UPS (NYSE:UPS) has entered into a partnership with TikTok Shop to provide an exclusive no-box, no-label returns service for participating sellers on the social commerce platform in the United States.
The service will be provided through Happy Returns, allowing TikTok Shop customers to return eligible products without packaging or printed shipping labels.
The partnership expands UPS’s reverse logistics operations as delivery companies including FedEx (NYSE:FDX) offer services intended to help retailers manage product returns.
Happy Returns Offers Nearly 10,000 Return Locations
Customers using Happy Returns can take eligible unwanted products to nearly 10,000 return locations inside Ulta Beauty, Staples and UPS stores.
At the return location, workers scan, bag and label the individual products. The items are then consolidated into larger boxes and transported daily to processing hubs.
The service is available to participating TikTok Shop sellers regardless of whether they handle fulfilment themselves or use TikTok Shop’s fulfilment services, according to the companies.
“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.
Retailers Focus on Cost of Product Returns
UPS and FedEx have increased their focus on reverse logistics as retailers seek to manage the costs associated with returned products.
Returns-management software company Blue Yonder estimates that returns cost retailers an average of 27% of a product’s purchase price.
According to the National Retail Federation, the US retail industry recorded approximately $850 billion of total merchandise returns in 2025, with nearly 20% of online sales returned.
Amazon.com also provides no-box, no-label return options.
Happy Returns Uses AI to Identify Potential Fraud
David Sobie, co-founder and chief executive of Happy Returns, said the TikTok Shop partnership is intended to provide sellers with lower return fraud, faster inventory turnaround and changes to the customer returns process.
Happy Returns uses artificial intelligence to flag packages it identifies as potentially suspicious and analyse their contents. Human auditors then review flagged returns before any determination is made to withhold a refund.
TikTok Shop launched in the US in September 2023 and has attracted sellers including Ulta Beauty and PacSun. Sellers on the platform can market products through advertisements and sponsored influencers.
The supplied information does not include financial terms for the agreement between UPS and TikTok Shop.
United Parcel Service stock price
