Operator glossary
LTL vs. small parcel inbound
The two ways freight enters FBA — loose cartons via parcel carriers or palletized less-than-truckload — with different rates, receiving speeds, and failure modes.
Small parcel (SPD) sends individual cartons through UPS-style networks: cheap at low volume, quick check-in, and resilient — one lost box is one lost box. LTL palletizes cartons for freight carriers: unit economics win somewhere around the 10–15 carton mark, but appointments, pallet compliance (height, wrap, labels), and freight-class declarations enter the picture.
The classic Q4 mistake is defaulting to whichever mode was used last time. Price both at each replenishment: the crossover moves with rates and box counts, and receiving-speed differences (SPD often checks in faster) can matter more than the freight delta when a deadline looms.
The numbers
- SPD: per-carton, fast check-in, no appointments; LTL: palletized, cheaper at volume, requires pallet compliance + freight class.
- Crossover typically lands around 10–15 cartons — reprice per shipment rather than defaulting.
Related terms