This guide will cover everything you need to know about small parcel shipping, from how it works to choosing the right carrier and optimizing costs.
Small parcel shipping is an essential component of e-commerce logistics. Whether you're sending individual orders to customers or replenishing stock at a retail location, small parcel shipping ensures fast and efficient delivery. This guide will cover everything you need to know about small parcel shipping, from how it works to choosing the right carrier and optimizing costs.
Small parcel shipping refers to sending an individual package through a shipping carrier. Generally, any handheld package weighing less than 70 pounds qualifies as a small parcel shipment. Some carriers, such as FedEx and UPS, allow small parcels up to 150 pounds.
1. Packaged Goods: Businesses package products into boxes, envelopes, or poly mailers.
2. Carrier Selection: Choose a carrier based on package size, weight, and delivery speed.
3. Shipping Labels & Tracking: Each parcel is assigned a shipping label with a unique tracking number.
4. Carrier Pickup or Drop-off: Businesses can drop parcels at a carrier location or schedule a pickup.
5. Sorting & Transit: The package moves through carrier distribution centers and hubs.
6. Last-Mile Delivery: The carrier delivers the package to the final recipient.
Small parcel shipping allows businesses to offer fast and affordable shipping, making it ideal for e-commerce.
Each parcel has a unique tracking number, allowing customers to monitor their shipments in real time.
Small parcel shipments can be cheaper than freight, especially for lightweight packages. Businesses can reduce shipping costs by leveraging negotiated carrier rates.
Merchants can select the best carrier for each shipment, optimizing delivery times and costs.
· Heavier packages cost more to ship.
· Dimensional weight (DIM) pricing can increase costs for large but lightweight items.
· Longer distances result in higher shipping fees.
· Domestic vs. international shipping impacts costs significantly.
· Different carriers have different pricing structures.
· USPS is often the cheapest for lightweight shipments, while UPS and FedEx provide better ground rates.
· Faster shipping (e.g., 2-day or overnight) costs more than standard ground shipping.
· Residential delivery fees
· Fuel surcharges
· Peak season pricing
· Best for lightweight packages (under 1 lb.)
· Affordable Priority Mail and First-Class options
· Ideal for B2C e-commerce businesses
· Competitive ground rates for heavier packages
· Strong tracking system
· Ideal for businesses needing reliable domestic and international shipping
· Best for business deliveries and specialized shipments (e.g., perishables)
· Faster express shipping options
· Higher pricing compared to USPS and UPS
· Serve specific areas with faster delivery times
· Lower costs for local deliveries
Working with a third-party logistics (3PL) provider like Daguer Logistics allows businesses to:
· Secure bulk shipping discounts
· Automate order fulfillment
· Reduce transit times with strategically located fulfillment centers
· Reduce dimensional weight costs by using appropriately sized boxes.
· Consider eco-friendly packaging to cut costs and appeal to sustainability-conscious customers.
· Use shipping software to compare rates across multiple carriers in real-time.
· Leverage carrier-specific discounts.
· High-volume shippers qualify for discounted commercial rates.
· A 3PL like Daguer Logistics negotiates carrier contracts for the best rates.
· Storing inventory in multiple locations reduces shipping distances.
· Faster delivery = happier customers.
At Daguer Logistics, we specialize in small parcel shipping solutions for e-commerce brands. Our fulfillment services include:
We partner with USPS, UPS, FedEx, and regional carriers to offer exclusive shipping discounts.
Orders are automatically processed, packed, and shipped from our fulfillment centers.
With warehouses across the country, we reduce transit times and shipping costs.
We provide tracking updates to ensure your customers always know where their package is.
Our 2-Day Express Shipping Program ensures that your customers receive their orders faster, increasing customer satisfaction and conversion rates.
Small parcel shipping is an affordable and efficient way to fulfill e-commerce orders. By selecting the right carriers, optimizing packaging, and partnering with a 3PL like Daguer Logistics, businesses can streamline their logistics operations and improve profitability.
For brands looking to scale, reduce costs, and enhance delivery speed, Daguer Logistics is your trusted partner in small parcel fulfillment.
A small parcel shipment typically weighs under 70 lbs. and is packed in a box, envelope, or poly mailer. It is shipped individually through carriers like USPS, UPS, or FedEx.
The cost depends on factors like package weight, dimensions, destination, and shipping speed. Partnering with a 3PL like Daguer Logistics can help secure lower rates.
Most shipping carriers provide real-time tracking updates through their websites or APIs. Businesses can also integrate tracking with their e-commerce platforms for customer convenience.
Yes! Many carriers now offer carbon-neutral shipping options. Businesses can also use sustainable packaging to reduce their environmental impact.
Daguer Logistics provides discounted shipping rates, automated order processing, multi-warehouse fulfillment, and advanced shipping analytics to optimize the entire shipping process.
