UPS signs exclusive deal with TikTok Shop for label-free returns

UPS announced on Tuesday an exclusive partnership with TikTok Shop, the fast-growing US e-commerce platform, to offer label-free, no-box returns to its sellers. This move comes as the company seeks to differentiate itself from competitors like FedEx, by providing specialized reverse logistics services that generate higher profits than standard e-commerce deliveries.

According to Blue Yonder, a returns-management software company, returns for the retail industry totaled around $850 billion in 2025, with nearly 20% of online sales being returned. In 2023, TikTok Shop launched its US platform, attracting sellers such as Ulta Beauty and PacSun, who utilize ads and sponsored influencers to market their products to TikTok users.

The Happy Returns service, which enables customers to return unwanted items at any of the nearly 10,000 returns bars located in Ulta Beauty, Staples, or UPS stores, will be utilized in this new collaboration. The company stated that this partnership aligns with their commitment to providing faster, hassle-free, and more trustworthy returns experiences for their shoppers.

For TikTok Shop sellers, the partnership promises reduced return fraud, quicker inventory turnover, and a return process that fosters customer loyalty. Happy Returns uses AI technology to identify fraudulent returns by analyzing suspicious packages and their contents, before sending them for final verification by human auditors.