Dive Brief:
- TikTok Shop will require all U.S. Postal Service shipping labels to be purchased and printed through TikTok Shipping starting in January, the e-commerce platform said in a Nov. 14 communication to sellers.
- TikTok Shop, which did not provide a reason for the change, said shippers can still work directly with carriers outside of the Postal Service. The platform added that sellers will need to be ready for the change by Dec. 31 to avoid fulfillment disruptions.
- The move means USPS labels from external sources like Shopify, ShipStation and Postal Service accounts will be rejected, which tightens TikTok Shop's control over the shipping process for orders made on its platform, according to Tactical Logistics Solutions.
Dive Insight:
TikTok Shipping provides built-in shipping label creation for sellers and offers several ground and express shipping options from FedEx, UPS and the Postal Service. As the USPS change looms, impacted shippers should either lean into TikTok Shipping for Postal Service labels or work directly with other carriers, Tactical Logistics Solutions said.
"Most established brands will end up with a hybrid: USPS via TikTok where it pencils out, and more UPS/FedEx volume where control and consistency matter more," per Tactical Logistics Solutions.
Shippers are already weighing their options before TikTok Shop's change takes effect. Axion, a third-party logistics provider focused on e-commerce, is opting not to use TikTok Shop labels because they would add complexity in label creation and cut into its margins, COO Logan Black said on LinkedIn.
"We can disable USPS and ship TikTok orders with UPS, FedEx, Amazon Shipping, etc., with no change in speed," Black said. "The issue is cost. For many TTS sellers, especially those shipping small and light products, USPS is the only affordable option. Switching carriers raises shipping costs, which either sellers or buyers will have to absorb."
TikTok did not respond to a request for comment on the matter, and the Postal Service declined to comment.
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