Prepaid Shipping Labels: Save Money on Every Package You Send

Prepaid shipping labels offer significant savings compared to paying at the post office or carrier location. Whether you're shipping one package or thousands, understanding prepaid options can reduce your shipping costs by 20-50% or more.

What Are Prepaid Shipping Labels?

Definition

A prepaid shipping label is a shipping label with postage already paid, created before you drop off your package. The label includes:

• Sender address (return address)
• Recipient address
• Shipping service selected
• Tracking number
• Barcode for scanning
• Postage amount (often hidden on commercial labels)

How They Differ from Retail

Retail shipping:

• Go to post office/carrier location
• Wait in line
• Pay retail rates
• Get label printed on-site
• Higher prices, less convenient

Prepaid labels:

• Create online or through software
• Print at home/office
• Access commercial/discounted rates
• Drop off or schedule pickup
• Lower prices, more convenient

Types of Prepaid Labels

By Carrier

USPS prepaid labels:

• Created via USPS.com, Click-N-Ship
• Commercial Base or Commercial Plus pricing
• Services: Priority Mail, Ground Advantage, First-Class, etc.
• Savings: 10-30% off retail rates

UPS prepaid labels:

• Created via UPS.com or UPS account
• Published or negotiated rates
• Services: Ground, 2-Day, Next Day, etc.
• Savings: Varies by volume/relationship

FedEx prepaid labels:

• Created via FedEx.com or account
• Published or contracted rates
• Services: Ground, Express, Home Delivery
• Savings: Depends on account level

By Source

Direct from carrier:

• Create account on carrier website
• Access to their rates
• Single-carrier focus
• Free to create account

Through shipping software:

• Multi-carrier options
• Often better rates than direct
• Additional features (rate shopping, batch printing)
• Monthly fee or per-label fee possible

Through e-commerce platforms:

• Shopify Shipping
• Amazon Buy Shipping
• eBay Labels
• Rates negotiated by platform

By Use Case

Outbound shipping labels:

• Sending packages to customers
• Primary business shipping
• Most common type

Return labels:

• Prepaid for customer returns
• Pay-on-use options available
• Included in package or emailed

International shipping labels:

• Customs documentation included
• Commercial invoices integrated
• Duties payment options

Where to Get Prepaid Labels

USPS Options

USPS.com Click-N-Ship:

• Free account
• Commercial Base pricing
• Print labels online
• Up to 25 labels at once
• Best for occasional shippers

Stamps.com:

• Subscription required ($19.99+/month)
• Better rates (Commercial Plus)
• More features
• Batch printing
• Insurance options

Pirate Ship:

• Free account
• USPS Commercial Plus rates
• No monthly fees
• Simple interface
• Great for small sellers

Atoship:

• Multi-carrier platform
• Discounted USPS rates
• Plus UPS, FedEx
• Rate comparison
• Business features

UPS Options

UPS.com:

• Free account
• Published rates
• Individual or batch labels
• Pickup scheduling

UPS CampusShip:

• For businesses
• Multiple users
• Cost center tracking
• Enhanced features

FedEx Options

FedEx.com:

• Free account
• Published rates
• Standard and hold-at-location options
• Pickup scheduling

FedEx Ship Manager:

• Business solution
• Higher volume features
• Account management
• Reporting tools

Third-Party Platforms

Shippo: Free tier, multi-carrier, API EasyShip: International focus, multi-carrier ShipStation: Full-featured, subscription required Ordoro: Inventory + shipping

How to Create Prepaid Labels

Basic Steps

Step 1: Choose your platform

• Create free account
• Connect payment method
• Set up default sender address

Step 2: Enter shipment details

• From address
• To address
• Package weight
• Package dimensions (if needed)

Step 3: Select shipping service

• Compare available options
• Check delivery time
• Review total cost

Step 4: Pay and create label

• Add funds or pay per label
• Download PDF or print directly
• Label includes tracking number

Step 5: Print and apply

• Print on 4×6 label paper (best)
• Or print on regular paper and tape
• Affix securely to package

Printing Options

Thermal printers (recommended):

• No ink needed
• 4×6 labels
• Fast printing
• Popular models: DYMO, Rollo, Zebra
• Cost: $100-300

Regular printers:

• Use plain paper
• Cut and tape to package
• 8.5×11 with label on half-sheet
• Functional but less professional

Label printers for sheets:

• Avery labels
• Peel and stick
• Works with any printer

Saving Money with Prepaid Labels

Rate Discounts

USPS Commercial pricing:

Rates approximate and subject to change

Platform discounts:

• Pirate Ship: USPS Commercial Plus rates
• Shippo: Discounted rates across carriers
• Atoship: Negotiated multi-carrier rates

Volume Discounts

How they work:

• Ship more, pay less per package
• Tiered pricing structures
• Annual volume considerations
• Negotiation possible at scale

Example tiers:

• 0-100 packages/month: Standard rates
• 100-500: 5-10% discount
• 500-1000: 10-20% discount
• 1000+: Custom pricing

Cubic Pricing

What is cubic pricing?:

• Pricing based on package dimensions, not weight
• For small but heavy packages
• USPS Priority Mail Cubic
• Significant savings possible

When it saves money:

• Items under 20 lbs
• Small box sizes (0.1-0.5 cubic feet)
• Dense products
• Distance doesn't affect price as much

Regional Rate

USPS Regional Rate:

• Flat Rate boxes with zone-based pricing
• Can be cheaper than Priority Mail
• For nearby deliveries especially
• Two box size options

Return Labels

Types of Return Labels

Pre-printed in package:

• Included with original shipment
• Customer applies to return package
• Charged whether used or not (usually)

Scan-based return labels:

• Only pay when scanned
• Ideal for low return rate items
• Reduces waste
• Available through most platforms

Digital return labels:

• Email to customer when requested
• Print at home or drop off
• QR code options (carrier prints at location)
• Most cost-effective for sellers

Return Label Best Practices

Cost management:

• Use scan-based when possible
• Consider customer-pay options
• Offer store credit for no-label returns
• Track return rates by product

Customer experience:

• Easy process = happier customers
• Include clear instructions
• Multiple return options
• Prepaid increases return likelihood

Batch Label Creation

When to Use Batch Printing

Beneficial for:

• 5+ orders per day
• Consistent shipping needs
• Time-constrained operations
• Multiple marketplace orders

How Batch Printing Works

Export orders from platform(s)

Import to shipping software

Auto-populate addresses

Select services (rules-based possible)

Print all labels at once

Apply to packages

Software for Batch Labels

ShipStation: Full-featured batch processing Pirate Ship: Simple batch with CSV upload Atoship: Multi-channel batch processing EasyShip: International batch capabilities

Advanced Prepaid Label Features

Address Validation

Why it matters:

• Prevents delivery failures
• Reduces address correction fees
• Improves customer experience
• Available in most software

What it checks:

• Valid address format
• ZIP code accuracy
• Deliverable address
• Apartment/suite numbers

Insurance Options

Carrier insurance:

• USPS: Free up to $50 (Priority)
• UPS: Variable by service
• FedEx: Variable by service

Third-party insurance:

• Often cheaper for higher values
• Shipsurance, U-PIC, Parcel Pro
• Integrate with shipping software

Tracking Integration

Features to look for:

• Automatic tracking upload to sales channel
• Customer notification automation
• Tracking page branding
• Delivery confirmation alerts

Common Mistakes to Avoid

Mistake 1: Wrong Package Dimensions

Problem: DIM weight charged incorrectly Solution: Measure accurately, use right box size Impact: Overpaying or carrier adjustment charges

Mistake 2: Invalid Addresses

Problem: Returned packages, correction fees Solution: Use address validation Impact: $15-20+ per incorrect address

Mistake 3: Wrong Service Selection

Problem: Overpaying for speed, underdelivering on promise Solution: Match service to customer expectation and cost Impact: Wasted money or disappointed customers

Mistake 4: Not Voiding Unused Labels

Problem: Paying for labels never shipped Solution: Void labels promptly, track usage Impact: Direct cost waste

Mistake 5: Missing Pickup Deadlines

Problem: Package sits overnight, late delivery Solution: Know cutoff times, schedule pickups Impact: Customer complaints, carrier issues

Getting Started Checklist

Initial Setup

• [ ] Create accounts on carrier sites (free)
• [ ] Evaluate shipping software options
• [ ] Get a scale (postal scale recommended)
• [ ] Decide on label printing method
• [ ] Set up default addresses

First Labels

• [ ] Start with familiar service (USPS Priority Mail is easy)
• [ ] Test with non-urgent package
• [ ] Verify tracking works
• [ ] Check delivered as expected

Optimization

• [ ] Compare rates across carriers/services
• [ ] Consider thermal printer investment
• [ ] Set up batch processing if needed
• [ ] Implement address validation

Key Takeaways

Always cheaper than retail: Prepaid labels save significant money

Multiple options exist: Direct, software, platforms - find your fit

Cubic pricing saves money: For small heavy items especially

Batch for efficiency: Time savings at scale

Validate addresses: Prevent costly mistakes

Track everything: Ensure delivery and customer satisfaction

Prepaid shipping labels are one of the easiest ways to reduce shipping costs. Whether you're sending one package or thousands, the savings add up quickly—and the convenience of skipping the post office line is an added bonus.