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

Tech & Internet UPS signs exclusive deal with TikTok Shop for label-free returns Reuters A United Parcel Service (UPS) vehicle reverses into a facility in Queens, New York City, U.S., May 9, 2022. Synopsis 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 specialised services that generate more profit than Follow us Reuters Sep 29, 2026, 04:36:38 PM IST SHARE THIS NEWS Close Font Size Abc Small Abc Normal Abc Large Close Listen to this article in summarized format Listen 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% 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% 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. 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. Popular in Tech More ≫ 1. Insurance commission revamp to push insurtech firms to the brink 2. MDR gives banks more fuel for UPI play 3. GCCs may trim 30,000 routine roles to fire up 1.5 lakh tech role explosion 4. Linde deepens its India semiconductor footprint, locks in Sanand land parcel 5. ET Startup Awards 2026: Pallavi Shrivastava’s Progcap is powering up a million kiranas 6. KAS Group eyeing chip gear refurb play with Singapore company 7. ETtech Explainer: Decoding EU’s move to dismantle addictive technology for children "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. Continue Reading Read more news on UPS TikTok Shop no-box no-label returns reverse logistics Happy Returns e-commerce returns return fraud prevention (Catch all the Technology News News , and Latest News Updates on The Economic Times .) More NEXT READ EU should use Google fines to cut member state contributions to budget, France says Oura delays US IPO, adding to fall market jitters ChatGPT is coming for a bite of Google-Meta’s ad pie Meet Chirantan Desai, Meta's pick to lead its new enterprise AI platform Zomato’s Deepinder Goyal introduces the team behind Temple’s BrainFlow Flipkart expands warehousing space, adds 900 delivery hubs ahead of Big Billion Days sale Groww begins phased rollout of US stock investing through GIFT City Google appeals against EU order to share data, open Android to AI rivals Indian IT sheds H-1B habit, FY27 filings plunge 92%