Shipping Label
A shipping label is the machine-readable address and freight label stuck onto a parcel that carries everything the carrier needs for transport and delivery: recipient and sender address, a unique tracking number as a barcode, plus routing and product information.
A shipping label is the standardized, machine-readable label that identifies a parcel or pallet for transport by a carrier. It contains everything needed for delivery and tracking: the recipient and sender address, a unique tracking number as a barcode, routing codes for the carrier’s sorting facilities, and details on shipping method, weight and product. The shipping label is therefore the physical interface between the shipper’s inventory management system and the carrier’s network.
Today a shipping label is generated almost exclusively digitally: the shipper retrieves a label via the carrier’s software or directly from their ERP system through an interface, then prints it on a thermal printer and applies it to the shipment. The printed barcode – often a Code 128 or a 2D data matrix code – can be scanned at every stage of the transport route, so the shipment remains seamlessly traceable from goods issue to the recipient’s doorstep.
At a glance
- Machine-readable address and freight label on a parcel or pallet
- Core elements: recipient, sender, tracking number as a barcode, routing code
- Generated digitally (carrier software or ERP interface) and printed on a thermal printer
- Basis for sorting, shipment tracking and proof of delivery
- Not to be confused with a delivery note, return or dangerous-goods label
Components of a shipping label
Even though every carrier uses its own layout, the information content of a shipping label is largely standardized. The header shows the recipient address and – set smaller – the sender address. Central and visually dominant is the barcode with the tracking number: it encodes the unique tracking ID under which the shipment is managed in the carrier’s system. The label is supplemented with routing information that tells the sorting facilities which depot and which tour the parcel runs through, along with details on shipping product, weight and the shipper’s reference numbers.
Many labels also contain a sort-relevant plain-text line (such as the destination depot as an abbreviation), delivery instructions (cash on delivery, age verification, time window) and optional icons for special services. International shipments add customs data and a goods-value reference. The label is therefore less a plain address tag than a compact data carrier that maps the entire transport order in machine-readable form onto just a few square centimeters.
Barcodes and formats
Technically, linear barcodes such as Code 128 dominate, as do 2D codes like Data Matrix or QR, which hold more data in a small area. As a label size, the 100 × 150 mm format has become established in parcel shipping and is output on common thermal or thermal-transfer printers without ink. The carrier usually returns the layout data as a print-ready PDF or ZPL file, so the shipper only has to print and apply it – they do not need to know the encoding itself.
How a shipping label is created
The process begins as soon as an order is ready to ship. The shipper hands the shipment data – recipient address, weight, dimensions, the desired shipping product and any add-on services – to the carrier’s system. The carrier reserves a tracking number, determines the routing and returns a finished label. This retrieval can be done manually in the carrier’s shipping software, but more conveniently is automated via an API interface or a specialized multi-carrier shipping software that bundles several carriers.
After printing, the label is applied to the shipment and, at goods issue, handed to the driver together with the other parcels. At the same time the shipper reports the shipment data electronically to the carrier (pre-advice), so the network already expects the parcel. From that moment, every scan of the barcode documents a status change – from arrival at the depot through transport to successful delivery, which is recorded as an electronic proof of delivery.
Shipping labels in the ERP system
In an integrated inventory management system, the shipping label is not an isolated print job but the final step of an end-to-end process. After picking and packing, the ERP retrieves the label through a carrier interface, assigns the returned tracking number to the order and posts the goods issue. The tracking ID thus flows automatically into the document and can be passed on to the customer in the shipping confirmation – without anyone manually typing numbers or switching to separate carrier software.
The advantage of this integration lies in error avoidance and speed. The address data comes directly from the customer master data and the order, the weight from the item master data or a connected scale, and the right shipping product can be selected automatically via rules (for example by weight, destination country or goods value). If label printing falls outside the running pick-and-pack process, a break arises that costs time and encourages transposed digits. That is exactly why cleanly connecting the carriers is one of the most rewarding automations in e-commerce fulfillment.
Multi-carrier and shipping rules
Those who use several carriers in parallel often control label generation via a multi-carrier solution or shipping rules stored directly in the ERP. Based on destination country, weight, shipment value or customer preference, these automatically choose the cheapest or fastest carrier and generate the matching label. This creates a uniform workflow for the packing station even though different networks are served in the background.
Distinctions: shipping label, delivery note and return label
The shipping label is easily confused with other papers accompanying a shipment, but it serves a distinct function. The delivery note is a commercial document that lists the shipment contents for the recipient; it is enclosed with the goods but does not control the transport. The shipping label, by contrast, is intended solely for the carrier and applied visibly on the outside, because it must be scanned at every sorting station.
A return label is a shipping label for the return journey: it addresses the parcel back to the retailer or a returns center and carries its own tracking number. Distinct from these are dangerous-goods and warning markings (for batteries or liquids, for instance), which are applied additionally and follow legal transport regulations. All of these labels can exist side by side on one shipment – but the shipping label remains the one that determines the parcel’s path through the network.
DACH specifics and practice
In the DACH region several large carriers share the market – in the parcel segment above all DHL, DPD, GLS, Hermes and UPS, in Austria additionally the Austrian Post, and in Switzerland the Swiss Post. Each requires its own shipment data and delivers its own label format, which is why shippers in practice almost always use an intermediary software or ERP connection instead of operating each portal individually.
For cross-border shipping within the DACH region, note that Switzerland is not part of the EU customs territory: shipments from Germany or Austria to Switzerland require customs data and commercial invoices, which are often transmitted electronically together with the label. Within the EU, customs clearance is not needed, yet correct weight and address data remain decisive, because incorrect details lead to surcharges or delivery problems. Well-maintained data quality in the ERP pays off here directly in smooth shipping.
Example
Example: online retailer with 300 parcels per day
An e-commerce retailer for sports accessories initially generated its shipping labels manually in the portals of two parcel services. The packing employee typed in the address and weight, printed the label and afterwards manually transferred the tracking number back into the ERP so the customer would receive a shipping confirmation. With 300 shipments a day, this cost a lot of time and repeatedly led to wrong or entirely untransmitted tracking numbers.
After connecting the two carriers to the ERP via API, the process now runs within the pick-and-pack flow: at the packing station the order is scanned, the system automatically selects the right carrier based on weight and destination country, retrieves the label, prints it on the thermal printer and writes the tracking number directly into the order. The shipping confirmation with a tracking link goes automatically to the customer. Label printing now takes only seconds, transmission errors have practically vanished, and the goods issue is posted at the same time.
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