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Label Creation
Label creation is the final critical step before handover to the carrier. An incorrect shipping label not only leads to delays and investigation costs, but also permanently damages the customer experience. In the fulfillment context, label creation connects order processing, packaging, and shipping logistics into a seamless process – provided address data, tariff selection, and technical integration are correct.
Professional retailers and fulfillment service providers do not treat label creation as a side task at the packing station, but as a standardized, measurable workflow with clear responsibilities, quality controls, and KPIs.
What a shipping label must accomplish
A shipping label fulfills several functions simultaneously: It uniquely identifies the shipment, carries address and routing information, and documents the selected postage. For the carrier, the label is the central interface for automated sorting and delivery.
Mandatory information on the label
Every valid shipping label contains at least the following elements:
- Recipient address in readable form and as a machine-readable barcode
- Sender address or return information according to carrier requirements
- Shipment number (tracking ID) for tracking
- Routing information such as routing code, destination postal code, or hub identifier
- Product and tariff identification (e.g., parcel, small parcel, express)
- Weight and dimensions, where tariff-relevant or transmitted by the system
For international shipments, customs documents, HS codes, and Incoterm information are added. If this data is missing, the shipment often stops at the first sorting center.
Label creation in the fulfillment process
Label creation typically sits between packing completion and handover to the carrier. In the ideal workflow, picking, packaging, and label printing are closely interlinked so that no shipment leaves the warehouse without the shipment number and tracking status being recorded in the system.
Process flow: Label creation in fulfillment
From step 4 (label generation), system automation takes over the central part of the workflow – from API integration to tracking feedback.
Manual vs. automated creation
Small shops often start with manual label creation via carrier portals. This works with low volumes but does not scale. From around 20 to 50 shipments per day, connecting shipping software or a WMS with integrated label printing becomes worthwhile.
Technical fundamentals of label creation
Modern label creation is based on API interfaces from carriers or aggregators. The system transmits shipment data, receives a label in return as a PDF or ZPL file, and stores the shipment number in the order.
Data sources and interfaces
The most important data sources for label creation are:
- Shop or ERP system – provides order, items, and customer address
- WMS – adds weight, packaging size, and warehouse location
- Carrier API – calculates tariff, generates label and tracking ID
- Address validation – checks postal code, street, and house number before label printing
System integration for label creation
Order, items, and customer address as source data
Weight, packaging size, and warehouse location supplement order data
Tariff calculation, label generation, and tracking ID
Output of the finished label at the packing station
Label formats and printers
In e-commerce fulfillment, thermal printers with ZPL or EPL output dominate. The 100 × 150 mm (4 × 6 inch) format is the de facto standard for parcel labels. Smaller formats apply to letter and merchandise shipments.
Common print formats:
- ZPL – Zebra printers, high print speed, standard in fulfillment centers
- PDF – universal, suitable for laser printers and small volumes
- PNG/EPL – older systems, increasingly replaced by ZPL
Carrier selection and tariff logic
Before each label creation, the system must determine the appropriate carrier and tariff. The decision depends on destination zone, weight, dimensions, delivery time, and cost.
A multi-carrier strategy allows automatically selecting the cheapest or fastest carrier per shipment. Label creation must support rules that prioritize by zone, weight, and SLA.
Step by step: Label creation at the packing station
The packing station workflow connects physical work with digital label creation. A structured process reduces errors and increases throughput.
Standard process in 7 steps
- Scan order – call up pick list or packing order at the scanner
- Check items – match quantities and SKU against the order
- Pack and weigh – transmit actual weight to the scale
- Select carrier – manually or automatically based on rules
- Generate label – API call, validation of the response
- Print and apply label – flat, readable, without folds on the address
- Scan shipment – status "ready to ship", transmit tracking to shop
Checklist: Label creation at the packing station
- Order number scanned
- Recipient address complete and validated
- Weight correctly captured
- Correct carrier and tariff selected
- Label without print errors
- Barcode readable and undamaged
- Shipment number recorded in the system
- Parcel placed in handover zone
Quality control before handover
Spot checks are mandatory, not optional. Check at least 5% of all labels daily for readability, address accuracy, and consistency with the order. During peak seasons, experienced teams increase the sample rate to 10 to 15%.
Common errors and how to avoid them
Errors in label creation cause an average of 8 to 15 euros in rework costs per shipment – without considering customer dissatisfaction and returns.
Top sources of errors
- Typos in the address – street name, house number, postal code
- Incorrect weight – recalculation by carrier, margin loss
- Duplicate labels – two shipment numbers for one parcel, inventory chaos
- Missing customs data – international shipments stuck in customs
- Incorrect printer status – empty paper, weak thermal print, clogged head
Average error costs per error type
Preventive measures
- Enable address validation before label printing
- Connect scales directly to WMS or shipping software
- Printer maintenance plan with daily test label
- Train all packing staff on carrier-specific requirements
- Escalation process for unclear addresses before label creation
Bulk shipments and batch label creation
At higher shipment volumes, label creation switches from individual orders to batch processing. Multiple orders are collected, labels are generated in one run, and printed sequentially.
Advantages of batch creation:
- Lower API overhead per shipment
- Higher packing station throughput during peak phases
- Uniform carrier pickup can be planned
- Easier handover to sorting lines
Disadvantages:
- Less flexibility for short-notice cancellations
- Higher requirements for sorting logic after printing
- Errors in one batch may affect many shipments simultaneously
KPIs for label creation
Measurable metrics make weaknesses visible and enable continuous optimization.
Frequently asked questions about label creation
Can I change labels afterwards?
Only before handover; after that, cancellation and re-creation.
Which label format for DHL parcel?
100 × 150 mm thermal, ZPL recommended.
Do I need separate software?
Yes from medium volume, mandatory for multi-carrier.
What happens with an incorrect postal code?
Carrier rejects or investigation, costs charged to sender.
How do I integrate return labels?
Via carrier API or separate returns portal.
Legal and data privacy aspects
Shipping labels contain personal data. They must not be unlawfully archived, shared, or published on social media. Incorrect labels with wrong recipient data can fall under GDPR-relevant incidents if data reaches third parties.
Archive label PDFs only as long as necessary for complaints and accounting – typically 6 to 24 months depending on retention period. Access to label data in the system should be restricted on a role-based basis.
Conclusion: Label creation as a competitive factor
Fast, error-free label creation is not a detail, but the foundation for on-time delivery and satisfied customers. Those who organize picking, packaging, and label printing as one continuous digital process reduce costs, minimize complaints, and scale controllably even during peak seasons.
The entry pays off step by step: First address validation and scale integration, then multi-carrier integration, finally rule-based tariff selection and batch processing. Each stage brings measurable improvements – without completely rebuilding the warehouse.
Related topics
- Shipping labels and postage
- Shipping labels and postage (glossary)
- Shipping methods overview
- Carrier comparison: Hermes, GLS, DPD, UPS
- Packing station workflow
Last updated: July 6, 2026