Key facts
- UPS will provide no-box, no-label returns for TikTok Shop US sellers.
- The service allows customers to return unwanted items without needing a box or label.
- Happy Returns, a service used by UPS, employs an AI tool to detect fraudulent returns.
- Returns are processed through nearly 10,000 returns bars located in stores like Ulta Beauty and Staples.
UPS has entered into an exclusive agreement with TikTok Shop to offer a specialized returns service for US sellers on the platform. The deal, announced on Tuesday, will provide customers with a no-box, no-label return option, aiming to simplify the process and reduce costs associated with e-commerce returns.
Parcel delivery companies like UPS and FedEx are increasingly focusing on reverse logistics services to enhance profitability beyond standard package deliveries. Returns management software company Blue Yonder estimates that returns average 27% of a product's purchase price. The National Retail Federation reported that total retail returns amounted to approximately $850 billion in 2025, with nearly 20% of online sales being returned.
TikTok Shop, which launched in the US in September 2023, has attracted retailers such as Ulta Beauty and PacSun. The platform utilizes ads and sponsored influencers to market products. The Happy Returns service, integrated into this partnership, allows users to drop off unwanted items at nearly 10,000 returns bars located within stores like Ulta Beauty, Staples, and UPS locations. These items are then scanned, bagged, labeled, and consolidated for processing.
Patrick Nommensen, TikTok Shop's president of strategic initiatives, stated that the collaboration with Happy Returns aims to make the returns experience faster, hassle-free, and more trustworthy for shoppers. David Sobie, co-founder and CEO of Happy Returns, noted that the partnership will help TikTok Shop sellers reduce return fraud, speed up inventory turnover, and foster customer loyalty. Happy Returns utilizes an AI tool to identify suspicious returns by analyzing package contents before a final audit by human staff.