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18. Shipping Label and Documentation

 18. Shipping Label and Documentation

The Critical Paperwork That Powers Logistics

In logistics, a product isn't ready to leave the warehouse until it has the correct shipping label and documentation. These aren't just stickers or forms — they’re essential tools for tracking, delivery, compliance, and legal accountability.

Whether you’re sending packages across town or across continents, understanding how shipping labels and logistics documents work is vital to avoid delays, lost shipments, fines, or unhappy customers.

Let’s explore what they are, what they include, who needs them, and why they matter.


What Is a Shipping Label?

A shipping label is a machine-readable tag affixed to a package that contains all the essential information required to transport, track, and deliver the shipment correctly.

It’s used by:

  • Carriers (e.g., FedEx, UPS, DHL, national post)

  • Sorting centers and hubs

  • Customs officials (for international shipping)

  • Delivery drivers

  • The customer (for tracking purposes)


Core Elements of a Shipping Label

Though designs vary by carrier, a standard shipping label usually contains:

ElementDescription
Sender's InfoName, address, and sometimes contact number of the shipper
Recipient’s InfoFull delivery address and contact details
Tracking NumberUnique number used to track the package during transit
Carrier Name & Service LevelIndicates courier (e.g., UPS Ground, FedEx 2-Day) and shipping speed
Barcode (1D or 2D)Machine-readable data for scanning during each stage
Routing CodesInternal codes used by the carrier for sorting
Weight & DimensionsUsed for pricing, load planning, and compliance
Reference or Order NumberYour internal reference for matching to orders or invoices
Customs Details (if international)Basic declaration info (commodity type, value, origin country)

What Is Shipping Documentation?

Beyond the label, most shipments require supporting documentation — especially for business or international logistics.


Essential Shipping Documents

1. Packing Slip (or Delivery Note)

  • Lists the contents of the package (SKUs, quantities, product descriptions)

  • Used to verify the order upon delivery

  • Usually placed inside the package

  • Can include return instructions or contact info

2. Commercial Invoice

  • Required for international shipments

  • Used by customs to assess duties and taxes

  • Includes:

    • Buyer and seller info

    • Description of goods

    • HS codes (Harmonized System codes)

    • Declared value

    • Country of origin

    • Payment and Incoterms

3. Bill of Lading (BOL)

  • Legal contract between shipper and carrier

  • Required for freight shipments (trucks, sea, rail)

  • Includes pickup/delivery details, freight class, special handling

4. Customs Declaration (CN22/CN23)

  • Postal declaration forms for small parcels crossing borders

  • Required by national postal services

  • Must be visible outside the package

5. Certificate of Origin

  • Sometimes required to prove the country where goods were manufactured

  • Used to determine tariff eligibility or trade compliance

6. Export/Import Licenses

  • Required for certain regulated goods (e.g., electronics, chemicals, weapons, food)

7. Return Label

  • Prepaid label included in the package for easy returns (common in e-commerce)


Why Shipping Labels and Documents Matter

1. Correct Delivery

If the label is wrong or unreadable, the package won’t reach the customer.

2. Carrier Processing

Sorting hubs and drivers rely on barcodes and routing codes to move the shipment efficiently.

3. Tracking

The tracking number on the label enables:

  • Internal order status

  • Customer visibility

  • Claims processing if something goes wrong

4. Customs Clearance

For cross-border shipments, documents like commercial invoices are legally required and must be accurate to:

  • Avoid delays

  • Prevent confiscation

  • Avoid penalties or fines

5. Cost Calculation

Shipping charges are based on package weight, size, and destination — all captured on the label or BOL.


How Are Shipping Labels Created?

  1. Manually via Carrier Website

    • e.g., FedEx, UPS, Poste Italiane

    • Suitable for small businesses

  2. Via eCommerce Platform

    • Shopify, WooCommerce, Amazon automatically generate labels during order processing

  3. Via WMS/ERP Integration

    • Large-scale operations connect order management to carrier APIs

    • Labels are auto-generated, printed, and tracked in bulk

  4. Through Shipping Software

    • ShipStation, Shippo, EasyPost, Sendcloud

    • Aggregate carriers, automate labeling, and offer discounted rates


Best Practices

  • Ensure barcode clarity: Smudged or distorted barcodes = delays

  • Use thermal printers: Better quality, no ink refills, faster output

  • Apply labels on flat surfaces: Avoid folds or overlaps

  • Double-check international forms: Misdeclared goods can be seized or delayed

  • Protect documentation in plastic sleeves: Especially for customs forms or invoices

  • Audit your shipping documentation regularly: Mistakes hurt customer trust and trigger compliance issues


In Summary

A shipping label tells carriers what to do. Shipping documentation tells governments and customers what’s inside, why it matters, and how it should be handled.

Together, they:

  • Enable smooth delivery

  • Ensure legal compliance

  • Protect against delays and losses

  • Reflect your professionalism as a seller

In logistics, a great product is worthless if the label is wrong — because logistics doesn’t care what’s inside until it knows where it’s going.

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