LTL vs. Small Parcel (UPS/FedEx): A Strategic Guide to Selecting Your FBA Inbound Method
Are you overpaying for shipping? Compare the speed of Small Parcel Delivery with the massive cost savings of LTL Freight. Learn how to choose the right inbound strategy to protect your margins as you scale your inventory.
When you have 20 cartons, do you send them as 20 separate Small Parcel Delivery (SPD) shipments via UPS? Or do you stack them on a pallet, wrap them, and schedule an **Less Than Truckload (LTL)** carrier to pick them up? The answer defines your logistics strategy for the entire quarter. Here is the breakdown of the major differences:
Speed vs. Cost
Small Parcel (SPD): Fast, traceable, and perfect for testing new products or moving high-velocity units (5-100 units). But as your volume grows, the "per-carton" fee starts to erase your profit margin.
LTL Freight: Slower (carriers usually only move pallets when the truck is full), but significantly cheaper per unit. If you are sending 100-1,000+ units of heavy products, LTL is the only way to protect your profit.
Processing Time
Small Parcel: Amazon processes SPD very quickly upon delivery. LTL: Amazon gives pallets lower priority. Expect your inventory to sit as "delivered" on the dock for an extra 48-72 hours before it shows as available for sale.
The Strategic Call
At Price Point Prep, our Garland, TX facility is fully optimized for both inbound types. We have a dedicated dock for LTL carriers and the staff to quickly break down pallets, but we also run standard SPD receiving lines. We help our clients find the right LTL/SPD ratio for their business so they aren't paying $5 to ship a $10 item.
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