Parcel Shipping
Small-package shipping to US consumers: how carriers price and deliver parcels, the surcharges that inflate invoices, and the services DTC brands use most.
Additional Handling SurchargeA per-package fee that UPS and FedEx charge for packages needing manual handling because of length, weight, or packaging, such as heavy cartons or items not fully encased in corrugated board.Address ValidationThe process of checking and standardizing a shipping address against postal and carrier data before a label is printed, flagging addresses that are incomplete, misspelled, or undeliverable.Billable WeightThe weight a carrier charges for: the greater of actual weight and dimensional weight, rounded up to the next pound.Carrier ClaimA formal request to a carrier for reimbursement of a package that was lost, damaged, or delivered with missing contents, supported by proof of value and shipment details.Carrier PickupA scheduled or on-demand collection of outbound packages by a carrier from a warehouse, store, or office, instead of the shipper dropping them off at a carrier location.Cold Chain ShippingThe shipping of perishable or temperature-sensitive goods, such as food, meal kits, and some pharmaceuticals, in insulated packaging with refrigerants so products stay within a safe temperature range.ConsolidatorA company that combines parcels from many shippers to sort and inject them into USPS or other networks at lower rates.Cubic PricingA USPS pricing method for Priority Mail and Ground Advantage packages up to 0.5 cubic feet and 20 pounds that charges by package volume tier and zone instead of weight.Delivery Area SurchargeDASA fee carriers add for deliveries to ZIP codes they classify as less accessible, such as rural or remote areas.Delivery ExceptionA carrier tracking status indicating that an unexpected event, such as weather, a bad address, damage, or a missed recipient, has delayed or interrupted a package's delivery.Delivery PromiseThe estimated delivery date shown to a shopper on the product page or at checkout.Dimensional WeightDIM weightA billable weight that carriers calculate from package volume. The carrier charges whichever is greater, actual weight or dimensional weight.First MileThe leg from the brand's or 3PL's warehouse to the carrier's first sorting facility.Flat Rate ShippingA carrier pricing option, best known from USPS Priority Mail Flat Rate, that charges one price for a specific box or envelope regardless of weight or destination zone, up to 70 pounds.Fuel SurchargeA percentage added to transportation charges that moves with published diesel or jet fuel price indexes.General Rate IncreaseGRIA carrier's annual list-price increase, typically announced in the fall and effective in January.Hazardous Materials ShippinghazmatThe regulated shipping of goods classified as dangerous, such as aerosols, flammable liquids, and lithium batteries, which requires correct classification, packaging, marking, and carrier approval.InjectionDelivering presorted parcels directly into a carrier's facility (for example a USPS destination delivery unit) rather than having the carrier pick them up.Last MileThe final leg of delivery from a local station or hub to the customer's door.Lithium Battery ShippingThe shipment of lithium ion or lithium metal batteries, alone, packed with equipment, or installed in equipment, under dangerous goods rules that set packaging, labeling, and quantity limits.Negotiated RatesDiscounted parcel prices agreed in a contract between a shipper and a carrier, typically as percentage discounts off published rates plus reduced or waived surcharges and minimums.Oversize PackageA parcel whose length or combined length and girth exceeds a carrier's standard size limits, triggering large package surcharges and minimum billable weights.Parcel SelectA USPS destination-entry parcel service in which shippers or consolidators drop presorted packages at USPS facilities near the recipient in exchange for lower postage.Peak SurchargeA temporary fee carriers charge during high-volume periods, mainly from October through January.Porch PiracyThe theft of delivered packages from doorsteps, porches, or building lobbies after the carrier has marked them delivered.Priority MailA USPS expedited parcel service with a 1 to 3 business day delivery standard for packages up to 70 pounds, priced by weight and zone, by flat rate, or by cubic tier.Proof of DeliveryPODA carrier record confirming that a package was delivered, typically showing the date, time, and location, and sometimes a photo, GPS point, or recipient signature.Regional CarrierA parcel carrier that serves a specific part of the country, often with lower rates and fewer surcharges than national carriers.Residential SurchargeA carrier fee applied to deliveries to a home rather than a business address.Return to SenderRTSA carrier status for a package that could not be delivered, because of a bad address, refusal, or unclaimed pickup, and is being sent back to the shipper.Shipping InsuranceCoverage that reimburses a shipper for a package that is lost or damaged in transit, bought either as declared value from the carrier or as a policy from a third-party insurer.Shipping LabelA printed label carrying the carrier barcode, tracking number, service level, and addresses that a carrier scans to accept, route, and deliver a package.Shipping ManifestA document or electronic record listing every package handed to a carrier in one pickup or drop-off, used to confirm acceptance of the whole batch at once.Shipping ZoneA carrier's measure of distance between the origin and destination ZIP codes. In the contiguous US, parcel zones run from 2 (closest) to 8 (farthest).Signature ConfirmationA paid carrier add-on that requires someone at the delivery address to sign for a package, with adult signature versions requiring the signer to be 21 or older.SurchargeA fee added to the base parcel rate for specific conditions, such as residential delivery, delivery area, additional handling, large package, peak season, or fuel.Time in TransitThe number of business days a carrier takes to move a package from first scan to delivery, which depends on service level, origin, destination, and shipping zone.Tracking NumberA unique identifier a carrier assigns to a package that links every scan event, from acceptance to delivery, so shippers and recipients can follow its progress.USPS Ground AdvantageA USPS ground parcel service for packages up to 70 pounds with a 2 to 5 business day delivery standard, launched in July 2023 to replace First-Class Package Service and Parcel Select Ground.Zone SkippingConsolidating many parcels into a truckload, moving them close to their destination region, and injecting them into a carrier network there.