UPS signs exclusive deal with TikTok Shop for label-free returns
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
LOS ANGELES, Sept 29 : UPS on Tuesday said it had inked an exclusive deal to provide no-box, no-label returns for the fast-growing TikTok Shop network of US sellers as it competes with rivals like FedEx to provide specialized services that generate more profit than typical e-commerce package deliveries.
Parcel delivery firms like UPS and FedEx each have targeted so-called "reverse logistics" services that help retailers reduce the steep cost of returns, which average 27 per cent of a product's purchase price, according to Blue Yonder, a returns-management software company. Amazon.com also offers no-box, no-label returns.
Total returns for the retail industry amounted to roughly $850 billion in 2025 and nearly 20 per cent of online sales are returned, according to the National Retail Federation.
TikTok Shop, launched in the US by the popular social media platform in September 2023, has attracted sellers such as retailers Ulta Beauty and California-style retailer PacSun. Vendors use ads and sponsored influencers to market their products to TikTok users.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Happy Returns users take unwanted items to any of the nearly 10,000 "returns bars" inside Ulta Beauty, Staples or UPS stores, where workers scan, bag, and label items that are then combined in large boxes and sent daily to processing hubs, saving retailers time and money.
The Happy Returns service is available to participating sellers regardless of whether they handle their own fulfillment or outsource it to TikTok Shop, the companies said.
"Our collaboration with Happy Returns builds on our commitment to making the returns experience faster, hassle free, and more trustworthy for our shoppers," said Patrick Nommensen, TikTok Shop's president of strategic initiatives.
For TikTok Shop sellers the partnership means less return fraud, faster inventory turnaround and a returns experience that builds loyalty, said David Sobie, co-founder and CEO of Happy Returns. Happy Returns uses an AI tool to find fraudulent returns by flagging suspicious packages, analyzing their contents, and sending them for final audit by humans who can verify the fraud and withhold the refund.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app