UPS providing no-box, no-label shipping for TikTok Shop

UPS has entered into an agreement with TikTok Shop to provide exclusive no-box, no-label return services for sellers on the U.S. platform. The delivery giant is vying with FedEx to offer specialized services that yield higher profits than conventional e-commerce deliveries. Both UPS and FedEx have emphasized reverse logistics services to assist retailers in managing return costs, which typically account for about 27% of a product's purchase price, as per Blue Yonder, a returns-management software firm.

Amazon also offers no-box, no-label returns. The retail sector incurred roughly $850 billion in total returns in 2025, with roughly 20% of online sales being returned, according to the National Retail Federation. TikTok Shop debuted in the United States in September 2023 and has drawn in sellers such as Ulta Beauty and PacSun. Sellers promote products to TikTok users through advertisements and sponsored influencers.

Customers can return unwanted items to over 10,000 Happy Returns return locations in Ulta Beauty, Staples, or UPS stores. The items are scanned, bagged, and labeled before being consolidated into large boxes and dispatched daily to processing centers. The Happy Returns service is accessible to participating sellers, regardless of whether they handle their own fulfillment or utilize TikTok Shop’s fulfillment services, as per the companies.

Patrick Nommensen, TikTok Shop’s president of strategic initiatives, stated that the collaboration with Happy Returns aligns with the company's dedication to delivering faster, hassle-free, and more trustworthy returns experiences for shoppers. David Sobie, co-founder and CEO of Happy Returns, added that the partnership offers TikTok Shop sellers reduced return fraud, expedited inventory turnaround, and an enhanced returns experience.

Happy Returns employs artificial intelligence to detect fraudulent returns by identifying suspicious packages and examining their contents prior to human auditors verifying the fraud and denying refunds.