UPS Ground Saver packages being held as counterfeit USPS labels via Shopify Shipping, 10 packages held by USPS, Shopify refusing to help

I wanted to post this in case other merchants are experiencing the same issue, and to see if anyone has found a resolution.

I purchased 10 UPS Ground Saver labels through Shopify Shipping and gave the packages directly to USPS, as I had done previously for years without issue. The labels show both UPS and USPS branding and tracking numbers, which gave no indication that USPS drop-off wasn’t permitted. (I know now their arrangement recently changed and they are no longer permitting UPS ground saver to be dropped off directly even though it was allowed before)

All 10 packages are now being held by USPS flagged as unpaid postage and fraud. My customers have been without their orders for over 17 days. USPS says they will not return the packages or deliver them now.

After spending 4+ hours on the phone with UPS, USPS, and Shopify, here is what I know:

  • Shopify confirmed the labels were paid correctly

  • UPS says they never scanned the packages so they can’t help

  • USPS says the third party who created the label (Shopify) needs to authorize release

  • Shopify says this is outside their control and I have reached the highest escalation level available

Shopify’s own support specialist acknowledged in writing that I am not the only merchant this has happened to and that their label purchase flow needs better warnings. Despite this, no one has been able to get my packages released.

One package has the chance to be delivered if postage is paid (it’s local and would be approximately $7 in charges) that USPS says would release it for delivery immediately if paid by the label creator. Shopify will not help and USPS will not let me pay it directly.

Has anyone else experienced this? Did you find a resolution? I am going to be out almost $1000 in items and labels.

It’s always a good idea to stay on top of the policies and guidelines of the people and companies we do business with. This is quite old behavior (Jan 2025) and should have been noticed. Sorry you had this misfortune.

I dont use stamps.com or Pirate ship which definitely give a warning from what I can tell in my research over the past few days. Shopify shipping doesn’t have any warning or notice documented through the process of creating labels. I’m sure it’s buried somewhere that most people don’t frequently read over to see changes and they never sent an email to users who use shopify shipping about the changes. But yeah definitely a hard lesson learned, wish shopify would help.