UPS Pivots to Returns Handling as a More Profitable Business Segment
UPS is reducing Amazon deliveries by over 50% in 2026 and shifting focus to its Happy Returns subsidiary, which handles product returns. This move is driven by the high volume of returns in the U.S., with $706 billion in returns in 2025, and the higher profit margins associated with return processing compared to traditional delivery services.
Tickers: $UPS
Topics: business strategy e-commerce logistics returns management UPS