Many cross-border sellers share a common feeling this year: TikTok Shop in the US is entering a true explosive growth phase.

Data shows that from January to April 2026, TikTok Shop's sales in the US market reached $6.75 billion, with over 215,000 small and medium-sized sellers on the platform, a year-on-year increase of 25%; meanwhile, the sales of small and medium-sized sellers increased by 66% year-on-year.

More importantly, even with the increasing number of international brands and large merchants joining, TikTok Shop's small and medium-sized sellers continue to maintain rapid growth. The reason is simple: TikTok Shop is inherently a "content-driven" platform.

Consumers are not just searching for products, but constantly discovering new brands through short videos, live streams, and influencer recommendations. Official TikTok data shows that 67% of consumers discover new brands on the platform, and approximately 70% of users are willing to buy products recommended by influencers. This means that for cross-border sellers, TikTok Shop remains a platform full of opportunities.

However, at the same time, the competitive logic of the platform is also changing.

Since the explosion of TikTok Shop, the real competition for sellers is no longer about "product listings."

In the early days, many sellers relied on low prices and rapid product listings to achieve sales volume. However, now, simply relying on "traffic dividends" is increasingly difficult to sustain stable sales. This is because the core of TikTok Shop is essentially the consumer experience.

Especially in the US market, users' expectations for logistics speed, return process, and product quality are rapidly approaching those of established e-commerce platforms like Amazon. If shipping, after-sales service, and return processing are slow, even if short-term traffic is generated, it's difficult to build stable repeat purchases. This is becoming increasingly evident.

The National Retail Federation's (NRF) "2025 Retail Returns Landscape" shows that the return rate for online e-commerce in the US is projected to reach 19.3%. For TikTok Shop sellers, this means returns are no longer an occasional issue but a part of daily operations. This is especially true for popular TikTok Shop categories such as apparel, footwear, and cosmetics, which already have relatively high return rates.

Therefore, more and more sellers are realizing that what truly determines profit margins is not just "how much is sold," but also "how returns are handled."

Why Do TikTok Shop Sellers Need Local US Return Warehouses More?

In the past, many cross-border sellers chose to return goods directly to China. However, as order volume has increased, the problems with this model have become increasingly apparent.

First, it's slow. Once a US consumer initiates a return, if the goods need to be shipped back internationally, the entire process often takes several weeks. During this time, not only can inventory not circulate, but it can also affect refund efficiency and customer satisfaction.

Second, it's costly. For many low-value goods, the international return shipping cost can even exceed the value of the goods themselves. This is especially true for footwear and apparel; if there are only minor stains, damaged packaging, or wrinkles, they still have resale value, but traditional return methods often only result in destruction.

Therefore, more and more TikTok Shop sellers are now adopting a local US return processing model. This involves completing the receipt, quality inspection, and sorting in the US first, and then repackaging, relisting, relabeling, or centralized return of the goods based on their condition. Compared to the traditional model, the biggest advantage of local return warehouses is that they can shorten the return cycle and improve product utilization.

Taking U-Speed's US return warehouses as an example, it currently has two major return warehouses located in New Jersey (Eastern United States) and Los Angeles (Western United States). The Eastern United States return warehouse has a total area of 7,250 square meters and a daily processing capacity of over 20,000 orders; the Los Angeles return warehouse also has an area of 7,250 square meters and a daily processing capacity of over 10,000 orders. Both warehouses are equipped with forklifts, light and heavy-duty shelving, fire monitoring, 24-hour security systems, and CCTV systems, meeting the return processing needs of different types of goods.

Compared to simply "collecting and returning packages," U-Speed emphasizes comprehensive return processing capabilities.

US return logistics time can be controlled within 3-5 days; return quality inspection time is approximately 2 days; each item requires 3 photos for quality inspection to be uploaded to the system; repackaging services are supported to help products meet resale standards.

For popular footwear and apparel products on TikTok Shop, U-Speed also provides customized processing services such as lint removal, simple cleaning, ironing, and odor removal to help sellers improve the utilization rate of returned goods.

In addition, U-Speed offers a combination of cross-border logistics services, including warehousing, dropshipping, and returns, helping sellers reduce the pressure of dealing with multiple suppliers and creating a closed-loop local logistics system in the US.

The competition on TikTok Shop is accelerating, and after-sales capabilities are becoming a new barrier to entry.

While TikTok Shop in the US is still in a phase of rapid growth, as the platform ecosystem matures, sellers are competing on more than just product selection and traffic generation. Logistics capabilities, return processing capabilities, and after-sales response capabilities are becoming new competitive barriers.

Especially given that US consumers are increasingly valuing the shopping experience, those who can process returns faster, reduce after-sales losses, and improve customer satisfaction are more likely to achieve long-term stable operations on TikTok Shop. A stable and efficient local US return warehouse system is also becoming a crucial element for more and more cross-border sellers to improve operational efficiency.