Shipping labels might seem like a small detail in your eCommerce operation, but they play a crucial role in ensuring your products reach customers safely, on time, and cost-effectively. Many businesses overlook the importance of proper labeling, potentially increasing shipping costs by 10-15% through incorrect weight classifications or delivery delays. With eCommerce shipping volumes continuing to grow—reaching over 20 billion parcels annually in the US alone—mastering the art of packaging and labeling has become essential for any business that ships products.
Whether you're just starting your eCommerce journey or looking to optimize your existing shipping processes, understanding how to properly label and package your shipments can lead to significant cost savings and improved customer satisfaction. Let's explore the fundamentals of effective shipping labels and packaging to help streamline your fulfillment process.
The foundation of successful shipping starts with selecting the appropriate box. According to packaging experts, using a box that's too large can increase dimensional weight charges by up to 30%, while boxes that are too small risk damage to your products.
When selecting your shipping container, consider these important factors:
For lightweight items under 2 pounds, padded mailers or poly bags may suffice and significantly reduce shipping costs. For heavier items, corrugated cardboard boxes with appropriate thickness (measured in ECT or burst strength) provide the necessary protection. As a general rule, leave about 2 inches of space around your product for cushioning material.
A 2024 study by Maersk highlighted that proper packaging selection can reduce damage rates by over 30%, emphasizing that "right-sizing" packages is a critical component of an antifragile supply chain strategy.
A properly formatted shipping label ensures your package moves efficiently through the logistics network. According to USPS guidelines updated in 2025, every shipping label must include:
For international shipments, additional elements are required, including customs forms, harmonized tariff codes, and detailed package contents. Missing or incorrect information on international labels can lead to customs delays averaging 3-5 business days.
Modern shipping labels contain machine-readable elements like barcodes and QR codes that facilitate automated sorting. These elements enable tracking systems to update package status in real-time, with carriers scanning packages an average of 7-10 times during transit.
Alicia Boemi, a logistics specialist at Loftware, notes, "Cloud-based labeling solutions are changing the game by centralizing label management and providing real-time updates, ensuring compliance with the latest industry regulations." (Loftware 2025 forecast)
Different shipping scenarios call for different types of labels. Choosing the right label format can increase delivery accuracy and reduce processing time.
These are the industry standard, preferred by 85% of eCommerce businesses. Thermal labels don't require ink and resist fading, making them ideal for packages that may be exposed to various environmental conditions. Most major carriers and shipping platforms generate thermal label formats that print perfectly on 4" x 6" label stock.
Pro tip: Invest in a dedicated thermal label printer if you ship more than 20 packages weekly. The initial cost (typically $100-300) is quickly offset by time savings and improved label quality.
Used primarily for specialized shipping scenarios, these labels are printed on regular paper and placed in clear adhesive pouches. They're particularly useful for:
While less common in eCommerce, approximately 12% of specialty retailers prefer this method for premium packaging experiences.
These combine packing slips and shipping labels in one document, reducing fulfillment time by approximately 15-20 seconds per package. They're especially popular with high-volume shippers processing hundreds of orders daily.
The newest innovation in shipping labels incorporates RFID or NFC technology. According to Supply Chain Strategy Media, these labels enable constant visibility throughout the supply chain, with adoption rates growing by 45% annually. Smart labels allow for:
Even the most accurate label is ineffective if improperly attached. Carrier studies show that approximately 5% of delivery delays result from label issues such as placement problems or detachment during transit.
Follow these guidelines for proper label placement:
For adhesive labels:
For non-adhesive labels:
Certain shipping scenarios require additional considerations for successful delivery.
When shipping internationally, follow these label best practices:
For delicate shipments:
Josh Carragher, Senior Analyst at Contguard, notes, "Leveraging AI and machine learning in cargo security has led to a 40% decrease in shipping interruptions due to real-time threat detection and route optimization." (Contguard security trends) This technology is increasingly available to small and medium eCommerce businesses through third-party logistics providers.
Optimizing your labeling practices can lead to significant cost savings. Here are strategies that can reduce shipping expenses:
The 2024 Maersk study emphasized that businesses adopting integrated logistics partnerships saw a 30% reduction in overall shipping risks and costs, highlighting the value of a systematic approach to shipping operations.
Even experienced shippers encounter label problems. Here's how to address the most common issues:
If scanners cannot read your barcodes:
When systems flag address problems:
The shipping label landscape continues to evolve rapidly. Staying informed about these trends can help you prepare for future shipping requirements:
According to Loftware's 2025 industry forecast, over 60% of global shippers will adopt cloud-based labeling solutions by 2027, centralizing label management and ensuring compliance with rapidly changing regulations.
Effective shipping labels do more than just get packages from point A to point B—they're a critical component of your overall customer experience and operational efficiency. By implementing the best practices outlined in this guide, you can reduce shipping costs, minimize delivery delays, decrease product damage, and ultimately improve customer satisfaction.
As eCommerce continues to grow and shipping networks become increasingly automated, the precision of your labeling practices will play an even larger role in determining shipping success. Take time to review your current labeling procedures against these guidelines, identifying opportunities for improvement that can deliver both immediate and long-term benefits to your shipping operations.
To properly label a package for shipping, place the label on the largest flat surface of the box, ensuring it's not wrapped around edges or placed over seams. Include complete sender and recipient information, tracking number, weight, and service class. For added security, apply clear packing tape over the entire label (without obscuring barcodes) and leave a 1-inch clearance from all box edges to prevent damage during transit.
A complete shipping label must include clear sender information (name, address, phone number), complete recipient details, tracking barcode or number, service class, and package weight. For international shipments, add customs forms, harmonized tariff codes, and detailed package contents. Missing information—especially on international labels—can cause delays of 3-5 business days and potentially result in returned packages.
Proper labeling reduces shipping costs by ensuring accurate weight and dimensions are recorded, avoiding adjustment fees that can add $10-15 per package. It also streamlines the delivery process, preventing delays and returns due to misrouting. According to industry research, businesses using integrated label management systems see up to 30% reduction in overall shipping risks and costs by minimizing human error and optimizing carrier selection.
Place shipping labels on the largest flat surface of the package, keeping at least 1 inch clearance from all box edges. Never position labels over seams, edges, or tape, and ensure the entire label is visible (not wrapped around corners). For fragile items, add specialized handling labels on multiple sides of the package while keeping the main shipping label unobstructed for scanning.
For fragile items, use standard shipping labels supplemented with high-visibility "FRAGILE" or "HANDLE WITH CARE" labels on multiple sides of the package. Add directional indicators like "THIS SIDE UP" when orientation matters. Ensure these supplementary labels don't obscure the main shipping information, and consider using specialized bright orange or red fragile labels that stand out to handlers throughout the shipping process.
To prevent shipping labels from peeling off, first ensure the package surface is clean and dry before application. For extra security, apply clear packing tape over the entire label, being careful not to obscure barcodes, with tape extending slightly beyond the label edges. For non-adhesive labels, use high-quality shipping pouches with strong adhesive backing and secure all edges with additional tape for moisture protection.
Use thermal labels when shipping more than 20 packages weekly, as they don't require ink, resist fading, and withstand various environmental conditions. They're preferred by 85% of eCommerce businesses for their durability and scan reliability. Regular paper labels in clear adhesive pouches are better for irregularly shaped packages, premium packaging where adhesive might damage the presentation, or temporary warehouse labeling.
Avoid placing labels over seams or box edges, using wrinkled or damaged labels that can't be scanned, covering barcodes with tape that creates glare, or using incorrect weight/dimensions that lead to surcharges. Don't place multiple old labels on reused boxes (remove or blackout all old barcodes), and never handwrite on printed labels as this can confuse automated scanning systems and cause delivery delays.