Shanghai has long been one of China's most active cross-border e-commerce hubs, boasting the most complete cross-border e-commerce industrial ecosystem in the country, encompassing everything from supply chain infrastructure and brand building to logistics channels and policy support. As more and more businesses and brand sellers expand into the North American market, "overseas returns" have become an essential part of their operations that requires advance planning. Especially in markets like the US, where return culture is mature and policies are transparent, sellers lacking professional return channels often experience slowed cash flow and squeezed profit margins.
Shanghai's cross-border e-commerce continues to grow, and sellers are increasingly reliant on efficient overseas service systems.
According to data released by the Shanghai Municipal Commission of Commerce, Shanghai's cross-border e-commerce import and export volume exceeded 300 billion yuan for the first time in 2023, a year-on-year increase of 49%. Export business performed strongly, with categories such as 3C consumer electronics, home furnishings, apparel, cosmetics, and outdoor sports showing particularly strong performance in the US market. Meanwhile, Shanghai is home to leading supply chain management companies, cross-border brands, independent website sellers, and new foreign trade companies nationwide, with more and more companies targeting North America as a major growth market.
However, the high return rate of US consumers forces cross-border sellers to confront new cost structures. According to data from the National Retail Federation (NRF), the return rate for e-commerce in the United States has consistently remained between 16% and 20%, and even higher during peak seasons. For Shanghai sellers primarily dealing in apparel, home goods, and small appliances, returns are both a common occurrence and a key variable affecting profits.
In this industry context, Shanghai sellers need more than just a shipping chain; they need a complete "forward + reverse" service system, in which overseas return warehouses play a crucial role in receiving, sorting, restocking, and reselling returns.
Why are US returns difficult to handle? Three most common problems encountered by Shanghai sellers
When operating in the North American market, Shanghai businesses commonly face the following difficulties with returns:
First, excessive costs and timelines. If US consumers ship returns back to China, international logistics costs often exceed the cost of the goods themselves. Even using postal channels presents challenges such as slow delivery times and unpredictable customs clearance periods, making it difficult for sellers to quickly restore sellable inventory.
Second, difficulties in restocking. Many returns only involve minor packaging damage or small defects, which can be easily resold after simple tidying. However, without local warehouses, sellers cannot determine the true condition of the returns, let alone select resaleable goods.
Thirdly, returns are concentrated during peak seasons. After Black Friday and Christmas sales, the number of returns in the US surges in a short period. If sellers do not have a local team or stable warehouse, they are prone to problems such as return backlogs, lost packages, and excessively long processing times, ultimately squeezing profits.
These pain points have led more and more Shanghai sellers to seek professional US return warehousing services to reduce losses from returns through local quality inspection, repackaging, restocking, or clearance sales.
U-Speed US return warehouse: East Coast + West Coast Dual Warehouses, Establishing a Stable "Return Receiving Point" for Shanghai Sellers
To help cross-border sellers solve the North American return problem, U-Speed has large return warehouses on both the East and West coasts of the US, forming a return processing network covering most of the US population area.
U-Speed's East Coast (New Jersey) returns warehouse covers 7,250 square meters and has a daily processing capacity of over 20,000 items. Located near major East Coast cities, it's ideal for handling returns from New York, Boston, Philadelphia, and other areas.
U-Speed's West Coast (Los Angeles) returns warehouse is also 7,250 square meters and has a daily processing capacity of over 10,000 items, enabling rapid processing of returns from California and the West Coast.
Both warehouses are equipped with forklifts, light and heavy-duty shelving, fire suppression systems, CCTV monitoring, and 24-hour security. They are capable of handling returns for a wide range of categories, including apparel, home goods, outdoor gear, and small appliances, providing Shanghai sellers with a stable and secure warehousing environment.
More importantly, U-Speed's US returns warehouses employ a "US operations team + China management team" model. The China team manages the returns process, while the US-based Chinese team handles on-site operations, ensuring smooth communication, meticulous processing, and transparent and traceable returns information.
From Returns Inspection to Restocking: Making Returns No Longer a "Sunk Cost"
In terms of specific operations, U-Speed's US returns warehouse supports a complete returns processing workflow, including:
Returns Inspection – Completed in as little as 2 days, including visual inspection
Simple cleaning, minor repairs, repackaging, labeling/re-labeling
Photo documentation, system entry
Recyclable inventory classification: Can be restocked / Can be cleared out / Needs destruction
Restocking service: Goods in good condition can be directly returned to the warehouse, re-entered into the US local sales process
Returns logistics processing (3–5 days)
Returns back to China service (on demand)
This process ensures that "returns" no longer equate to "losses." Shanghai sellers are particularly concerned about the speed of inventory turnover and cash flow, and U-Speed's localized returns processing greatly shortens the time it takes for goods to re-enter the sales chain, significantly improving inventory utilization efficiency.
Closed-Loop Logistics: Enabling Shanghai Sellers to Have a More Complete Supply Chain Capability in the US
Beyond returns services, U-Speed's services in the US have extended to "first-leg shipping + warehousing + drop shipping + returns," helping cross-border sellers build a complete closed-loop US supply chain.
In the highly competitive North American market, a stable supply chain system often determines long-term competitiveness more than low prices or advertising investment.
Shanghai's cross-border e-commerce is growing rapidly, and while sellers are accelerating their expansion into the US market, they must also simultaneously build overseas after-sales processing capabilities. Returns are not a burden, but rather part of the supply chain; through localized processing in professional return warehouses, returns can be completely transformed back into marketable assets.
U-Speed's US return warehouses, with their dual warehouse layout in the East and West Coasts, professional team, and efficient processing time, provide Shanghai sellers with a reliable return solution. For sellers expanding their US product lines or planning to improve operational efficiency, having a mature US return processing system will become a crucial pillar for long-term brand growth.
