How to Create a Shipping Label | Easy Guide for Small Businesses

Creating shipping labels doesn't have to be complicated or expensive. Whether you're learning how to create a shipping label for the first time or looking to streamline your label creation process, this comprehensive guide will show you how to generate shipping labels quickly, print shipping labels professionally, and save money on every shipment.

At Shippo, our goal is to simplify shipping for e-commerce stores and marketplaces of all sizes. Shipping can be complex, but we're here to take the burden of learning the ins and outs of optimizing e-commerce shipping off merchants' shoulders. Plus, you can save up to 90% on shipping labels with USPS, UPS, FedEx, and 40+ more carriers when you create online shipping labels through our platform.

What Are Shipping Labels and Why Do You Need Them?

Shipping labels are essential package labels that contain all the information carriers need to deliver your packages successfully. A properly formatted shipping label includes sender and recipient addresses, tracking numbers, service type, and postal codes—all organized in a standardized shipping label format that carriers can quickly scan and process.

Key components every shipping label must include:

• Sender (return) address
• Recipient delivery address
• Service type (Priority Mail, Ground, Express, etc.)
• Tracking number and barcode
• Package weight and dimensions
• Postage amount and carrier logo

Whether you're shipping one package or hundreds, learning how to create shipping labels efficiently is crucial for any business that ships products to customers.

How to Create a Shipping Label: Step-by-Step Guide

Method 1: Create Shipping Labels Online with Shippo (Recommended)

Step 1: Set Up Your Shipment

• Enter your package's size, weight, and dimensions
• Input sender and recipient addresses
• Select your preferred shipping service level

Step 2: Compare Shipping Rates

• Review rates across multiple carriers (USPS, UPS, FedEx, and more)
• Choose the best balance of cost and delivery speed for your needs
• Take advantage of discounted commercial rates

Step 3: Generate and Print Your Shipping Label

• Buy your shipping label at discounted rates
• Download your label as a PDF
• Print shipping labels on standard 8.5" x 11" paper or thermal labels

Watch our quick tutorial: Check out this how-to video that walks through the complete 3-step process for generating a label with Shippo.

Method 2: Create Shipping Labels Through Carrier Websites

While you can create basic shipping labels directly through USPS, UPS, or FedEx websites, you'll pay full retail rates and miss out on commercial discounts. This method works for occasional shippers but isn't cost-effective for regular shipping needs.

BONUS TIP: Use Shipping Label Templates

For businesses needing custom formatting, shipping label templates can be helpful. However, these require manual entry of tracking numbers and don't provide the automation benefits of integrated shipping platforms.

Shipping Label Format and Best Practices

Understanding proper shipping label format ensures your packages are processed quickly and accurately:

Address Formatting:

• Use clear, legible fonts
• Include complete ZIP codes (ZIP+4 when possible)
• Avoid abbreviations in street names when space allows
• Place labels on the largest face of the package

Label Placement:

• Center the label on the package's largest surface
• Avoid placing labels over seams or corners
• Ensure no part of the label wraps around edges
• Keep labels flat and wrinkle-free

Barcode Requirements:

• Never fold or crease barcode areas
• Ensure adequate white space around barcodes
• Use high-contrast printing (black on white)
• Test barcode readability before shipping large batches

How to Print Shipping Labels: Options and Equipment

Standard Printer Setup

Most businesses can print shipping labels using regular office printers:

• Paper: Standard 8.5" x 11" paper or adhesive label sheets
• Settings: Use "Actual Size" printing, no scaling
• Quality: Set to high quality for barcode clarity
• Adhesive: Consider half-sheet labels for easier application

Thermal Label Printers

For high-volume shipping, thermal printers offer advantages:

• Speed: Print labels faster than standard printers
• Cost: No ink or toner required
• Quality: Consistent barcode clarity
• Integration: Work seamlessly with shipping software

Popular thermal printer options include Zebra, DYMO, and Rollo models compatible with standard 4" x 6" shipping labels.

Free Shipping Label Options vs. Paid Solutions

Free Shipping Label Limitations

While some carriers offer basic free shipping label creation, these options typically include:

• Full retail pricing (20-50% higher than commercial rates)
• Limited carrier comparison options
• Manual processes for each label
• Basic tracking capabilities
• No bulk shipping features

Commercial Shipping Platform Benefits

Platforms like Shippo provide significant advantages:

• Discounted Rates: Access commercial pricing immediately
• Multi-Carrier Comparison: Compare rates across 40+ carriers
• Bulk Processing: Create multiple shipping labels simultaneously
• Integration: Connect with popular e-commerce platforms
• Automation: Streamline repetitive tasks
• Advanced Tracking: Proactive shipment monitoring

Electronic Shipping Labels: Going Paperless

Electronic shipping labels represent the future of package processing. Benefits include:

• Environmental Impact: Reduce paper waste
• Efficiency: Faster processing at sorting facilities
• Cost Savings: Eliminate label printing costs
• Accuracy: Reduce human error in manual processes

While fully electronic systems aren't universally available yet, platforms like Shippo are leading the transition by offering digital receipt and tracking integration.

Buy Shipping Labels: Cost Comparison Guide

Understanding shipping label pricing helps you make informed decisions:

Retail Rates (Post Office/Carrier Locations):

• Highest cost option
• No volume discounts
• Limited service options
• Manual processing required

Online Commercial Rates:

• 10-30% savings over retail
• Available through carrier websites
• Still limited to single-carrier options
• Basic automation features

Multi-Carrier Platform Rates:

• 20-90% savings through negotiated rates
• Access to all major carriers
• Advanced features and automation
• Bulk processing capabilities

Shipping Label Templates and Customization

While standard shipping labels work for most businesses, some situations require customization:

When to Use Custom Templates:

• Branded packaging requirements
• Special handling instructions
• International shipping documentation
• High-value item tracking

Template Resources:

• Carrier-provided templates
• Third-party design tools
• Shipping platform customization options
• Professional printing services

Remember that custom templates must still meet carrier specifications for address formatting, barcode placement, and size requirements.

Common Shipping Label Mistakes to Avoid

Address Errors:

• Incomplete ZIP codes
• Incorrect apartment/suite numbers
• Outdated business names
• Missing attention lines

Formatting Issues:

• Scaled or stretched labels
• Low-quality barcode printing
• Inadequate label adhesion
• Poor contrast ratios

Process Errors:

• Using wrong service types
• Incorrect package weights
• Missing required documentation
• Delayed label application

How to Generate Shipping Labels in Bulk

For businesses shipping multiple packages daily, bulk label generation saves significant time:

CSV Upload Methods:

• Prepare spreadsheet with recipient information
• Upload to shipping platform
• Review and validate addresses
• Generate multiple labels simultaneously

Integration:

• Connect shipping platforms to e-commerce systems
• Automate label creation from order data
• Reduce manual data entry
• Scale processing capabilities

Batch Processing Benefits:

• Consistent formatting across all labels
• Reduced processing time per package
• Lower error rates
• Simplified tracking management

Making Shipping Labels Work for Your Business

The key to successful shipping label creation lies in choosing the right combination of tools and processes for your specific needs:

For Occasional Shippers:

• Online carrier websites for basic needs
• Consider free options for very low volumes
• Focus on accuracy over speed

For Regular Shippers:

• Multi-carrier platforms like Shippo for rate comparison
• Commercial pricing for immediate savings
• Automation for efficiency

For High-Volume Shippers:

• Advanced shipping platforms with API integration (also offered by Shippo)
• Thermal printing equipment
• Bulk processing capabilities
• Analytics and optimization tools

Get Started with Professional Shipping Labels Today

Ready to streamline your shipping label creation process? Sign up for Shippo and start creating professional shipping labels with commercial pricing from day one.

With Shippo's shipping label platform, you get:

• Up to 90% savings on shipping labels compared to retail rates
• Access to USPS, UPS, FedEx, and 40+ carrier options
• Simple 3-step label creation process
• Professional shipping label format and printing
• No setup fees or monthly minimums
• Integration with popular e-commerce platforms

Our shipping API and e-commerce web app automate and streamline the entire process of creating shipping labels and tracking packages. With our user-friendly shipments dashboard and RESTful API, we provide e-commerce business owners all the tools needed to save time and money on shipping.

Whether you're a small business merchant selling on Shopify, Magento, Etsy, or other platforms, Shippo offers the most cost-effective way to create shipping labels and ship packages across the US and internationally. With the lowest USPS Priority Mail rates on the market and incredibly competitive international rates, merchants can save hundreds of dollars monthly on shipping costs.

Ready to create your first shipping label? Get started with Shippo - it's free! The process is simple: create your shipment, compare rates across carriers, buy your label at discounted rates, and print.

With Shippo, creating shipping labels is as easy as it should be.

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