In the US market, cross-border e-commerce, "returns" are no longer an occasional problem, but an unavoidable long-term cost. According to the U.S. Retail Returns Report, published by the National Retail Federation (NRF), the average return rate for online retail in the US has consistently remained between 15% and 20%, with some apparel, home furnishings, and 3C products experiencing even higher rates. When monthly returns consistently exceed 300 orders, many sellers clearly feel that profits are not being eaten away by advertising, but rather by returns gradually eroding their earnings.
The real problem isn't the number of returns, but whether the handling methods can keep up with the scale of returns.
Why is 300 monthly returns a cost inflection point?
When return volumes are low, sellers typically choose platform default returns, scattered third-party warehousing, or temporary handling solutions, which seem convenient. However, once returns exceed 300 orders per month, the cost structure changes significantly: return logistics costs begin to accumulate, warehousing time is prolonged, resaleable goods cannot be returned promptly, and manual communication and exception handling costs rise simultaneously. According to publicly available quotes from several US third-party warehousing and returns service providers, the overall cost per item for scattered returns is significantly higher than that of centralized processing. When the volume of returns reaches a certain level, continuing with the "scattered processing" approach essentially amplifies the hidden losses of each return.
What are the main steps involved in US return costs?
In practice, the cost of US returns is not just a single "processing fee," but rather spread across multiple stages. First, there's the final stage of return logistics and delivery confirmation; scattered addresses and frequent anomalies easily generate additional costs. Second, there's the quality inspection and status assessment of returns; without standardized procedures, sellers often have no choice but to either scrap or process them at a low price. Next comes the storage costs; once returned goods accumulate, daily costs are incurred. Finally, insufficient repackaging and restocking capabilities force sellable items into clearance sales.
When the number of returns exceeds 300, these seemingly scattered expenses quickly accumulate into a cost chain that continuously erodes profits.
Why is it that many sellers find it more expensive to "handle" returns themselves?
Many sellers, after experiencing a surge in returns, attempt to connect with multiple local US service providers. However, this often results in both inefficiency and cost overruns. On one hand, multiple providers lead to high communication costs and inconsistent execution standards. On the other hand, local US labor and time costs are inherently high, and the lack of centralized processing capabilities makes it difficult to amortize costs through economies of scale.
The result is often slower return processing, lower inventory turnover, and while seemingly saving on service fees, the actual overall costs are higher.
A centralized returns warehouse is the rational choice for large-scale sellers.
For sellers with over 300 returns per month, the value of a professional US returns warehouse lies not in the "lower unit price," but in transforming the uncertain return situation into a controllable and replicable process.
A centralized returns warehouse enables unified receiving, standardized quality inspection, categorized processing, and batch operations. This reduces anomalies, shortens processing cycles, and allows resaleable goods to quickly return to the market, thereby lowering overall returns costs.
U-Speed's US returns warehouse Infrastructure and Configuration
Focusing on the high-return scenario in the US, U-Speed has established a returns warehouse network in both the East and West coasts.
The East Coast (New Jersey) returns warehouse has an area of 7,250 square meters and a daily processing capacity of over 20,000 orders, covering the core consumer areas of the eastern US. The West Coast (Los Angeles) returns warehouse also has an area of 7,250 square meters and a daily processing capacity of over 10,000 orders, suitable for connecting western orders and trans-Pacific logistics.
Both warehouses are equipped with forklifts, light and heavy-duty shelving, fire protection and monitoring systems, and implement 24-hour security and CCTV surveillance, providing a stable and secure environment for large-scale returns.
Directly Reduce Return Costs Through Efficiency
U-Speed employs standardized operating procedures for return processing efficiency: return quality inspection is completed within 2 days, and return logistics are processed within 3-5 days; three real-life inspection photos are uploaded to the system for each returned item to help sellers quickly determine the handling solution; repackaging is also supported, allowing eligible returned items to directly enter the relisting process.
Faster processing speed means lower warehousing and storage costs, and also improved capital turnover efficiency.
Team and Service Model Determine Long-Term Stability of Returns
In high-frequency, detail-intensive businesses like returns, team structure is particularly crucial. U-Speed adopts a model led by a Chinese management team plus hands-on operation by a local Chinese team in the US, and is equipped with a professional customer service team. This strikes a balance between execution efficiency, communication understanding, and service stability, better meeting the actual operational needs of Chinese sellers.
The essence of cost reduction is to reduce ineffective spending.
For sellers with more than 300 returns per month, true cost reduction is not simply about lowering the unit price, but about reducing repetitive expenses, shortening processing time, and increasing the return rate of sellable goods. When returns are transformed from a "passive burden" into a mature and manageable process, costs will naturally return to a reasonable range—this is precisely the significance of professional US return warehouse services.
