All About Parcel Shipping and How to Ship Packages for Business

Let’s dive into the definition of parcel shipping, how much it costs, the best way to ship a package, and how to get your parcels ready. We will also compare small parcel shipping to other shipping methods like less than truck load (LTL) and full truck load (FTL) shipping. 

1. What is parcel shipping?
   a. What is considered a small parcel for shipping?
2. How much does parcel delivery cost?
   a. Is small parcel shipping cheaper than LTL?
3. How does parcel shipping work?
4. What is the best way to ship a package?
   a. Best parcel shipping services
   b. Best ways to save money on shipping
5. How to prepare packages for shipping?
6. Benefits of small parcel shipping vs. LTL or FTL
7. Key takeaways
8. Ready to start shipping small parcels?

Parcels typically fit in standard shipping boxes, padded envelopes, or poly bags, so carriers like USPS, FedEx, and UPS can process these shipments through their regular delivery channels. There are different parcel delivery service options, including standard shipping, express delivery, and even same-day services for urgent needs.  

• Typically lightweight and compact
• Usually under 150 lbs. (68 kg)
• Package size and weight limits vary by carrier:
• USPS – No more than 70 lbs. and 108 inches combined length + girth (distance around thickest part)
• UPS – No more than 150 lbs. and 108 inches long
• FedEx – No more than 150 lbs., up to 119″ in length and 165″ in combined length + girth

• Refers to heavier and bulkier items not eligible for parcel shipping
• Usually over 150 lbs. (68 kg)
• May require special handling, packaging, and transportation, such as freight services, or even the use of pallets or crates
• May involve additional considerations like freight trucks, lift gates, or freight-forwarding services
• Usually delivered to a business location with a loading dock or bay, such as a warehouse or distribution center

Depending on what you’re shipping and where it’s going, you can expect to pay anywhere from less than $5 to over $100 for parcel shipping services. It’s generally the cheapest way to ship, at least on a per-shipment basis. 

All costs are based on multiple factors, such as package size, weight, delivery speed, and how far the package must travel. Other expenses such as shipping insurance, special handling requirements, large parcel fees, or special services may add to the shipping cost as well. 

If you frequently ship smaller items in bulk, sending a pallet via LTL may end up being cheaper than parcel shipping. For example, a single 8x8x8 one-pound parcel delivered within the same U.S. state may cost less than $5.00 to ship via a ground shipping service.

However, a 200 pound, 48x48x40 pallet of 180 units going to the same location may cost $170.00 to ship using LTL or freight shipping services. That equals less than 94 cents per unit to ship LTL—a significant cost savings over $5.00 to ship a single unit via parcel services.

It generally makes sense to use parcel shipping instead of LTL for direct-to-consumer or business-to-consumer shipments. Parcel is also preferrable for business-to-business distribution of time-sensitive or temperature-sensitive goods that require special shipping services. For example, Cabot Creamery uses parcel shipping for certain cheese shipments.

For small parcels, the shipping process is straightforward:

1. Pack your item securely in a sealed box or poly bag. Then, measure the length (longest side), width, and height of your package. Weigh your package and record the weight in pounds and ounces.
2. Choose a carrier. Carriers like UPS, FedEx, and USPS have domestic and international networks to help transport parcels. They offer different shipping service options based on your desired delivery date, destination country, and other factors.
3. Print a shipping label for your desired carrier with the destination address, package dimensions, package weight, and any customs details or special instructions needed. You can create a shipping label online through the carrier’s website or a multi-carrier shipping software site and print it with your home, office, or warehouse printer.
4. Attach the shipping label to your package. Then, you can either schedule a carrier pickup at your location, or you can drop the package off at a shipping location such as the post office or a UPS store.
5. Track your shipment. Most carriers provide a tracking number so you can check the status of your package anytime. You might even get alerts when it’s out for delivery. This keeps both you and the recipient updated on when to expect it, giving you peace of mind.
6. Once you give the package to a carrier, it goes through their system, is sorted, and the carrier delivers it to the recipient’s address. Easy, right?

• Best for small, light packages: Use USPS Ground Advantage, USPS Priority Mail, FedEx Ground, or UPS Ground for affordable and fast U.S. domestic options.
• Best for small, heavy parcels: USPS Priority Mail Cubic offers the best rates for packages that qualify, and you can save up to 89% on shipping. Learn about USPS Priority Cubic.
• Best for fast delivery: Use FedEx Express, UPS Next Day Air, or USPS Priority Mail Express for time-sensitive shipments.
• Best for international shipping: Use DHL, FedEx International, or USPS Priority Mail International for reliable international delivery.

Using shipping software to print labels online is the best way to save money on shipping. It will always be more expensive to ship from a retail location such as the post office or FedEx store than printing your own shipping labels. Here’s how shipping software saves you money:

• Compare rates: Online tools like Descartes XPS Shipä, Pirate Ship, and ShipStation allow you to compare rates for different carriers and services. You can automate shipping rate comparison to save time and money on every shipment.
• Shipping discounts: Shipping software platforms negotiate discounted rates with carriers and pass the savings on to you. In many cases, you can save up to 89% on small parcel shipping instead of paying retail rates.
• Automate workflows: Use business rules to automate shipping workflows, create efficiencies, reduce labor costs, and prevent mis-ships.

Getting your packages ready for shipping is easy if you follow a few key steps.

Start by gathering the right materials. As a rule of thumb, your shipping station should include:

• Sturdy corrugated cardboard boxes
• Padded envelopes
• Bubble wrap
• Strong packing tape
• Box cutter knife
• Scissors
• Filler such as foam peanuts or crumpled paper
• A way to print shipping labels

To save money on shipping, try to use as small a box as possible. Choose a box that is just slightly bigger than your item to allow for cushioning. For fragile items, add extra padding like foam peanuts, Styrofoam spacers, or crumpled paper.  

To avoid damage, don’t overload the package. Everything should fit within the box or envelope without pressing it out of shape or straining it to close. If you are sending multiple items, pack them separately within the outer package to keep them safe during shipping. There should be no extra room for your object to rattle around in the box. 

Seal the package well with strong packing tape.

After your package is packed and taped shut, use a ruler or tape measure to find the length (longest side), width, and height of your package. If the package is irregularly shaped, measure the length and girth (distance around the thickest part of your package). Place your package on a scale and record the parcel weight in pounds and ounces. You will need this information for the shipping label.

Accurate shipping labels are essential to prevent mis-ships and shipping delays. Use shipping software to create shipping labels online. The shipping program will perform address validation and highlight any incorrect information. Double check the recipient’s name, address, contact number, and your return address, then print your shipping label. If you are shipping internationally, the software will also help you fill out customs forms and other required paperwork.

Apply your shipping label to the package, and it’s ready to ship. You can now use the shipping software or the carrier’s website to schedule a carrier pick up, where the delivery driver comes to your location to take the package. This option is best for multiple packages going out on the same day. Otherwise, you can drop the package off at the carrier’s retail location, such as the post office, or a small parcel drop box. 

Save money on shipping

Small parcel shipping has many benefits, especially when compared to other delivery options. One main advantage is its cost-effectiveness. For businesses looking to save money, small parcel services are often cheaper than delivering packages yourself or using traditional LTL or FTL methods for small, lightweight items.

Simplify shipping

Simplicity is another reason larger businesses choose small parcel delivery over LTL, FTL, or in-house transportation management. Maintaining your own fleet or coordinating logistics for large truck shipments requires complex planning and specialized skillsets. In contrast, you can automate small parcel shipping processes, so relatively unskilled workers can complete the tasks.

Agile shipping strategy

Another plus is flexibility. With choices from multiple carriers and services, from standard to express and same-day delivery, you can pick the service that best fits your needs. Why wait until you have a full pallet or truckload when you can process and ship orders immediately?

Faster shipping

Additionally, speed and reliability are big benefits. Thanks to modern logistics and tracking systems, parcels are delivered quickly and dependably. This leads to happy customers and smoother operations. In today’s fast-moving world, being able to deliver orders quickly and on time can give you a competitive advantage.

1. Use parcel shipping services when it’s more cost-effective or convenient than delivering items yourself.
2. Small parcel shipping is generally cheaper than LTL or FTL shipping methods, so consider using this service whenever shipments meet the criteria.
3. Using large national carriers such as USPS, UPS, FedEx, and DHL for shipping simplifies logistics and increases the flexibility of your shipping strategy.
4. Preparing packages for parcel shipping is easy, especially if you use shipping software to automate the process of creating and printing shipping labels.

Johannes Panzer is the Head of Industry Solutions for Ecommerce at Descartes. With over 17 years in ecommerce fulfillment and shipping SaaS, Johannes brings a wealth of experience in uniting ecommerce business leaders with the right tools and techniques to overcome logistics challenges and drive profitable growth.