In recent years, the scale of e-commerce returns in the United States has continued to grow, but this has also brought an increasing number of return fraud problems. For cross-border sellers, this is no longer just a cost issue, but a risk that businesses must directly confront. In 2024, the total value of retail returns in the United States reached $685 billion, of which approximately 15% was due to return fraud. This means that sellers lose an average of over $100 billion annually due to return fraud.
Among these return fraud activities, swapping, empty packages, or falsifying return contents are the most troublesome types for sellers. How can cross-border sellers prevent these problems? This article will break them down one by one and propose practical countermeasures, naturally leading to the introduction of local US return warehousing services as an effective solution.
What are Return Swapping and Empty Packages?
Return swapping and empty packages are typical return fraud methods. It refers to buyers not returning the original goods as required, but instead replacing them with empty boxes, garbage, other items, or altered goods to fraudulently obtain a refund. This behavior actually exists in the US market: some sellers have shared stories of receiving return packages containing completely empty boxes, yet the platform processed refunds directly without any evidence.
Another similar scenario involves a buyer returning the package, but the tracking information shows the item was signed for at the address, yet the product's condition is completely different from the original shipment. This "fake tracking"/"fake delivery" is also a form of e-commerce fraud. Similar package redirection scams have caused billions of dollars in losses in e-commerce retail.
This type of fraud not only increases the seller's direct losses but also affects inventory records, cash flow, and even the store's performance metrics on the platform.
Why are these fraudulent activities so common in the US e-commerce market?
US consumers have a relatively mature return culture, and mainstream e-commerce platforms (such as Amazon and eBay) offer very lenient return policies, allowing buyers to return goods with almost no burden. While this is intended to improve the consumer experience, it has inadvertently amplified the space for abuse and fraud related to return rights.
According to analysis by the NRF and third-party return management agencies, the return rate for US consumers has stabilized at a high level, remaining in the range of approximately 15%–17% in recent years. Return rates are even higher during holidays, and this high return rate itself provides "cover" for fraudulent activities.
Furthermore, many platforms employ a "refund first, review later" mechanism when processing returns, making improper refunds appear legitimate in form but easily exploitable by malicious actors.
How can sellers effectively prevent return fraud?
While return fraud seems frequent and difficult to prevent, several practical strategies can mitigate the risk:
Strengthen Pre-Shipping Records
Take high-resolution photos of the product before shipping, especially details of easily swapped parts (such as serial numbers and labels), and retain complete shipping records. This is crucial evidence in subsequent disputes.
Strictly Review Returned Goods Status
Conduct thorough quality inspections on returned goods, record their actual condition, and promptly report any obviously abnormal returns to the platform with evidence.
Use Smart Tools to Monitor Abnormal Returns
Some platforms and tools (such as AI-integrated return analysis systems) can identify abnormal return patterns and provide early warnings for high-risk orders.
While these strategies are effective, for large-scale returns, manual methods and tools alone are insufficient for comprehensive coverage. Especially for cross-border sellers facing massive volumes of returns, systematically handling, preserving evidence, and minimizing losses becomes a greater challenge.
US Local Return Warehouses: An Effective Solution for Building a Stronger Defense
In combating return fraud, a significant trend is that cross-border sellers are moving their return processing to the US, leveraging return warehouse services with professional quality inspection and evidence preservation capabilities to improve efficiency and risk control.
U-Speed's US return warehouse has become a crucial partner for many sellers implementing this strategy.
U-Speed operates two major return processing centers in the US:
U-Speed East Coast (New Jersey) Return Warehouse: Approximately 7,250 square meters, with a daily processing capacity of 20,000+ items, serving as a logistics hub covering return needs on both the East and West Coasts.
U-Speed West Coast (Los Angeles) Return Warehouse: Also 7,250 square meters, but with a daily receiving and processing capacity of 10,000+ items.
Both warehouses are well-equipped with advanced hardware and software, including forklifts, light and heavy-duty shelving, and fire monitoring systems. They are also equipped with 24-hour security and CCTV surveillance, providing a highly reliable environment for receiving and inspecting returned goods.
How does U-Speed's return service help sellers prevent fraud?
① Professional Team Ensures Quality
The U-Speed return process is planned by the China return business management team, executed by the local Chinese operations team in the US, and supplemented by customer service support, ensuring efficient cross-time zone cooperation and meticulous attention to detail.
② Efficient Quality Inspection and Image Evidence
U-Speed provides a photo inspection service during the return quality inspection process. At least three photos of each returned item are uploaded to the system, providing reliable evidence for subsequent appeals or platform submissions.
③ High-Efficiency Return Processing Reduces Exploitation Opportunities
Returned goods can receive quality inspection feedback within 2 days of arrival at the warehouse, and return logistics processing is completed within 3-5 days, minimizing the space for exploitation of return loopholes.
④ Integrated US Local Logistics Closed-Loop
Returns processing, combined warehousing, and dropshipping form a complete closed-loop service. Sellers no longer need to distribute resources across multiple channels for returns and forward shipments, improving overall operational efficiency.
While return fraud in the US market is indeed complex and presents numerous challenges for cross-border sellers, strengthening local return processing capabilities, evidence collection, and quality inspection systems can reduce losses from fraudulent returns such as "empty packages" and "switched packages" at the source.
Especially US return warehousing services like U-Speed, which not only provide professional quality inspection systems but also help sellers build a more compliant and efficient return defense system, thereby truly improving return processing quality and protecting profits and brand experience.
