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Why are more and more cross-border sellers in the US abandoning the "return to China" model?
2026-01-19

In the early stages of cross-border e-commerce, many sellers opted for the seemingly easiest method when handling returns from the US: sending the returned goods back to China. However, in the past two years, an increasing number of cross-border sellers targeting the US market have proactively abandoned this model, choosing instead to process returns locally in the US. This shift is not accidental but rather a result of a combination of factors, including cost, efficiency, and operational risks.

 

The US cross-border e-commerce market continues to expand, amplifying the return problem.

 

The US remains one of the world's largest cross-border e-commerce consumer markets. According to data from the Adobe Digital Economy Index, US online consumption has maintained growth for many consecutive years, while the return problem has also amplified simultaneously. Public research shows that the average return rate for US online retail has long remained between 15% and 20%, with even higher rates for categories such as clothing and footwear. This means that once sellers establish stable order volumes in the US market, returns are almost inevitable, rather than an occasional issue.

 

As order volumes expand, the previously manageable return processing methods quickly expose structural problems.

 

The "return to China" model is becoming increasingly uneconomical.

 

From a procedural standpoint, shipping returned goods from the US back to China seems logical, but in practice, the problems with this model are becoming increasingly apparent.

 

First, there's the imbalance in cost structure. Cross-border reverse logistics incurs international shipping costs, customs clearance fees, and uncontrollable additional costs, which often don't match the residual value of the goods. For low-priced or opened goods, even if they can be reprocessed after being returned to China, the overall economics deteriorate.

 

Second, there's the financial pressure caused by the excessively long processing time. Returning goods from the US to China typically takes several weeks, during which the status of the goods is unclear, inventory cannot be reused, and refund confirmation is delayed. For cross-border sellers requiring high turnover, this "long-term freeze" on returns directly impacts cash flow and operational rhythm.

 

A more pressing issue is that not all returned goods still have reuse value. Secondary damage to goods and packaging is common during long-distance transportation. Products that could potentially be resold often end up being scrapped or sold at a low price, further reducing overall profit margins.

 

Platform rules and consumer expectations are also forcing changes in return methods.

 

Besides cost and timeliness issues, changes in mainstream US e-commerce platforms and consumer behavior are driving sellers to rethink return processes.

 

On the one hand, platforms are increasingly emphasizing the return experience and refund speed. Slow refund processing and long after-sales response cycles often directly impact account performance, buyer ratings, and even traffic allocation. In this environment, relying on cross-border return processes makes rapid response difficult.

 

On the other hand, US consumers' expectation of "local returns" is becoming the norm. Clear return addresses, trackable local logistics, and short refund cycles have become crucial factors influencing purchasing decisions. This makes the "return to China" approach less competitive in terms of user experience.

 

From "return to China" to "local processing," sellers' focus is shifting.

 

It is against this backdrop that more and more cross-border US sellers are turning to local US return processing models. Compared to returning goods via the original shipping method, the core advantage of local returns lies not in the "change in form," but in the restructuring of the return logic: returned goods are first centrally received in the US, quickly undergo basic quality inspection and classification, and then relisted based on their condition, followed by centralized return shipping or compliant processing.

 

The essence of this model is to transform returns from a "passive cost item" into a controllable and manageable operational process.

 

U-Speed's US return warehouse is becoming a practical choice for sellers.

 

Against the backdrop of continuously growing demand for local US return processing, U-Speed has established a mature return warehouse system in the US, providing cross-border sellers with stable and executable solutions.

 

U-Speed operates two major return warehouses in the United States: one in the East Coast (New Jersey) and the other in the West Coast (Los Angeles), forming a coordinated East Coast and West Coast network.

 

East Coast New Jersey Return Warehouse: Approximately 7,250 square meters, with a daily processing capacity of 20,000+ items.

West Coast Los Angeles Return Warehouse: Also 7,250 square meters, with a daily processing capacity of 10,000+ items.

 

The warehouses are equipped with forklifts, light and heavy-duty shelving, fire protection and monitoring systems, and implement 24-hour security and CCTV management, enabling them to maintain stable processing capacity even during high return cycles.

 

More than just "receiving returns," U-Speed offers comprehensive return processing capabilities.

 

Compared to a single return receiving address, U-Speed's US return warehouses emphasize process integrity and controllability.

 

In terms of team structure, the China return business management team oversees the process, while a local Chinese team in the US handles on-site operations and collaborates with professional customer service for information feedback, reducing cross-time zone communication costs and ensuring operational stability.

 

In terms of timeliness, returned goods can undergo quality inspection within 2 days of arrival at the warehouse, with subsequent return logistics processing time controlled within 3-5 days, helping sellers quickly confirm inventory status and fund arrangements.

 

In terms of service, U-Speed not only provides return processing but also combines warehousing and dropshipping services, gradually forming a closed-loop local logistics system in the US encompassing warehousing, shipping, and returns, reducing the management costs for sellers from multiple intermediaries.

 

Abandoning the old model is essentially choosing a more controllable future.

 

More and more cross-border US sellers are abandoning the "return to China" model, not because it's completely unfeasible, but because it's no longer the optimal solution in the current market environment.

 

When returns become a high-frequency, long-term operational variable, the availability of local processing capabilities is directly impacting sellers' cost structure, capital efficiency, and long-term competitiveness.

 

For sellers hoping to cultivate the US market deeply, leveraging US return warehousing services like U-Speed to transform returns from a "burden" into a manageable process is becoming a more realistic and sustainable option.