Shipping Labels & Packaging Guide: Cut Costs & Avoid Delays

Table of Contents

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.

Choosing the Right Shipping Box for Your Products

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:

Product dimensions and weight
Product fragility
Distance traveling
Climate conditions during transit
Carrier-specific requirements

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.

Understanding Essential Shipping Label Information

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:

Clear sender information (name, address, contact number)
Complete recipient details (name, address, contact number)
Tracking barcode or number
Service class or shipping method
Package weight
Special handling instructions (when applicable)

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.

Machine-Readable Elements

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)

Types of Shipping Labels for Different Needs

Different shipping scenarios call for different types of labels. Choosing the right label format can increase delivery accuracy and reduce processing time.

Adhesive Thermal Labels

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.

Non-Adhesive Labels

Used primarily for specialized shipping scenarios, these labels are printed on regular paper and placed in clear adhesive pouches. They're particularly useful for:

Irregularly shaped packages
Items where adhesive might damage the packaging (like gift boxes)
Temporary labeling during warehouse processing

While less common in eCommerce, approximately 12% of specialty retailers prefer this method for premium packaging experiences.

Integrated Labels

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.

Smart Labels

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:

Real-time location tracking
Temperature and condition monitoring
Automated inventory updates
Enhanced security features

Proper Placement and Attachment of Shipping Labels

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.

Optimal Label Placement

Follow these guidelines for proper label placement:

Position the label on the largest flat surface of the package
Ensure the entire label is visible and not wrapped around edges
Avoid placing labels over seams, edges, or tape
Keep at least 1 inch clearance from all box edges
Never place labels where they might be obscured by strapping or tape

Secure Attachment Methods

For adhesive labels:

Ensure the surface is clean and dry before application
For extra security, apply clear packing tape over the entire label, being careful not to obscure barcodes
Leave a small margin of tape extending beyond the label edges

For non-adhesive labels:

Use high-quality shipping pouches with strong adhesive backing
Secure all edges of the pouch with clear packing tape
When using document sleeves, ensure they're rated for shipping use

Best Practices for Specialized Shipping Situations

Certain shipping scenarios require additional considerations for successful delivery.

International Shipping

When shipping internationally, follow these label best practices:

Include the destination country name in all-capital letters on the last line of the address
Add telephone numbers for both sender and recipient
Attach all customs forms securely adjacent to the shipping label
Consider using bilingual labels for countries where English is not the primary language

Fragile Items

For delicate shipments:

Apply standardized "FRAGILE" or "HANDLE WITH CARE" labels on multiple sides of the package
Use directional indicators like "THIS SIDE UP" when orientation matters
Consider using specialized high-visibility labels for extremely delicate items

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.

Cost-Saving Tips Through Proper Labeling

Optimizing your labeling practices can lead to significant cost savings. Here are strategies that can reduce shipping expenses:

Ensure accurate weight and dimensions on labels to avoid costly adjustment fees (which can add $10-15 per package)
Print and attach labels yourself rather than paying for carrier labeling services
Use consistent label locations to speed up fulfillment and reduce labor costs
Leverage multi-carrier shipping software to automatically select the most cost-effective service for each package
Consolidate orders going to the same address to reduce per-package handling fees

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.

Troubleshooting Common Shipping Label Issues

Even experienced shippers encounter label problems. Here's how to address the most common issues:

Unreadable Barcodes

If scanners cannot read your barcodes:

Check printer settings and ensure proper resolution (203 dpi minimum for barcodes)
Avoid stretching or compressing the label during printing
Replace printer heads regularly if printing volume is high
Ensure no tape or packaging material covers any portion of the barcode

Address Validation Failures

When systems flag address problems:

Utilize address validation services before finalizing labels
Contact customers to confirm addresses that seem incomplete or incorrect
Be especially careful with suite numbers and apartment details
For international addresses, ensure country-specific formatting is followed

Future of Shipping Labels and Packaging

The shipping label landscape continues to evolve rapidly. Staying informed about these trends can help you prepare for future shipping requirements:

Increasing integration of QR codes linking to digital delivery instructions
Growth of eco-friendly labeling materials that decompose with packaging
Expansion of augmented reality features for delivery personnel
Development of temperature-sensitive inks that indicate if packages exceeded safe temperature ranges

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.

Conclusion: The Strategic Value of Proper Labeling

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.

‍

Frequently Asked Questions

How do I properly label a package for shipping?

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.

What should a shipping label include to avoid delivery issues?

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.

Why does proper labeling reduce shipping costs?

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.

Where should I place shipping labels on a box?

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.

What's the best label for shipping fragile items?

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.

How can I secure shipping labels to prevent them from peeling off?

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.

When should I use thermal labels versus regular paper labels?

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.

What common mistakes should I avoid when labeling shipping boxes?

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.