As businesses grow and change, so do their shipping needs. What started as a few parcels a day can quickly turn into pallets, recurring lanes, and the need for a more deliberate strategy. Along with that need can come questions, including:
· When should I move from small parcel to less-than-truckload (LTL)?
· When does LTL stop making sense, and full truckload (FTL) becomes the better option?
· How should my mix change as I scale or go into peak season?
“There’s no one-size-fits-all answer,” says Max Sadler, Head of Inbound Sales at Amazon Freight and a former Amazon seller. “The right mix of parcel, LTL, and truckload is really a reflection of your volume, your shipment profile, and what matters the most at the time, whether that’s cost, speed, or flexibility. Because those factors are always changing, the most effective shippers actively manage their mix as operations evolve rather than taking a set-it-and-forget-it approach.”
In this post, we’ll break down the three modes, explore how to determine which will work best, and explain how the right mix changes over time.
The three modes, simplified
Parcel, LTL, and TL each offer distinct advantages, and making the right decision starts with understanding how each mode works and where it excels.
Differences between parcel, less-than-truckload, and truckload
Mode |
Best for |
Main strengths |
Trade-offs |
Parcel |
Works well for single boxes, small orders, and direct-to-consumer shipments. |
It is fast, convenient, and easy to book and track. |
Parcel becomes expensive at higher weights or volumes. |
Less-than-truckload (LTL) |
It is ideal for palletized freight when there isn’t enough to fill a full trailer. |
It is more cost-effective than parcel once shipments reach pallet size. It offers flexibility for shifting volumes. |
Freight goes through terminals for consolidation, which results in more handling and longer transit times. |
Truckload (FTL) |
FTL is best suited for high, consistent volumes and full or nearly full trailer loads. |
It works well for direct moves and offers faster delivery times. The shipper has full control of the trailer. |
It may only be cost effective if the shipper can fill most of the trailer. It is less flexible for small or irregular shipments. |
A natural progression
As capacity demands increase, shippers naturally move up a ladder, using parcel for small orders, LTL for shipments that reach pallet size but don’t fill a trailer, and FTL as pallet counts climb.
“We see the smartest shippers treat their mode mix like a portfolio,” says Sadler. “Parcel gives flexibility, LTL gives scalability, and truckload gives efficiency. The art is knowing when to lean more heavily on each.”
That decision often comes down to recognizing when one option stops working as efficiently as it once did. Parcel, for instance, begins to lose efficiency when shipments regularly top 150 pounds or when multiple boxes are headed to the same destination.
Once that happens, LTL can become more economical. With LTL, shippers pay only for the space they use, making it a cost-effective option for palletized freight or for fluctuating weekly volumes. LTL also provides flexibility, enabling businesses to move shipments of varying sizes without waiting to build a full load.
As pallet counts increase, the equation shifts again. Once freight fills half a trailer or more, FTL can make more sense. It may be more cost-effective, offer more predictable transit times, and have fewer touchpoints. It can also offer better access to capacity, especially during peak season, when LTL capacity tightens. In some cases, even a partially filled truckload can be a better option than LTL depending on the shipper’s needs.
A customizable approach
Shippers can mix and match the best solution based on the lane, seasonal demand, or network changes.
“Mode selection isn’t a set-it-and-forget-it decision. It benefits from regular reviews, and shippers can adjust their mix as their needs change,” says Sadler “Shifting your mix based on volumes helps control costs and improves speed and service.”
If your network is evolving and you’re reassessing your mode mix, Amazon Freight and Amazon Shipping can help. Whether you’re preparing for peak season or experiencing sustained growth, we can work with you to assess your freight patterns and identify where parcel, LTL, or truckload makes the most sense. For LTL or truckload, create an account to start getting quotes. For small parcel, get started here.
