A shipping method for individual packages or small shipments typically weighing under 150 pounds, handled through carriers like UPS, FedEx, DHL, or postal services. In warehouse operations, parcel shipping represents the final mile delivery solution for e-commerce orders, small business shipments, and individual consumer purchases.

Modern WMS platforms integrate directly with parcel carrier systems to automate rate shopping, label generation, tracking number assignment, and shipment manifesting. This integration streamlines the pick-pack-ship process by automatically selecting the most cost-effective carrier based on destination, weight, dimensions, and delivery requirements.

Effective parcel shipping management is crucial for maintaining competitive shipping costs and meeting customer delivery expectations. For example, a warehouse fulfilling online orders might process 500 parcel shipments daily, with the WMS automatically comparing rates across multiple carriers and selecting UPS Ground for a 2-pound package to California versus USPS Priority for a similar package requiring faster delivery to New York.

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