For cross-border e-commerce sellers, "sales volume" is only half the battle; for apparel, returns and processing are far more challenging. This is especially true in the US market, where the high return rate and difficulty in handling apparel returns are becoming increasingly prominent. Many sellers are asking: are there overseas warehouses that can receive returns locally and destroy (or otherwise dispose of) unsellable goods?
The US apparel market continues to grow, but the pressure of returns is immense.
The US has always been one of the world's leading fashion markets. With the widespread adoption of e-commerce and the rise of fast fashion, US consumers' demand for online clothing purchases remains strong. However, this consumption habit is accompanied by extremely high return rates. According to a retail industry report, total US consumer returns are projected to reach $890 billion in 2024, equivalent to 16.9% of total retail sales.
Apparel and footwear, in particular, are among the most frequently returned categories in e-commerce due to reasons such as incorrect sizing, poor fitting experiences, and dissatisfaction with styles. The return rate for online apparel is significantly higher than other categories: reports indicate that the online apparel return rate in the US is approximately 22%.
High return frequency, coupled with consumers' expectations of free returns, has created increasing challenges for sellers in terms of operations and cost management within the American, relatively lenient return culture.
"Destruction"—Why is it a source of confusion for cross-border sellers?
Faced with a large volume of returned clothing, some sellers are willing to relist resellable items, but what about severely damaged clothing, items with torn tags, quality issues, or slow-moving styles? If the warehouse is unable to sort or process these items, several problems may arise:
Inventory accumulates, consuming warehouse space;
Manual identification is difficult and prone to misjudgment;
Platform reviews and cost pressures increase;
Finally, unsellable goods, if not processed promptly, must be shipped back overseas or destroyed, resulting in high logistics or processing costs.
Therefore, many cross-border sellers are looking for a local warehousing partner who can receive returns, perform quality inspection and sorting, and destroy (or dispose of) unusable clothing based on the inspection results.
Are there US return warehouses that can handle destruction or clearance sales? The answer is: Some service providers can customize processing solutions.
While not all US return warehouses publicly offer destruction services, some specialized return warehouses can provide customized solutions based on seller needs. This includes: return inspection, sorting, repackaging, return shipping for clearance, and even assistance with inventory clearance, donation, or destruction.
Among numerous warehousing service providers, U-Speed's US return warehouse has a significant advantage in apparel category processing. Their strong return processing capabilities, quality inspection processes, and personnel and management systems provide sellers with a foundation for flexibly handling non-resaleable goods.
U-Speed US return warehouse: Combining Strength and Flexibility
U-Speed has two major return warehouses in the US: one in the East Coast (New Jersey) and one in the West Coast (Los Angeles), providing cross-border sellers with localized, highly efficient return receiving and processing services.
East Coast (New Jersey) Return Warehouse: Approximately 7250 square meters, with a daily processing capacity of over 20,000 orders.
The Los Angeles West Coast Returns Warehouse: Also 7250 square meters, with a daily processing capacity of 10,000+ orders.
Both warehouses are equipped with forklifts, light and heavy-duty shelving, comprehensive fire monitoring, 24-hour security, and CCTV systems, making them ideal for apparel returns—a category that is relatively small but requires temperature control and safety monitoring.
Regarding the team, U-Speed employs a Sino-US collaborative operation: the Chinese management team is responsible for systems, processes, and quality inspection standards, while the local Chinese team in the US handles the specific operations, along with professional customer service to provide stable and meticulous service to cross-border apparel sellers.
In terms of timeliness, U-Speed typically completes return quality inspection within 2 days, and return logistics within 3-5 days. This efficiency is particularly important for handling peak periods and large volumes of returns.
Handling of Destroyed or Unsellable Apparel: How U-Speed Helps Sellers Implement Solutions
Tiered Quality Inspection and Classification: After quality inspection, returned goods can be classified into categories such as "Resaleable," "Needs Clearance," and "Damaged."
Clearance or Return: For inventory that is no longer suitable for resale but still has residual value, U-Speed can assist with packing, consolidation, or return to the seller.
Assistance with Destruction or Disposal: For unsellable goods that truly need to be disposed of, destruction methods (such as environmentally friendly destruction or scrapping) can be discussed, or donation or bulk disposal options can be chosen.
Closed-Loop Cross-Border Service: Combined with U-Speed's first-leg warehousing and dropshipping services, a complete "inbound + storage + outbound + return + disposal" process is formed, saving sellers the hassle of finding multiple service providers.
This customized capability is crucial for apparel cross-border sellers, as destruction is not their first choice, but partial returns are a reality they must face. U-Speed's classification and disposal methods provide sellers with flexible and actionable options in the US market.
With its dual warehouse network in the East and West US, powerful processing capabilities, and flexible classification and disposal mechanisms, U-Speed is a solution that cross-border apparel sellers should definitely consider. For sellers with large returns, significant differences in product value, and clear needs for destruction, U-Speed provides a practical channel that ensures both efficiency and flexibility in handling "unsellable" inventory.
