USPS just made a quiet change with big consequences for ecommerce sellers. The USPS unused label refund delay now adds a 14-day hold before any refund is processed for voided shipping labels that were never scanned.
The new policy, which took effect on October 18, 2025, means you will no longer see refunds hit your account right away. Whether you printed a label in error, canceled an order, or caught a last-minute address issue, that money will now be locked up for two weeks.
For sellers printing dozens or even hundreds of USPS labels every day, this delay can quickly turn into a cash flow crunch. What used to be a simple fix now comes with financial drag, just when you need things to move faster.
What exactly changed?
Previously, if you printed a USPS label but never used it, you could void it and expect the refund to process within a few days. That made it easy to fix shipping mistakes, handle last-minute address changes, or cancel orders without much financial impact.
Now, USPS is holding all refunds for 14 days before processing them. This affects any USPS label that has not been scanned into the mail system. If the label was created but the package was never dropped off or picked up, the refund will be delayed.
The goal is to cut down on fraudulent refund claims, but the change applies across the board, whether you ship through USPS directly or through a platform like Ordoro.
Why this matters more than it seems
This refund delay might seem like a minor policy change, but for eCommerce businesses, especially during Q4, the timing could not be worse.
Here is how this could affect you:
- Cash flow bottlenecks
You might have hundreds of dollars tied up in unused labels with no access to those funds for two weeks. For smaller shops running lean, that money matters. - Mistakes are more expensive
A typo in a shipping address or a customer who cancels last minute now creates a longer, more frustrating process to get your refund back. - Slower recovery from errors
If you preprint labels or work in bulk, voiding unused labels becomes more complicated, especially if you need to issue refunds or reallocate shipping funds fast. - Operational drag during peak
When every day counts, especially in November and December, the delay can slow your ability to respond to fast-moving order volume.
This is not a change you want to learn about after your refund doesn’t show up.
What sellers can do right now
There are a few smart ways to stay ahead of this policy and reduce the impact on your business.
Print labels closer to fulfillment
Wait to generate shipping labels until you know the package is packed and ready to ship. Avoid printing too far ahead, especially if the order could change or cancel.
Validate addresses before labeling
Ordoro can automatically flag incomplete or invalid addresses before a label is created, helping you prevent costly mistakes from the start.
Use automation to set shipping defaults
Build shipping presets inside Ordoro to minimize errors and streamline your workflows. Automate the carrier, service, and packaging for every type of order.
Track your pending refunds
If you need to void labels, keep a record of which refunds are still outstanding. Build this into your cash flow planning, especially during peak months.
Avoid unnecessary voids with better order visibility
When your inventory, fulfillment, and shipping tools are fully connected, there is less guesswork. Ordoro helps you make smarter, faster decisions with fewer misprints.
Frequently asked questions
Why is USPS delaying refunds for unused labels?
To prevent refund abuse. USPS now waits 14 days before processing refunds on labels that were never scanned into the mail system.
Does this affect all USPS shipping labels?
Yes. Any USPS label that is voided before being scanned will be held for two weeks before the refund is processed.
Do other carriers have similar delays?
No. This change only applies to USPS at this time. UPS and FedEx still process refunds on their own timelines.
Can I still void USPS labels through Ordoro?
Absolutely. You can void any USPS label directly in Ordoro, track its refund status, and manage all your shipping workflows in one place.
What sellers need to know moving forward
This is a small policy change with real ripple effects. During the holiday season, when your shipping volume spikes and customer expectations are higher than ever, even a short delay can cause big problems.
If you rely on USPS for affordable and reliable shipping, you now need to be more strategic than ever about how and when you create your labels.
Ordoro helps ecommerce sellers stay ahead of changes like the USPS unused label refund delay. From automated shipping rules to label management and refund tracking, our tools help you move faster and cleaner, even when carriers shift the rules.
Want to ship smarter and avoid refund delays before they impact your bottom line?
Talk to one of our eCommerce experts and see how Ordoro can streamline your entire shipping process.