In cross-border e-commerce operations, many sellers ask two questions when choosing overseas warehouses: Are there any without a minimum spending requirement? And can they provide return services simultaneously?
This is not accidental. According to the U.S. Retail Returns Report published by the National Retail Federation (NRF), the volume of returns in the U.S. retail market has consistently remained high, with online channels showing significantly higher return rates than brick-and-mortar retail. The European market also has a robust consumer protection system and a mature return mechanism. In other words, for those operating in the European and American markets, returns are the norm, not the exception.
Because of the uncertainty in return volume, sellers are particularly sensitive to "cost flexibility" and "return processing capabilities" when choosing overseas warehouses.
Why do many overseas warehouses set minimum spending requirements?
The operating cost structure of overseas warehouses is relatively fixed, including storage rent, labor costs, system maintenance, and management costs. To ensure basic profitability, some service providers set monthly minimum spending requirements. For large sellers with stable order volumes, this model has little impact; however, for small and medium-sized sellers, new entrants, or seasonal products, minimum spending often means additional pressure:
Decreased business volume during off-seasons, yet fixed costs still incurred; Fluctuations in return volume, making costs difficult to predict; Higher risk during new market testing phases.
Therefore, "no minimum spending" has become a core condition attracting increasing attention from sellers.
Is no minimum spending really more cost-effective?
The key is not "cheaper," but "controllable." If overseas warehouses adopt a pay-as-you-go model, no fees are incurred if there is no activity, allowing sellers to flexibly manage inventory and returns according to sales rhythm without worrying about fixed expenses.
In the current competitive cross-border environment, cash flow management is particularly important. Inventory turnover rate and return processing efficiency directly affect the speed of cash flow. An overseas warehouse without a minimum spending threshold is more suitable for sellers with significant business fluctuations or those in the expansion phase.
Can overseas warehouses provide return services, and why is that important?
Many overseas warehouses only provide warehousing and drop shipping, while returns require separate service providers. While the division of labor seems clear, it actually brings several problems:
Fragmented data and outdated inventory information
Inefficient communication with multiple parties
Returned goods cannot be quickly restocked
In the European and American markets, slow return processing not only affects inventory turnover but can also negatively impact platform ratings. Industry experience shows that the shorter the return processing cycle, the higher the likelihood of resale. Therefore, an overseas warehouse that can provide both warehousing and return processing is more conducive to forming a complete operational loop.
U-Speed overseas return warehouse: No Minimum Charge, More Flexible
In this regard, U-Speed adopts a "no minimum charge" model. After opening an account, no fees are incurred if the return service is not used. Sellers only pay for the actual return operations, making the cost structure more transparent and flexible. In the US market, U-Speed operates two major return warehouses: one in the East Coast and one in the West Coast.
The East Coast (New Jersey) return warehouse has a total area of 7,250 square meters and a daily processing capacity of 20,000+ items.
The West Coast (Los Angeles) return warehouse also has an area of 7,250 square meters and a daily processing capacity of 10,000+ items.
The warehouses are equipped with forklifts, light and heavy-duty shelving, fire monitoring equipment, and 24-hour security and CCTV systems, providing a safe and standardized processing environment for returned goods.
In addition, U-Speed has also established an overseas return warehouse network in countries such as the UK, France, Germany, Italy, and Spain, helping sellers cover more regions in Europe and America.
Timeliness and professionalism are the core of our return service.
The value of our return service is ultimately reflected in processing efficiency and transparency. U-Speed's US return quality inspection time is 2 days, and the return logistics time is 3-5 days. Each returned item requires three real-life photos to be uploaded to the system, allowing sellers to remotely assess the product's condition. Repackaging is also supported, enabling eligible items to be resold and reducing losses.
In terms of staffing, U-Speed employs a Chinese-led returns management team, with local Chinese-American teams handling operations, supplemented by a professional customer service team. This ensures standardized on-site operations while minimizing communication costs.
Furthermore, U-Speed offers a comprehensive solution combining warehousing, dropshipping, and returns, forming a closed-loop cross-border logistics service and avoiding sellers frequently dealing with multiple suppliers.
Choosing an overseas warehouse hinges on stability and flexibility.
Seeking an overseas warehouse with no minimum spending requirement is essentially about reducing fixed risks; focusing on whether a return service is provided aims to improve overall operational efficiency. In the e-commerce environment of Europe and America, where return rates are high, return processing capabilities have become an essential infrastructure for cross-border sellers. An overseas warehouse with no minimum spending requirement and a complete return processing procedure is more conducive to sellers' stable development. When warehousing, shipping, and returns form a complete closed loop, inventory management becomes clearer, cost structure becomes more transparent, and sellers can move more easily in market competition.
