product return, they facilitate a structured and transparent process for its reverse delivery to the sender. This helps reduce the time and effort companies spend on handling returns.

2.4 Transparency for consumers

For consumers, it's also crucial to have access to information about their shipment. The shipping label enables them to track the delivery status, learn about the estimated time of arrival, and monitor the process of receiving the goods.

3. What Does a Shipping Label Look Like?

Each carrier has its own template for shipping labels. Let's break down the common structure using DHL delivery service as an example. Typically, it includes the following information:

1. Sender information: At the top of the shipping label, typically, sender information is provided. This includes the sender's name, company name (if applicable), and full address, including street, city, and postal code. In case of delivery issues, the carrier will have an address for returning the package.

2. Recipient Information: Directly below the sender's information, there is corresponding information about the recipient. This includes the recipient's name, company name (if applicable), and full address, enabling clear identification of the package's destination.

3. Delivery method: This information provides carriers with important details to determine the appropriate route and delivery schedule.

4. Package weight and dimensions: This data helps determine the cost of delivery and ensures that carriers allocate the necessary space and resources for transportation.

5. Tracking number: This alphanumeric code is unique to each shipment. It is crucial for real-time tracking and monitoring throughout the entire delivery process.

6. Barcodes: Alongside or beneath the tracking number, one or several barcodes are typically located. They encode information about the shipment, enabling automated scanning and processing, facilitating efficient sorting and tracking.

The placement of information and the design of shipping labels may vary depending on the carrier. However, the elements listed above are common features that together form a comprehensive structure of the shipping label.

The label is affixed to the outer side of the packaging. This helps ensure easy access to information for scanning and processing throughout the entire journey of the shipment.

4. How Do Shipping Labels Work?

Shipping labels serve as a vital communication tool in the complex system of logistics and supply chain management. Once created, the label is printed and affixed to the outer side of the packaging. This strategic placement ensures visibility for automated scanners and handlers throughout the entire delivery process.

When a parcel enters the logistics network, it undergoes a series of scans using automated barcode or QR code readers. These scans play a crucial role in identifying the parcel, tracking its movement, and sorting it according to the assigned route. The unique tracking number on the shipping label allows the sender and recipient to monitor the status of the parcel, its location, and expected delivery time through the carrier's tracking system.

Throughout the entire journey, a parcel traverses various modes of transportation and distribution centers. At each stage, the shipping label is scanned to ensure that the parcel is following the correct route and reaching its intended destination. Upon reaching the final destination, it undergoes a final scan to confirm delivery.

Thus, shipping labels ensure that parcels are delivered to the correct recipient and to the specified address. Essentially, they act as comprehensive identifiers, facilitating smooth and accurate movement of parcels throughout the entire supply chain.

5. How To Create a Shipping Label?

Creating a shipping label is a straightforward process. You can use the carrier's service or utilize ready-made shipping label templates available through online resources.

5.1 Through the carrier's service

Many major carrier companies offer their customers the ability to create and print shipping labels directly on their websites or platforms. You will need to fill in the necessary information, including the sender's and recipient's addresses, the weight of the shipment, and other delivery details. Then, you can generate a ready-to-print label.

5.2 Using ready-made templates

Many online resources also offer free or paid templates for creating shipping labels. For example, Shopify provides a service that allows you to make shipping labels for free . You can choose a suitable template, then fill in the necessary fields with information about the shipment and delivery. This can be a convenient solution for small businesses or individuals who do not have access to specialized carrier services.

In both cases, it is important to ensure that all the necessary information on the shipping labels is filled in correctly and clearly. This helps avoid errors during shipment and ensures its safety in transit.

6. How to Avoid Errors When Generating Shipping Labels? 5 Effective Tips

The delivery experience depends on the accuracy and quality of shipping labels. As we noted at the very beginning, errors on labels result in delays, incorrect routing of shipments, and even loss of parcels. Below, we have provided 5 valuable tips for precise, reliable, and uninterrupted work with shipping labels.

6.1 Apply labels correctly

Place the shipping label on the largest side of the box. Ensure it is not folded at the edges. Important information should remain visible to both the carrier and the scanner. Check that there are no protruding corners or irregularities that could damage the label and make it unreadable.

6.2 Include additional information on shipping labels

Include additional information about the contents of the box on shipping labels. For example, mark fragile, perishable, or hazardous goods. This will inform the carrier about special handling of the parcel. However, make sure that this information complies with the carrier's rules to avoid potential problems during transportation.

6.3 Double-check the information on the label

Implement a double-check system where different employees verify the data entered on the shipping label. This will increase accuracy and reduce the likelihood of errors that could cost you a customer. Pay particular attention to barcodes. Duplicating them can lead to misunderstandings and difficulties in tracking the shipment.

6.4 Attach a packing slip to the package

Attach a packing slip to your package. It includes a brief description of the contents, order number, and other important details. This additional measure will help streamline the sorting and processing process at the warehouse, as well as provide the carrier with additional information about the shipment.

6.5 Collaborate with carriers

Collaborate with carriers. This will help optimize logistical processes. Integrate your ecommerce platforms with their systems to automate the creation and processing of shipping labels. This way, you'll significantly speed up the shipping process and reduce the likelihood of errors.

7. How to Print Shipping Labels?

Online services allow you to easily customize and print shipping labels right from your home. Two of the most common methods are printing with an inkjet/laser printer and printing with a thermal printer. The choice depends on the required print quality, volume of work, and operating conditions.

When using an inkjet or laser printer, shipping labels can be printed on regular paper or special self-adhesive paper. This is convenient for small printing volumes. However, it should be noted that such labels may have limited durability in external conditions and require additional protection for long-term use.

Thermal printers are used for printing shipping labels on special thermal transfer paper. This approach guarantees more durable labels. It is ideal for creating barcodes and information that remains readable even when exposed to moisture, chemicals, or other environmental factors. However, it is worth noting that thermal printers may require more significant investments in equipment.

8. Logistics Outsourcing: Entrust All Label Concerns to Fulfillment-Box

As you've already understood, shipping labels are crucial, and mishandling them can lead to a range of problems. Different logistics companies may have varying requirements for labels. Incorrect formatting can result in delivery refusal or additional expenses for error correction. Considering the large volume of shipments, this could require significant resources and time.

Fulfillment-Box is a solution designed to simplify the management of shipping labels and improve the efficiency of your supply chain. We will handle all the routine tasks related to their creation and printing, allowing you to focus on your core tasks.

Collaborating with Fulfillment-Box will provide your business with experience, reliability, and extensive resources for accurate and efficient labeling of your shipments. Our specialists will take care of every aspect of managing shipping labels, ensuring compliance with all standards and requirements. Additionally, our long-term partnerships with leading carriers, including DHL, DPD, UPS, and FedEx, will enable you to offer advantageous rates and terms to your customers.

Simplify your supply chain with Fulfillment-Box and ensure accurate and timely delivery of your products.

9. Frequently Asked Questions

1. How much does creating a shipping label cost?

If you generate and print shipping labels independently through online resources, it is free. However, you will need to pay for shipping costs.

If you collaborate with Fulfillment-Box, here are your options:

a) You can generate shipping labels yourself and attach them to the order in our software. In this case, you only pay for shipping costs.

b) Shipping labels from partner delivery services are automatically generated and pulled into the order thanks to the integration of our software and delivery services. You also only pay for the cost of shipping, which will be included in the total invoice from the Fulfillment Center.

c) If you need to generate a return shipping label to a specific address, this service will incur a fee. For example, at our Fulfillment Centers in Germany and Poland, generating one return label costs 5 euros. Additionally, you pay for the cost of the shipping label itself (shipping costs). All expenses will be included in the total invoice from the Fulfillment Center.

2. What size should the shipping label be?

The standard size of a shipping label depends on the carrier. Typically, it should be large enough for clear reading of information and barcodes.

3. Can I print a shipping label from home?

Yes, you can create shipping labels through the carrier's online service and print them yourself from home. To do this, you will need a standard printer and self-adhesive label paper designed for printing labels.

These shipping labels can only be used for self-shipping parcels. For shipments from Fulfillment-Box warehouses, printing shipping labels yourself is not required, as the Fulfillment Center will take care of everything.

4. What printer should I use to print shipping labels?

For printing shipping labels, it's best to use thermal printers. They allow for printing on self-adhesive labels. For small volumes, standard inkjet or laser printers can be used. However, you will need adhesive and scissors in this case. It's also important to check the print quality to ensure clear barcode printing for the courier's recognition of the shipping label during scanning.

5. How to protect a shipping label from damage?

To protect a shipping label from damage, it is recommended to secure it with clear tape or attach it to a transparent plastic envelope. This will provide additional protection against physical damage and maintain the readability of the label during transportation.

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Julia Gordon

AuthorJulia Gordon

Head of the Fulfillment-Box Prep Centers network

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