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Overview: Label Generation and Rate Shopping

ShipHero's Label Generation and Rate Shopping features work together to ship packages efficiently and cost-effectively. For accounts with more than one warehouse, the carrier account must be connected to each warehouse where you want to use that carrier for label generation and rate shopping.

Label Generation in ShipHero

Label Generation is the process of creating the shipping label affixed to a package. It contains all the information a carrier needs to move a shipment, including addresses, tracking barcodes, and service details.

Important Note

ShipHero does not support carrier label generation for LTL and FTL shipments. For these shipments, print a generic label and update the tracking manually from the order details page. (Freight Wholesale orders imported via EDI are outside these parameters, as those documents come directly from the EDI connection.)

Key Aspects of Label Generation

  • Carrier Integration: ShipHero has native integrations with major carriers (USPS, FedEx, UPS, etc.), third-party connections (Sendcloud and Shippo), and supports non-native carriers via the API using a generate label webhook. When you generate a label, ShipHero sends the shipment details to the carrier's system.
  • Information Exchange: Label data — including recipient/sender address and package weight and dimensions — is gathered from the Order Details and Packing process in ShipHero.
  • Real-Time Creation: The carrier's system calculates the rate and generates the label, which ShipHero retrieves as a printable PDF using the most current rate and tracking information.
  • Printing and Application: The label is printed (typically on a thermal printer) and applied to the package. The order is updated in ShipHero and marked ready for carrier pickup.
  • Automation Rules: Set up Automation Rules to automatically trigger label generation based on order criteria, speeding up fulfillment for high-volume orders.
  • Generic Labels: For non-standard methods like customer pickup or local delivery, Generic Labels allow orders to be processed without interfacing with a commercial carrier.

Rate Shopping in ShipHero

Rate Shopping compares shipping rates and estimated delivery times across all connected carriers for a given order, automatically identifying the most cost-effective or fastest option based on your criteria.

Important

Because carrier accounts are set up at the profile level, ShipHero cannot rate shop two accounts from the same carrier on a single order simultaneously. To quote an order using different accounts from the same carrier, change the profile on the order details page and requote.

Core Functionality

  1. Carrier Mapping: Map your store's shipping methods (e.g., "Standard Shipping") to a specific carrier service (e.g., "USPS Ground Advantage"), or to a Cheapest option that triggers rate shopping. For more information, visit How to Map Shipping Methods.
  2. Request for Rates: ShipHero sends package details (weight, dimensions, origin, destination) to all integrated carriers for real-time quotes.
  3. Comparison and Selection: ShipHero compares returned quotes and selects based on your configuration:
    • The Cheapest Available Option regardless of transit time.
    • The Cheapest Option within a Delivery Window (e.g., cheapest method that delivers within 4 days).
    • A Specific Carrier Method mapped to the customer's checkout selection.

Advanced Rate Shopping with RateShop+

RateShop+ offers additional control over rate comparison:

  • Rating Factors: Apply a cost multiplier (factor) to a carrier's quoted rate before comparison. For example, if you receive a 5% rebate from Carrier A, set a factor of 0.95 to make it appear 5% cheaper in the rate calculation — prioritizing it even if the initial quote is slightly higher.

    Adjusted Rate = Initial Quoted Rate × Rating Factor

  • Maximum Delivery Time: Set a maximum delivery time (in days) to ensure only carriers that meet your SLAs are considered.
  • Defined Methods: Select a custom group of carrier services to include in rate shopping, excluding methods you rarely use or that have performance issues.

With RateShop+, businesses can automate carrier selection for every order, optimizing both cost and delivery speed.

Native Carrier Connections

ShipHero offers native integrations with major carriers, letting you use your negotiated rates and generate labels directly.

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 Shippo and Sendcloud, connecting you to a wider carrier network (including Royal Mail, Australia Post, OnTrac, Sendle, DPD, Hermes, and more).

For the most current list, see the ShipHero integrations page.

Troubleshooting & Key Notes

Issue Resolution / Note
"Error Generating Label" Check the Data. The most common cause is missing or incorrect weight, an invalid recipient address, or a carrier connection issue (expired account, API error).
High Shipping Cost Review the dimensions and weight in ShipHero. Confirm you're using the correct box size and service level.
Carrier Errors Select the view details link to see the specific error returned by the carrier. Errors are often in code format, with reference fields indicating where corrections are needed on the order.
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