USPS Account Collapse Shakes Cross-Border E-Commerce

Recently, the cross-border e-commerce community was rocked as dozens of businesses rallied in protest after a major USPS account provider suddenly collapsed. The incident affected hundreds of sellers and logistics companies, with losses exceeding $1 billion. At the heart of this crisis lies a long-standing “gray industry chain” in logistics: the so-called “runaway accounts”.

What Happened: USPS Account “Explosion”

The immediate trigger was a surge in “Postage Unpaid” cases for USPS accounts provided by a third-party service. Sellers reported that their packages were randomly routed across states in the U.S. or even intercepted and destroyed. This caused not only disrupted delivery but also damaged store performance metrics, delayed fund settlements, and even threatened account suspensions.

How did this happen?

“Postage Unpaid” essentially means using the service without paying the full postage. In professional terms, it is postal fraud, often executed in two ways:

1.Underpaid Postage Orders: Packages are misdeclared—weights or service types are falsified to reduce shipping costs. For example, a 300g electronics item might be declared as 100g, or Priority Mail may be falsely marked as First-Class Mail.

2.Runaway USPS Accounts: These accounts often register under legitimate business names but operate illegally by:

Delaying payments (“account period run”) until packages are shipped, then disappearing with sellers’ funds.

Fake tracking numbers or reusing old shipping labels.

Technical manipulations to create the illusion of paid postage.

While these loopholes worked for years, tightening regulations have caused the entire system to collapse.

TikTok Shop Compliance Rules: The Bigger Picture

Cross-border platforms are taking strong action against postal fraud. TikTok Shop recently announced that starting October 27, 2025, all POP sellers using USPS must ship using TikTok Shipping’s official labels, while shipments via other carriers require prior arrangement.

The move addresses three pressures:

1.Consumer Experience: High loss rates from “runaway labels” damage user retention.

2.Legal Risk: U.S. federal law prohibits using or selling packages with fake postage. Platforms may be held liable if violations occur.

3.Competitive Pressure: Competitors like Amazon and Temu have implemented official USPS labels, forcing TikTok Shop to standardize logistics compliance.

For sellers, this means reviewing logistics partners and adjusting shipping strategies to comply with platform policies.

The Compliance Wave is Here

The USPS account collapse reflects a broader trend: global logistics compliance is tightening.

* U.S. Postal Service (USPS) has rolled out solutions to combat fake tracking labels and runaway accounts. Accounts violating rules may be terminated after a 30-day grace period, shrinking the market for discounted USPS accounts.

* UPS & FedEx have joined in, penalizing underweight shipments, fake labels, and runaway accounts. Violations can result in surcharges, delivery suspension, or even legal action.

* U.S. Customs and Border Protection (CBP) is actively targeting counterfeit USPS labels and other fraudulent logistics information, linking them to intellectual property violations and smuggling.

For example, in early 2025, Chicago CBP seized 161,000 fake USPS labels from China, involving eight shipments with a face value exceeding $118,000.

This demonstrates that authorities are cracking down not only on goods but also on the logistics chain itself.

How Sellers Can Navigate the Compliance Wave

Cross-border sellers must take proactive steps:

1.Verify Logistics Partners: Confirm USPS account legitimacy and request official authorization documents. Avoid unusually cheap shipping services.

2.Check Existing Logistics Configurations: Ensure shipments comply with TikTok Shop and other platform rules by October 27.

3.Diversify Shipping Channels: Reduce reliance on a single provider. Consider DHL, FedEx, and other international carriers.

4.Monitor Shipping Data: Track packages and detect anomalies promptly.

5.Stay Compliant: Keep updated on USPS policies and platform rules to avoid violations.

While compliance may increase short-term costs, it ensures long-term business sustainability. Sellers attempting shortcuts will face greater consequences in the evolving regulatory landscape.

How Goodship Supports Sellers in the Compliance Era

At Goodship, we help sellers navigate this new era with trusted last-mile delivery services in the U.S.:

* Discounted USPS, UPS, and FedEx accounts for reliable, cost-effective shipping.

* Truck delivery services for domestic U.S. transport.

* Full support for compliance with platform rules, including TikTok Shop and Amazon FBA.

* Real-time shipment tracking and monitoring for peace of mind.

By choosing Goodship, sellers can reduce risk, maintain compliance, and ensure smooth delivery for cross-border customers.

Conclusion:

The USPS account collapse is a wake-up call for cross-border e-commerce. Regulatory tightening, platform compliance, and global logistics oversight are reshaping the industry. For sellers, the path forward is clear: partner with trustworthy logistics providers, embrace compliance, and focus on sustainable growth.