UPS Turns to RFID to Close Gaps in Package Pickup Tracking

A package has been picked up, but the seller still sees no pickup confirmation. The tracking status may not have updated yet.

To reduce these gaps, UPS was already testing a setup in 2024 that let customers print their own radio frequency identification (RFID) labels. UPS installed readers at customer warehouse loading docks to record packages automatically as they were loaded for pickup.

UPS customers can now print RFID labels at 315 shipping locations. About 3 million packages use the service each day, and UPS expects that daily volume to reach 6 million in 2027. (supplychaindive.com)

UPS RFID Labeling and Pickup Tracking Process

After a warehouse completes packing, labeling, and outbound processing, it still needs the carrier’s pickup record to confirm that the shipment is in transit. When pickup is recorded through manual barcode scans, there can be a delay between the physical handoff and the tracking update the seller sees.

Businesses using the RFID service print and apply labels with RFID printers and compatible label stock as they pack orders for shipment. At pickup, readers in UPS vehicles use radio signals to identify the labels and record which packages have been handed to UPS. The system also alerts staff when a package is loaded onto the wrong truck so they can correct the misload promptly.

A pickup record is therefore generated automatically as the shipment leaves the warehouse. RFID tracking differs from real-time GPS location tracking, however, and businesses still need to investigate and address any subsequent delays or lost packages individually.

Benefits of RFID Automation

Automatic identification can reduce the workload of scanning packages individually and lower the risk of human error. Correcting misloads also reduces the risk of errors carrying through to later transportation stages.

RFID identification is particularly useful for U.S. fulfillment warehouses and e-commerce sellers. More timely pickup records can reduce back-and-forth communication after packages are handed over to the carrier.

For example, if tracking has not updated for a batch of packages already handed to UPS, customers ask the seller for an update. The seller checks with the fulfillment warehouse, which then contacts UPS to confirm pickup, requiring repeated checks among multiple parties. When RFID automatically records package status at pickup, sellers can give customers a clearer update on shipping progress.

Timely tracking information also helps retail warehouses plan unloading, receiving inspections, and putaway in advance, supporting a smoother workflow once goods arrive.

RFID Requirements and Costs for U.S. Warehouses

UPS lists several equipment requirements on its website. Shippers need RFID printers and compatible labels, and some also need readers at locations such as loading docks. The specific setup depends on daily shipping volume, the facility, and pickup requirements.

Because UPS currently provides only a waitlist registration option, businesses must first confirm whether their location and operations are eligible.

Businesses must also plan their workflows and system integration. Internally, they need to assign responsibility for label printing, determine when labels will be applied, and plan any changes to outbound procedures. They also need to work with their carrier and software provider to confirm that pickup data can be matched accurately to orders and sent back to their existing warehouse management system (WMS) or order management system.

However, UPS has not yet published pricing for adopting the RFID service.

Package Identification and Tracking Developments

To improve logistics efficiency, UPS says it has installed RFID readers in all its U.S. package delivery vehicles and delivery facilities. The company also conducted an early pilot at technology distributor Ingram Micro’s Texas warehouse, which handles more than 28% of Ingram Micro’s UPS shipping volume. Every package handed to UPS at that warehouse receives an RFID label.

Positive results from real-time pickup confirmation with RFID labels have driven rapid expansion of the service. UPS expects to deliver more than 4 billion RFID-enabled packages by the end of 2026, with nearly 70% of its packages moving through automated processes in the fourth quarter of 2026.

Among its competitors, FedEx also began testing RFID sensors on packages from selected customers in April 2026, although it has not disclosed the specific scale of its rollout.

To give customers more timely and consistent access to tracking data, the U.S. Postal Service (USPS) is upgrading its Product Tracking and Reporting (PTR) system to PTR2. The system consolidates shipper data and records from scanners and processing equipment. The upgrade aims to reduce data transmission delays and system downtime, making it easier for customers to receive tracking records through APIs and webhooks.