What is a shipping label and how does it work? E-commerce guide

Shipping labels are an essential part of e-commerce logistics, but they can be more complicated than they seem.

Regardless of the size of your store, if you get the shipping labels wrong, shipments can quickly become costly, inefficient, and even prevent package delivery.

Whether you’re just starting to deliver your first products and are looking for additional advice on how to do it, or you’ve been sending packages for a while, our shipping label guide leaves no stone unturned.

In this article, we will help you fully understand:

1. What is a shipping label or Waybill and what is its purpose?
2. What does a shipping label look like?
3. How to create shipping labels?
4. How to print a shipping label?
5. How to place shipping labels on the package?

All these tips will help you eliminate the risk of your packages not being delivered due to issues with the shipping labels. This guide will also help you save time and money as your business grows. Use best practices for your shipping processes.

1. What is a shipping label or Waybill?

Shipping labels display essential information for a courier to transport a package from the initial destination (your warehouse) to the final destination (the customer’s hands).

The essential information includes: postal code (ZIP), country, tracking number, date, shipment parcels, weight, address, shipping street, city, and province (area). Shipping labels can also specify the content, especially if it’s international shipments.

The labels also include information related to the shipping method (e.g., Express, Standard, etc.) so the courier ensures the service paid for is provided.

Each label is unique, and you cannot reuse old labels. A new label must be created for each delivery.

2. What does a shipping label look like?

A shipping label displays information to direct packages to the correct destinations, track them at every stage, and ensure the correct service is provided.

Each courier uses a specific template for their shipping labels. They are designed to be read by machines and people, so they must be clear and easy to read. Each courier has designed their label to work with their sorting and delivery process, so it’s crucial to use their templates. On a shipping label, you’ll see barcodes, numbers, and letters.

What fields a shipping label consists of:

1. The sender’s name and address
2. The recipient’s name and address
3. A Barcode – a code that can be read in any direction by a machine
4. The sorting code – informs how to route the package within the carrier’s sorting network
5. The postal barcode – the destination postal code
6. The tracking number
7. Service type – the chosen method provided by the carrier (e.g., Express, Standard, etc.)

Most of the information is generated automatically by the carrier.

The main information you’ll need is:

1. The sender’s name and address
2. The recipient’s name and address
3. The service method

The standard size of shipping labels is 4 x 6 inches (10 x 15 cm). If this doesn’t fit your package, other standards can be 15 x 7 cm (6 x 3 inches) and 10 x 10 cm (4 x 4 inches).

3. How to create shipping labels?

Shipping labels are generally created during the order processing.

Couriers have specific requirements for their shipping labels. You cannot create your template or manually fill out a label. To create a shipping label, you must follow the courier’s requirements.

Basically, you have two options for your shipments: you can go to your local post office and purchase a shipping label by filling it out with the necessary data. This way, you are actually purchasing a kind of retail postage, which usually has a more expensive price range for shipping labels and is used for those who make occasional shipments (about 1 package per week).

The alternative is to contact a courier (e.g., GLS, SDA, BRT, Poste Italiane, DHL, TNT, UPS, FedEx, etc.) and organize your shipping labels, including discounts on shipping costs and scheduling package pickups instead of having to go periodically to the post office to make your shipments.

There are ways to automate the process and minimize manual input from data. Below are 3 effective methods to minimize preparation and labeling work for your shipments:

1. Create your labels online

You can create a shipping label using the courier’s online tools. Each courier has its online platform where you can create shipping labels that fit your specific needs.

Visit your courier’s website, log in with the credentials received during the contract phase with them, fill out the label template, and then download the file so you can print it.

However, this is not the fastest method. For each order, you will need to visit the site and manually enter the information.

2. Use shipping label software

If the courier has software (Windows/Mac) for creating their shipping labels, this will allow you to download the shipping label template of your courier and fill out the label locally on your computer.

This option will also allow you to customize the process, with potential CSV or Excel file imports with related automation and the ability to work offline.

3. Fully automate the import of your order data from multiple platforms and create your shipping label automatically

Automatically aggregate order information from multiple platforms and couriers to fill out forms quickly and efficiently with a shipping tool.

A good shipping tool will connect directly to your store, retrieve the order information needed for the shipping label, and help you automatically create the label in the correct template.

Automating shipping labels If you have a significant amount of orders, a shipping tool can save you time and effort, eliminating the need to manually fill out labels.

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What is a shipping label and how does it work? E-commerce guide Deagor WMS per ecommerce può aiutarti!