How to Make a Shipping Label: Best Practices

Whether you deal in business-to-business or direct-to-consumer sales, direct shipping is an increasingly important part of all product-based businesses. Worldwide eCommerce sales went from $26 billion to $5.2 trillion between 1998 and 2021, and it’s estimated that 16.6% of consumer spending will be online in 2025.

Knowing how to make a shipping label and securely place it is crucial to customer satisfaction. A properly printed and placed label reduces long shipping times and incorrect shipments, guaranteeing a good relationship between your online store and customers.

What’s Needed to Create Shipping Labels

There are 6 primary pieces of information used on all shipping labels:

1. The Shipping Carrier’s Barcode

You must include a barcode that the shipping service uses to track packages.

There are several formats read by different shipping software including USPS shipping’s Intelligent Mail barcode, UPS MaxiCode, and FedEx’s FDX1D.

These codes include identifiers for individual packages, as well as shipping information. This code is scanned at each step in the shipping process from pickup at the post office to delivery at the customer’s house.

2. The Shipping Carrier’s Tracking Number

A human-readable tracking number is necessary in case the barcode gets damaged.

3. A Destination Address Label

You need to clearly identify where the package is headed. This helps carriers identify the container if the tracking information is damaged and identifies the intended recipient when it arrives at their address.

4. The Return Label

Include a return address so it can find its way back to you if it can’t be delivered.

5. The Package Weight

You need to include the weight of the package. The weight doesn’t just determine shipping costs. It’s also used to prevent the overloading of trucks and shipping containers.

6. The Delivery Class

This is the type of shipping used for the package. For example, common USPS classes include Priority Mail, First Class, and Flat Rate boxes.

Shipping labels also include a user segment or additional information segment. This space is used for information that doesn’t directly concern the carrier, including company logos, Return Merchant Authorization (RMA) numbers and identifiers like “2 of 3 packages” for multi-container orders.

→ Free Download: CTM Guide to Shipping Label Requirements Across Carriers

Information For Specialty Packages

Other information may be required, depending on the type of shipment and where you ship from and to.

International Shipping Addresses

International shipments usually require a list of items included in the package, as well as their value and weight. The USPS has a page dedicated to customs forms and required information for shipping to countries around the world.

Hazardous Shipments

Hazardous materials, including lithium batteries, also need information identifying hazards and their safe handling practices. All packages require separate hazard labels, while some carriers also require hazard information directly on the shipping label.

Hazardous containers are usually limited to ground-based shipping classes for safety. USPS packages require the statement “HAZMAT – SURFACE TRANSPORTATION ONLY” below the return address, while FedEx labels have a hazardous material identifier next to the shipping class.

Labeling information is adapted from GHS standards, and a separate GHS label may be required by the carrier.

Label Placement and Sizing

To create shipping labels, many online stores use first or third-party systems to format the label. As long as you enter the correct information, you will get a label design that meets the carrier’s requirements. Care must be taken to ensure the label remains intact and legible during shipping:

Labels should always be placed on the largest side of the container.
Other barcodes should be covered, whether they’re from old shipping labels or used for other identifiers, like UPC codes.
Nothing should cover the label. Even clear tape can interfere with barcode scanners.
Labels should not be placed over box seams. As the box flexes, it can wrinkle or split the label. International shipments may be opened in customs to verify the container’s contents, destroying the label.

Along with standard formats, carriers have standard label sizes. Here are the sizes currently in use by popular carriers:

USPS – 4 x 6, 4 x 4 and 6 x 3 inches
UPS – 4 x 6 inches for domestic shipping and 4 x 8 inches for worldwide shipping
FedEx – 4 x 6 inches and 8.5 x 11 inches
DHL – 10 x 16.2 cm, or approximately 4 x 6.4 inches

Aside from DHL, the preferred label size for these carriers is 4 x 6 inches. Smaller USPS labels are used for small and odd-shaped packages, while FedEx’s 8.5 x 11 inch labels are preferred for unusually large packages. Currently, first party UPS label formatting only supports 4 x 8 labels, even when printing domestic labels. However, third-party printing software supports 4 x 6 labels for domestic shipping.

How to Print Shipping Labels

Print-and-apply labelers have a print engine that adds information to labels before application. These machines allow you to complete pre-printed labels with unique information like shipping dates and addresses. That way, you can make a shipping label from scratch, or have standard design elements like borders pre-printed to speed up on-site printing.

The PLC stores label templates and can generate both text and barcodes. This onboard computer connects to your label generation system, receiving tracking numbers, addresses and other unique information for each label. It uses this information to complete the label design and send it to the print engine. The printed label is then applied to the container.

There are two printing methods used by print engines. Direct thermal printers heat thermal paper, turning it black. The print fades and the thermal label darkens over time, and it usually isn’t abrasion resistant. This is usually a good choice for shipping label printing since the print only needs to last a couple weeks.

However, the dependence on barcodes and QR codes for tracking has pushed the industry to embrace thermal transfer printing. This process melts ink from a ribbon onto the label. This creates an image that won’t change when exposed to heat and UV light.

It also allows the use of abrasion and chemical resistant labels. This ensures information remains legible to computers through the shipping process.

Thermal transfer printing is the preferred choice for containers that may be delayed in transit, such as international shipments. It is also required for labels containing hazardous material information, unless that information is duplicated elsewhere on the container.

While print engines support several print resolutions, the standard for shipping label printing is 300 dpi. This balances speed against the clarity required to make 6 and 7 point fonts legible.

Take the Headache Out of Applying Shipping Labels

Whether you run a massive, multinational online store or run a small business on eBay, paying shipping rates on returns and losing customers to long shipping times can really hurt your revenue.

Now that you know how to make a shipping label, the next step is to find a print and apply label applicator that can help you ship orders fast without compromising quality.

Start by contacting CTM Labeling Systems. We have equipment that works with a wide range of containers, and we have distributors who will work with you to find a solution that delivers consistent results.