UPS has signed an exclusive agreement with TikTok Shop to provide no-box, no-label returns for participating sellers in the United States, as the package delivery company expands its services for the fast-growing e-commerce platform.
Under the deal announced Sept. 29, shoppers will be able to return eligible TikTok Shop purchases through Happy Returns, a UPS subsidiary specializing in reverse logistics. Customers can take unwanted items to one of nearly 10,000 Happy Returns locations, where workers scan and consolidate the merchandise for shipment to processing facilities.
The partnership is aimed at making returns easier for shoppers while helping TikTok Shop sellers reduce the costs and logistical challenges associated with returned merchandise.
TikTok Shop launched in the United States in September 2023 and has expanded its network of merchants, including retailers such as Ulta Beauty and PacSun. The platform relies heavily on advertising and influencer-driven promotions to connect sellers with consumers.
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Patrick Nommensen, TikTok Shop’s president of strategic initiatives, said the collaboration with Happy Returns was intended to make the returns process faster and easier while strengthening trust among shoppers.
For sellers, the service is available whether they manage their own fulfillment or use TikTok Shop’s fulfillment services, according to the companies.
Returns have become a major e-commerce challenge. The agreement comes as retailers and delivery companies increasingly focus on so-called reverse logistics, the process of moving products back from consumers to retailers.
Returns are a significant cost for online retailers. According to data cited by Reuters from returns-management software company Blue Yonder, returns average about 27% of a product’s purchase price. The National Retail Federation estimated that total retail returns reached roughly $850 billion in 2025, while nearly 20% of online purchases were returned.
UPS and rival FedEx have been expanding their reverse-logistics offerings as they compete for specialized e-commerce business. Amazon also provides no-box, no-label return options for some purchases.
Happy Returns’ system allows consumers to bring eligible items to participating locations without preparing a traditional shipping box or printing a return label. The company says its network includes return locations inside UPS stores, Staples and Ulta Beauty stores.
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The service also uses artificial intelligence to help identify potentially fraudulent returns. Suspicious packages can be flagged for further inspection, with human reviewers conducting a final verification before a refund is withheld, according to Reuters.
For TikTok Shop, the arrangement gives sellers another way to handle returns while potentially speeding up inventory turnover and reducing fraud.
The partnership also comes as TikTok Shop continues to build its U.S. retail operation and compete for consumer spending in a market where convenience, shipping and returns have become important parts of the online shopping experience.