Label Generation and Rate Shopping Overview

ShipHero is a powerful tool for streamlining your e-commerce and warehouse operations, and two of its most critical features are Label Generation and Rate Shopping. These functions work together to ensure your packages are shipped efficiently and cost-effectively.

This article provides a comprehensive overview of how these two functions operate within the ShipHero system.

Label Generation in ShipHero

Label Generation is the process of creating the official shipping document—the label—that is affixed to a package. This label contains all the necessary information for the carrier to move the shipment from the origin to the final destination, including addresses, tracking barcodes, and service details.

IMPORTANT NOTE: ShipHero does not support carrier label generation for LTL and FTL shipments. For these types of shipments/orders, you will need to print a generic label and then update the tracking on the order manually from the order details page. (Processing Freight Wholesale orders imported via an EDI connection falls outside these parameters as these documents come from the EDI connection directly and are not generated from an API call requested by ShipHero.)

Key Aspects of Label Generation

• Carrier Integration: ShipHero connects directly with major carriers (like USPS, FedEx, UPS, etc.) through their APIs. When you generate a label, ShipHero sends the shipment details to the connected carrier's system.
• Information Exchange: The necessary information for the label, such as the recipient's address, the sender's address, and the package's weight and dimensions, is gathered from the Order Details and the Packing process in ShipHero.
• Real-Time Creation: Once ShipHero sends the required data, the carrier's system calculates the final rate and generates the label, which ShipHero then retrieves as a printable file (usually a PDF). This ensures the label is created with the most current rate and tracking information.
• Printing and Application: The label is then printed, often on a thermal printer, and applied to the package. The order in ShipHero is updated to reflect that the label has been generated and the order is ready for carrier pickup.
• Automation Rules: ShipHero allows you to set up Automation Rules that can automatically trigger label generation based on specific order criteria, significantly speeding up the fulfillment process for high-volume or recurring orders.
• Generic Labels: For non-standard shipping methods, such as customer pickup or local delivery by the warehouse, ShipHero supports the use of Generic Labels. These allow the order to be processed and completed in ShipHero without interfacing with or being charged by a commercial carrier.

Rate Shopping in ShipHero

Rate Shopping is the process where ShipHero compares the shipping rates and estimated delivery times from all your connected carriers for a specific order. The goal is to identify the most cost-effective or fastest method based on your criteria, eliminating the need for manual rate lookups.

Core Functionality

1. Carrier Mapping: This is a crucial setup step. ShipHero allows you to map the generic or customer-facing shipping methods (e.g., "Standard Shipping" from your e-commerce store) to a specific carrier and service level (e.g., "USPS Ground Advantage"). You can also map it to a Cheapest option, which triggers the rate shopping process. For more information visit our article, How to Map Shipping Methods.
2. Request for Rates: When an order is ready for shipment, ShipHero takes the package details (weight, dimensions, destination, origin) and sends out a request for rates to all the integrated carriers that offer services for that package.
3. Comparison and Selection: The carriers return their real-time quotes, and ShipHero compares them. You can configure the system to select:
   • The Cheapest Available Option regardless of transit time.
   • The Cheapest Option within a Delivery Window (e.g., cheapest method that guarantees delivery within 4 days).
   • A Specific Carrier Method that you have mapped based on the method chosen by the customer at checkout.

Advanced Rate Shopping with RateShop+

For more strategic control, ShipHero offers RateShop+, an advanced feature that allows for customized rate comparison:

• Rating Factors: You can apply a cost multiplier (factor) to a carrier's quoted rate before it's compared. For example, if you receive a 5% rebate from Carrier A, you could set a factor of $0.95$ for that carrier, making it appear 5% cheaper in the internal rate shopping calculation and prioritizing it, even if the initial quote is slightly higher. This allows you to account for rebates and other incentives.

  Adjusted Rate = Initial Quoted Rate $\times$ Rating Factor

• Maximum Delivery Time: You can set a maximum delivery time (in days) to ensure the system only considers carriers that can meet your service level agreements (SLAs).
• Defined Methods: You can select a custom group of carrier services to include in the rate shopping calculation, excluding methods you rarely use or have performance issues with.

By utilizing Rate Shopping, particularly RateShop+, businesses can confidently automate the selection of the best carrier service for every order, optimizing both cost and delivery speed without manual intervention.

Native Carrier Connections

ShipHero offers native (direct) integrations with a variety of major shipping carriers, which allows you to use your own negotiated rates and directly generate labels.

The carriers with native integration include:

• US: USPS (via Endicia, USPS Modern, and Shippo), UPS, FedEx (Express, Ground, and Ground Economy/SmartPost)
• International/Other: DHL Express, DHL eCommerce, Canada Post, StarTrack

ShipHero also integrates with third-party platforms like Shippo and Sendcloud, which in turn connect you to a much wider network of carriers (such as Royal Mail, Australia Post, OnTrac, Sendle, DPD, Hermes, etc.).

For the most up-to-date and complete list, you should always check the "Integrated Shipping Carriers" section on the ShipHero integrations page. 

Troubleshooting & Key Notes