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Shipping Labels

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How Shipping Labels Work and How To Create Your Own

TL;DR

A shipping label carries all the information carriers need to deliver a package accurately and on time. You create one by gathering order data, choosing a carrier, generating a label in the correct format, printing it cleanly, and making sure it's placed properly. When shipping labels are created correctly, your fulfillment workflow runs faster, smoother, and with fewer headaches for everyone involved.

What Is a Shipping Label?

A shipping label looks simple at first glance, but it is essentially a passport for your package. Without it, your product sits lost in an ecommerce warehouse hoping someone telepathically knows where it belongs. With it, your order moves through automated conveyor belts, scanners, sorting hubs, trucks, planes, and a final delivery route that relies on precise instructions.

The label ties directly into how your orders flow through a pick and pack warehouse and how fast your Shopify fulfillment gets packages out the door. If anything on the label is off, your customer ends up refreshing tracking information like it's a live sport.

Shipping labels may not be glamorous, but they quietly run the entire ecommerce universe.

Information on a Shipping Label

Shipping labels are designed so machines and humans can read them without confusion. Every part has a job.

Recipient Address

This shows exactly where the package needs to land. Carriers follow standardized formats so their systems can parse address data quickly.

Sender Address

A return address prevents packages from drifting into shipping limbo when something goes wrong.

Machine Readable Barcodes

These barcodes instruct scanners on routing paths, service levels, and package identification. Carriers commonly use formats such as USPS IMpb, UPS Maxicode, DHL 2D barcodes, and FedEx Ground 96.

Tracking Number

This number ties to a digital record of every scan event along the journey.

Routing Codes

Internal carrier codes help automated systems funnel the package along the proper network.

Package Weight and Dimensions

Carriers build pricing and routing decisions on this data.

For more info on overseas packaging, see Royal Mail parcel sizes and prices.

Service Level Indicators

Examples include:

  • Ground

  • Priority

  • Overnight

  • Economy

Special Handling Notes

Fragile items, perishables, or regulated goods require visible icons or phrases.

Each component is placed intentionally so carriers can process packages at high speed without stopping for clarification.

How Carriers Use Shipping Labels

A shipping label acts like instructions out of a choose your own adventure book, except the stakes are higher because people get weirdly emotional about their online orders.

Here is what happens once your label is created.

Step 1: The Label Is Generated

The ecommerce platform or fulfillment system creates the label based on order information. If you use a 3PL, this often happens automatically inside their workflow. You can explore how these processes unfold in stages of a 3pl fulfillment process.

Step 2: The Label Gets Printed

Most operations use thermal printers because inkjet printers fade, smudge, and create chaos. Clean printing ensures barcodes stay readable.

Step 3: The Carrier Picks Up the Package

The first scan activates tracking, officially bringing the package into the carrier’s system.

Step 4: The Package Moves Through Sorting Facilities

Automated sorters scan barcodes and route packages along conveyors. If the label is crooked, wrapped around a curved surface, or covered in tape, the sorting system will struggle. Packages that fail automated scanning move into manual processing, which slows everything down.

Step 5: Last Mile Routing

The destination facility re scans the label and assigns it to a driver’s route. Carrier mapping tools rely heavily on the zipcode and routing codes printed on the label.

Step 6: Delivery

The package arrives at the customer's door, hopefully not camouflaged inside a bush or left in a location only a mountain goat could reach.

If you're curious about the mechanics of last mile distribution, you can dive into last mile delivery afterward.

Types of Shipping Labels

Different shipments call for different label formats.

Domestic Labels

Used for packages staying within the same country.

International Labels

Include customs declarations, product descriptions, tariff codes, and commercial invoices. When shipping duty paid items, this often overlaps with workflows seen in DDP shipping.

Return Labels

Pre generated so customers can send items back without needing help.

Thermal Labels

Durable, clean, and preferred across the ecommerce world.

Integrated Labels

Packing slip and shipping label on a single sheet for simpler order handling.

Digital Labels

Used in mobile shipping workflows, apps, or platforms such as passport shipping.

Each label type has its own carrier standards and printing requirements.

How to Create a Shipping Label

Creating a shipping label should not require caffeine fueled panic. Follow this sequence and you will never struggle again.

Step 1: Gather Order Details

You'll need:

  • recipient address

  • sender address

  • package dimensions

  • package weight

  • shipping service level

These details often come from systems like WooCommerce fulfillment or Magento fulfillment.

Step 2: Choose the Carrier

USPS, UPS, FedEx, DHL, and regional carriers each have their own label standards.

Step 3: Select the Service Level

Think about customer expectations. A recurring program using subscription box fulfillment may benefit from predictable service levels every cycle.

Step 4: Generate the Label

This usually happens through your ecommerce platform, carrier software, or integrated fulfillment system. Tools like Fulfilio integrations or Loop fulfillment often automate this part.

Step 5: Print or Apply Digitally

Thermal printers produce crisp, long lasting labels that scanners can read easily.

Step 6: Apply the Label Correctly

Flat surface, sharp contrast, no wrinkles. Place the label on the largest, most stable face of the package.

Step 7: Verify Tracking

Always check that the tracking number registers correctly before the package leaves your facility.

Common Shipping Label Mistakes

These errors show up in warehouses every day and can derail an otherwise smooth operation.

Wrinkled Labels

A creased label can sabotage a clean scan.

Incorrect Carrier Format

Each carrier has its own rules.

Inaccurate Weight

Carriers audit shipments and adjust fees accordingly.

Barcodes Covered With Tape

Glossy surfaces create reflection issues.

Low Quality Prints

Inkjet smudges and fading text are not scanner friendly.

Missing Return Address

Packages without a return path often get pulled from circulation.

Wrong Service Level

If the label says ground but the customer expects two day, prepare for fireworks in your inbox.

If you want to strengthen internal processes around accuracy, check out pick lists 101 or learn how warehouse structures influence label flow in types of warehouses.

How They Fit Into Broader Fulfillment

Shipping labels connect to almost every stage of ecommerce operations.

Inside a warehouse, the shipping label dictates:

  • how pickers locate items

  • how packers follow rules

  • how automation selects the right carton

  • how parcels are sorted for carrier pickups

Operations involving kitting and fulfillment services or products that belong to apparel brands working with fashion fulfillment depend on consistent label formatting to keep workflows moving efficiently.

Operation wide forecasting also influences label batches, explored in deeper logistics articles such as supply chain forecasting.

Why Barcode Formats Matter

Barcodes are not decorative. They pack a remarkable amount of information into small spaces and help scanners move packages quickly across facilities.

1D Barcodes

Common on USPS and UPS labels.

2D Barcodes

Encode more data and handle faster scanning.

Maxicode

A circular code used heavily for high speed routing.

GS1 Standards

International standards that unify barcode structure across global commerce.

Carrier efficiency depends heavily on barcode clarity. A faint print or partial cutoff can push the package into manual review.

International Shipping Labels

International shipments require additional data because customs agencies need to verify:

  • what is being shipped

  • what it is worth

  • whether it is allowed

  • whether duties must be paid

Labels include tariff codes, product descriptions, and sometimes multiple pages of accompanying forms.

Product categories tied to nutraceutical fulfillment often require precise wording, because customs agencies do not enjoy guessing games.

Automating Shipping Label Creation

Once you hit around twenty shipments a day, manual label creation feels like solving a puzzle with missing pieces. Automation becomes your new best friend.

Automated rules help determine:

  • carrier selection

  • box size

  • dimensional weight application

  • batching

  • routing

  • pickups

This becomes critical across complex networks like bigcommerce fulfillment and even more so when processing tiktok shop returns.

Sustainability and Shipping Labels

If you aim to reduce waste or track emissions, your shipping labels play a role in how packaging moves through sustainable programs.

Initiatives like ShipBots sustainability practices show how thoughtful label choices can reduce material use and improve recycling compatibility.

Troubleshooting Scanning

Carriers reject labels for predictable reasons.

The Label Is Too Glossy

Tape glare confuses scanners.

The Label Is Too Small

Minimum sizes exist for a reason.

The Print Is Too Light

Poor contrast means extra manual work.

The Barcode Is Cut Off

Margins affect automation.

The Label Is On a Curved Surface

Machines expect flat planes.

The Label Is Damaged From Condensation

Especially common with cold chain products handled through temperature control fulfillment warehouse systems.

Shipping Labels And Delivery Speed

A label that is formatted correctly speeds up delivery at every stage.

Inside a warehouse:

  • pickers match SKUs faster

  • packers reduce errors

  • automation flows cleanly

Inside a carrier network:

  • scanners read labels instantly

  • routing systems choose optimal paths

  • fewer packages fall into manual review

Delivery routes depend on exact zip codes and routing codes, topics that connect to broader concepts covered in outsourcing in supply chain management.

Training Teams Correctly

People underestimate how often label placement sabotages fulfillment.

Print Quality Checks

Run a weekly test sheet to confirm clarity and contrast.

Placement Rules

Flat, straight, and centered.

Size Standardization

Keep label dimensions consistent across all boxes.

No Tape Over Barcodes

This rule saves countless hours downstream.

Scan Testing

Use handheld scanners to confirm readability.

Shipping Labels and Inventory Data

If your SKU details are inaccurate, your shipping labels mirror those errors.

To tighten up your data, explore:

Good data builds good labels.

Digital and Dynamic Labels

Carriers are exploring digital label systems that generate routing information on the fly, reducing printing waste and enabling dynamic rerouting.

Platforms like Amazon FBA prep workflows and ChannelAdvisor fulfillment already integrate these concepts.

When Manual Label Creation Breaks

Your team should not manually build labels if you have:

  • seasonal spikes

  • multiple SKU bundles

  • frequent kitting workflows

  • subscription programs

  • multi warehouse distribution

These situations align closely with more advanced fulfillment guides such as pick and pack fulfillment and ecommerce fulfillment guide.

Manual labels in these scenarios cause bottlenecks your team definitely feels.

Final Shipping Label Checklist

A shipping label is correct when it has:

  • accurate addresses

  • clean barcodes

  • correct weight

  • correct service level

  • clear text

  • proper placement

  • verified tracking

Follow this checklist and your parcels glide through carrier systems instead of stumbling through them.

Ready for Shipping Labels That Work?

If you want labels that never stall, never misroute, and never leave customers guessing, partnering with a fulfillment team that handles this daily makes everything easier. Clean workflows begin with accurate data, solid processes, and consistent execution.

When you’re ready for stress free shipping, smooth operations, and labels that behave themselves, you can start here.

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