UPS has signed an exclusive agreement to provide no-box, no-label returns for U.S. sellers on TikTok Shop, expanding its competition with FedEx in reverse logistics (handling product returns and recovery). The service lets customers take unwanted items to nearly 10,000 returns bars inside Ulta Beauty, Staples or UPS stores, where workers scan and consolidate packages for processing. TikTok Shop, launched in the U.S. in September 2023, has attracted sellers including Ulta Beauty and PacSun. The partnership is available to sellers that manage fulfillment themselves or outsource it to TikTok Shop. Returns average 27% of a product's purchase price, while retail returns totaled roughly $850 billion in 2025 and nearly 20% of online sales were returned, according to the cited industry sources. Happy Returns also uses an AI tool to identify potentially fraudulent returns for human review.