SP - Small Parcel

 In Amazon’s logistics ecosystem, SP (Small Parcel) defines a shipment type used when vendors or sellers send products in individual boxes - rather than full pallets or truckloads.
This classification is critical for Vendor Central, Seller Central, and FBA (Fulfilment by Amazon) operations because it determines how inbound shipments are prepared, labelled, and received at Amazon fulfilment centres.

Key Characteristics of SP Shipments:

• Carton-level shipments: Each box contains individual sellable units.
• Carrier-based delivery: Shipped via Amazon-partnered small-parcel carriers.
• Sortable handling: Usually fits within Amazon’s standard size and weight limits (e.g., <50 lb / 22.7 kg per box).
• Tracking: Each box has a unique carrier tracking ID.

SP vs. LTL vs. FTL:

Shipment TypeDescriptionTypical UseSP (Small Parcel) | Individual boxes shipped via parcel carriers | Low-volume, lightweight, cartonised inventory
LTL (Less Than Truckload) | Palletised freight not filling a full truck | Medium-volume vendor shipments
FTL (Full Truckload) | Full truck dedicated to one shipment | High-volume vendor or distribution transfers

When SP is Used:

• For small or lightweight items shipped directly to fulfilment centres.
• When order quantities are low or inventory is distributed across multiple FCs.
• For direct-to-customer deliveries under Prime, FBA, or SnL (Small and Light).

Inbound (Vendor/Seller) Workflow:

1. Vendor or seller creates an SP shipment plan in Vendor or Seller Central.
2. Each box is labelled with Amazon shipment ID and carrier tracking code.
3. Boxes are collected by Amazon’s partnered carrier or dropped off at a parcel hub.
4. Upon arrival, each box is scanned into inventory at the designated FC.

Benefits for Amazon:

• Operational flexibility: Handles small, distributed vendor shipments efficiently.
• Automation: Supports inbound flow through Sortable FCs.
• Reduced congestion: Avoids dock scheduling complexity of LTL/FTL.

Benefits for Vendors and Sellers:

• Ease of setup: No need for palletisation or freight management.
• Cost-effective: Ideal for low-volume replenishment or smaller SKUs.
• Speed: Faster check-in at fulfilment centres.
• Accessibility: Enables smaller vendors to participate without bulk freight.

Challenges:

• Higher per-unit shipping cost: Less efficient than consolidated freight.
• Volume limits: Not suitable for high-volume or oversized items.
• Carrier restrictions: Must comply with Amazon’s partnered carrier rules.
• Tracking complexity: Each carton tracked separately.

Example:
A vendor sends 30 cartons of phone chargers to Amazon’s FC via UPS Small Parcel.
Each carton weighs 8 lb, carries a unique tracking number, and is received within two days at the designated Sortable FC.

Why It Matters:
The SP (Small Parcel) designation determines how inbound inventory is shipped, handled, and received within Amazon’s logistics network.
It helps vendors optimise cost, timing, and routing, especially for small or frequent replenishment shipments.

In short:
SP (Small Parcel) refers to carton-based shipments sent via parcel carriers - ideal for small, lightweight inventory that fits Amazon’s Sortable network and doesn’t require palletisation or truckload delivery.