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Choosing the Right Shipping Method: Small Parcel Delivery vs. Less Than Truckload

Maintaining a profitable business depends on Amazon FBA sellers ensuring a swift and efficient turnover of goods. One key factor in achieving this is selecting the appropriate shipping method.
As an Amazon FBA seller, you have two primary shipping options: Less Than Truckload (LTL) and Small Parcel Delivery (SPD). Each method has its advantages and disadvantages, and the optimal choice depends on several factors, such as the size of your shipment, budget, and logistical needs.
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Small Parcel Delivery

Small Parcel Delivery involves shipping individual boxes or packages. The size restrictions of Amazon fulfillment centers are as follows:
  1. Box Dimensions:
    No more than 25 inches on any side
  2. Weight Limits:

    40 pounds or less for boxes containing jewelry or watches; 50 pounds for boxes containing multiple items; for boxes with single oversized items read guidelines on Amazon Shipping Requirements.

Pros of Small Parcel Delivery:

  1. Flexibility

    Small parcel delivery works best for smaller shipments, allowing the seller to send individual packages as needed.

  2. Simplicity

    Small parcel delivery is a straightforward process, with fewer logistical considerations compared to LTL. Thus, it is easier for small business owners or those just starting out to navigate.

  3. Speed

    Small parcel delivery offers quicker delivery times, which generally expedites stock replenishment.

  4. Cost-Effectiveness for Small Volumes

    For sellers who are shipping only small volumes, small parcel delivery can be more cost-effective.

  5. Simplicity

    Small parcel delivery is a straightforward process, with fewer logistical considerations compared to LTL. Thus, it is easier for small business owners or those just starting out to navigate.

Cons of Small Parcel Delivery:

  1. Higher Costs for Large Shipments

    One drawback to small parcel delivery is that the expenses go up when the volume of shipments increases.

  2. More Packaging Material

    Small individual parcels require more packaging material, which can add to your costs and labor.

  3. Increased Handling

    Because each small parcel is handled separately, there is a greater chance of loss or damage.

Less Than Truckload

The Less Than Truckload shipping option is ideal for Amazon FBA sellers who need to ship multiple boxes or pallets but don’t have enough volume to fill an entire truck.

Pros of Less Than Truckload:

  1. Cost Savings for Bulk Shipments

    For sellers that send large shipments, LTL is generally more economical as you're paying for a portion of a truck rather than for each small parcel.

  2. Efficient for Large Quantities

    For shipping bulk quantities, LTL shipping can help optimize inventory management.

  3. Reduced Handling

    When you use the LTL shipping method, your items are palletized, which reduces handling and potential damage to your items.

Cons of Less Than Truckload:

  1. Minimum Requirements

    There are minimum shipment requirements for LTL shipments, which may not be suitable for sellers with smaller inventories.

  2. Complexity

    LTL shipping is more complex and requires greater planning, coordination, and understanding of freight logistics, which can be challenging for most small businesses.

  3. Longer Delivery Times

    LTL shipments often take longer due to the consolidation process and multiple stops.

Final Thoughts

When deciding between SPD and LTL shipping, consider the size and frequency of your shipments, your budget constraints, and your ability to manage logistics. For small, infrequent shipments, SPD might be the way to go. However, if you’re moving large volumes regularly, LTL could offer significant savings and efficiency.

Remember, the right shipping method for your Amazon FBA business can streamline your operations and contribute to your success. Evaluate your needs carefully, and choose the option that aligns with your business strategy and goals.

If you need assistance deciding on the best shipping option for your business, we can help. Stock and Ship has over 15+ years of experience both as an Amazon FBA seller and 3PL service provider. We can help you find clarity in these matters so you can successfully scale your e-commerce business.

Schedule an appointment today.

Feel free to reach out to us for further details on our services and how we can collaborate to drive sustainable growth for your business.