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Glossary Term

SPD vs. LTL Shipment Type

Understanding the differences between Small Parcel Delivery and Less Than Truckload shipping for Amazon FBA.

Choosing Your Shipping Method

When sending inventory to Amazon, you have two main choices: SPD or LTL. SPD (Small Parcel Delivery) is for individual boxes sent via carriers like UPS or FedEx. LTL (Less Than Truckload) is for larger shipments where you stack multiple boxes onto pallets and ship them via a trucking company.

Boxing and Labeling Rules

The labeling is different for both. For SPD, you need a unique shipping label for every single box. For LTL, you need labels for the boxes AND four large labels for the outside of the pallet. Amazon has very strict rules about how these are placed so they can be unloaded quickly.

  • SPD: Faster, easier for small shipments, uses UPS/FedEx.
  • LTL: Cheaper for large volumes, requires a loading dock.
  • LTL requires a Bill of Lading (BOL) document.

When to Switch to LTL?

If you are shipping more than 15-20 boxes at once, it’s usually cheaper to palletize them and use LTL. While it takes a bit longer to arrive at the warehouse, the savings on shipping costs can be huge, especially for heavy items.

Receiving Times

SPD shipments are usually checked into Amazon's system faster because they arrive in smaller bites. LTL pallets can sit in a queue at the warehouse for a few days before they are unloaded and scanned. Plan your inventory levels accordingly!