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Category: News and Events

What is a shipping label and what you should know | SME Shipping

What is a shipping label? How to create one correctly to minimize shipping errors.

In the era of rapidly growing online commerce, ensuring accurate and timely delivery of goods to customers is crucial. One essential element for a smooth process is the "Shipping Label," a document attached to packages to help minimize errors during transit. Errors in the shipping label can lead to lost packages, delays, or incorrect arrival. Therefore, businesses and shippers should pay close attention to the correct design and installation of Shipping Labels. This article from SME Shipping will guide you through understanding Shipping Labels and how to use them correctly to prevent shipping errors.

What is a shipping label?

A shipping label is a label that contains important information about a package, such as the sender's name and address, the recipient's name and address, the tracking number, a barcode or QR code used to check the shipping status, as well as information about the shipping company, size, weight, and type of goods. This label helps shipping companies manage packages correctly and efficiently.

Illustration: https://craftmypdf.com/tools/free-online-shipping-label-maker/ 

The Importance of Shipping Labels

One element that helps ensure packages reach their recipients correctly is the shipping label, a sticker or document attached to a package to indicate necessary shipping details. Clear and accurate shipping labels not only help shipping companies operate efficiently but also reduce delivery errors, prevent lost packages, and offer other benefits that businesses should consider when using them correctly.

  1. Prevent delivery errors because accurate information ensures packages are delivered to their correct destination.
  2. Improving transportation efficiency, it helps shipping companies sort and prioritize deliveries more easily.
  3. Track your package conveniently using the tracking number and barcode, allowing both sender and recipient to check the status of their shipment at any time.
  4. Reduce costs from incorrect or lost shipments. Clear and accurate shipping labels help reduce the chances of packages being delivered to the wrong address or lost. 

How to reduce shipping errors with shipping labels.

  1. Carefully check the recipient's address. The recipient's name and address must be correct and complete, including the postal code and phone number. Ensure there are no spelling errors or unclear addresses.
  2. Choosing the right shipping service requires considering the size, weight, and type of the product. Selecting a box or package size that fits the product properly will help minimize damage and shipping costs.
  3. Specify the tracking number so that it can be verified as included on the shipping label and used to track the shipment status.
  4. Ensure the clarity and completeness of the information by using legible fonts and avoiding small letters or fonts that are difficult to read.
  5. Verify the accuracy of the payment information (if applicable).
  6. Attach the labels in appropriate locations. They should be placed on the top or side of the package so that delivery personnel can clearly see the information. If using multiple labels, ensure there are enough to cover all items and that there is no duplicate information.
  7. Check the shipping terms and conditions of the transportation service to see if there are any restrictions or prohibited items, such as liquids or hazardous materials.

Paying attention to shipping labels and carefully checking details before shipping packages will help reduce transportation errors, increase customer satisfaction, and enable businesses to operate efficiently.

What to look for when choosing a packing service | SME Shipping

Services to look for when seeking product packing assistance.

In the shipping business, one of the top things entrepreneurs should consider is packaging goods before delivery. Damage to packaged goods during transit can negatively impact the business, affecting credibility and increasing shipping costs when customers return the damaged items. This article from SME Shipping will introduce you to the services you should look for when needing product packaging assistance.

What is packaging service?

Packaging services help to pack and prepare goods for shipment or sale. The focus is on ensuring goods are packed properly, safely, and to a high standard, minimizing damage during transportation and improving business efficiency. This service plays a crucial role in improving efficiency and reducing errors in shipping, as businesses can choose appropriate packaging services to ensure safe delivery, reduce damage during transit, and create a positive customer experience with a high-standard service.

Components of a product packaging service.

  • Choosing appropriate packaging, such as cardboard boxes, vacuum-sealed packs, or cushioning material.
  • Sealing or wrapping goods to protect them from dust, moisture, or impact.
  • Labeling or barcode application for easier verification and delivery.
  • Other supplementary services include product bundling, logo printing, or custom packaging.

The importance of packaging services in logistics systems.

Packaging services play a crucial role in logistics systems because it's a process that helps ensure efficient product transportation, reduces damage, and increases customer satisfaction. Good packaging not only protects against damage during transport but also streamlines the storage, sorting, and delivery processes.

  1. Protect goods from damage and reduce the risk of impact, moisture, or other factors that may cause product breakage during transportation.
  2. Improve transportation efficiency because good packaging allows products to be easily stacked, saving space in warehouses and transport vehicles.
  3. It helps to make warehouse management more systematic because properly packaged goods can be easily stored and sorted, reducing the time spent searching and moving them.
  4. Proper packaging enhances business credibility because it ensures products arrive in perfect condition, creating customer satisfaction and increasing the likelihood of repeat purchases due to this attention to detail.
  5. Supporting the expansion of e-commerce, which is currently experiencing rapid growth in online sales, packaging services enable businesses to manage large volumes of orders efficiently.

Choose reliable packaging services. Choose SME Shipping.

If you are looking for a quality packaging service provider, SME Shipping is a suitable option for businesses of all sizes. We offer professional packaging services that reduce the hassle for entrepreneurs and ensure a smooth shipping process with careful attention to every item. Other advantages of using our services include:

  • We use high-quality materials to pack goods according to international standards to minimize damage during transportation.
  • We can handle fragile items, lightweight items, and large items.
  • No need to waste time preparing equipment yourself; SME Shipping handles everything, helping to reduce costs and working time.
  • We support international shipping in accordance with customs standards, and provide both domestic and international transportation services.

How to Calculate Import Taxes for Businesses | SME Shipping

How to Calculate Import Taxes: What Businesses Should Know

Importing goods involves various taxes and fees, which businesses should understand to manage costs efficiently. Knowing about import taxes includes not only import duties but also calculating Value Added Tax (VAT) and other related taxes on their specific products. Accurate tax calculation allows businesses to plan their finances precisely, reduce the risk of unexpected expenses, and ensure compliance with customs laws. Today, SME Shipping will explain how to calculate import taxes with examples for easier understanding.

The main components of import tax calculation that businesses should know are as follows:

1. Components of import tax.

Import duties consist of several types of taxes, including:

  • Import duty – calculated according to the customs tariff schedule.
  • Value Added Tax (VAT) – Calculated from the value of the goods including import duties.
  • Excise tax [if applicable] – applies only to luxury goods or certain prohibited items.
  • Local Tax (if applicable) – Applies to certain types of goods.

When importing any type of goods, importers must understand how taxes are calculated to ensure smooth business operations. First, they must understand the cost-tax components that are used to determine the selling price. The Customs Department calculates import taxes using the CIF (Cost Insurance and Freight) price, which is the total value of the goods at the destination port. This price serves as the basis for calculating import taxes and consists of three main parts:

  1. Cost (C) – Price of goods at the origin (FOB – Free on Board)
  2. Insurance (I) – Cost of insurance for goods during transportation. 
  3. Freight (F) – The cost of transporting goods from origin to destination.

The Customs Department will use the CIF price as the basis for calculating import duties, such as import duties, Value Added Tax (VAT), and other taxes, in order to ensure fairness and prevent tax evasion by undervalidating goods.

2. Formula for calculating import tax.

Accurate tax calculation helps businesses control costs, reduce the risk of penalties, and comply with customs laws. The formulas for calculating import taxes that businesses should know are as follows:

  • Calculate CIF price: Product cost + Insurance cost + International shipping cost = CIF
  • Calculate import duties: CIF × Import Duty Rate (%) = Import Duty (Import tariff rates may be 5%, 10%, 20%, or 30% depending on the type of goods.)
  • Calculate Value Added Tax (VAT 7%): (CIF + Import Duty) × 7% = Value Added Tax
  • Includes import taxes payable: Import duties + Value Added Tax (VAT) = Total import tax payable.

Businesses must accurately calculate import duties every time they import goods to enable effective cost planning. The Customs Department uses the CIF (Cost, Insurance, and Freight) price as the basis for calculating import duties, which include import duties and Value Added Tax (VAT). Understanding the correct calculation formula will help reduce errors and ensure smooth business operations.

Additional things to know

✅ Check the HS Code (Customs Tariff) of the product to find out the correct tax rate.
✅ Check for FTAs (Free Trade Agreements); you may receive preferential tariff reductions.
✅ Always use the Import Entry Form for all import transactions.