TikTok Shop is tightening its control over shipping by requiring U.S. sellers to purchase and print all USPS shipping labels directly through TikTok Shipping starting in January. The policy was shared with sellers in a communication dated November 14.
The USPS states that, beginning December 31, 2020, all shipments must have a USPS-generated label which must be obtained through the USPS website (usps.com) and cannot be produced from any third party platform (such as Shopify or ShipStation) or via any USPS stand-alone account. If sellers do not comply with the new policy, then their shipment(s) will be rejected and they will not be able to ship the order(s). Sellers should develop a shipping plan (order fulfillment plan) before the December 31, 2020 deadline in order to avoid shipping issues.
TikTok Shop did not explain the reason behind the update but confirmed that sellers can still ship orders using non-USPS carriers outside the platform, including UPS and FedEx. The move significantly increases TikTok Shop’s oversight of the fulfillment process for orders placed on its marketplace, according to logistics firm Tactical Logistics Solutions.
TikTok Shipping currently offers built-in label creation with multiple ground and express options from USPS, UPS, and FedEx. As the USPS deadline approaches, affected sellers are being advised to either adopt TikTok Shipping for Postal Service labels or shift more volume to alternative carriers.
Logistics experts expect many sellers to adopt a mixed strategy. Tactical Logistics Solutions noted that sellers may continue using USPS through TikTok Shipping where costs make sense, while relying more heavily on UPS or FedEx for shipments where control and reliability are priorities.
Some logistics providers are already adjusting their strategies. Axion, a third-party logistics firm focused on ecommerce, said it plans to avoid TikTok Shipping labels altogether. “We see this as not only an increase of operational complexity but also as a reduction of our margins,” wrote Logan Black on LinkedIn. “To date, we have been able to ship TikTok orders using UPS, FedEx and Amazon shipping services without affecting the speed of delivery; however, as these companies increase their shipping prices, this is likely becoming an issue for sellers who are shipping smaller/lighter items to their customers (where USPS is still the most cost effective shipper).”
At this time, we have not received any responses from either TikTok or the U.S. Postal Service regarding this matter.