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Home > News > US online shopping spending in May may exceed $99.7 billion. Why do cross-border sellers need local return warehouses even more? Return

US online shopping spending in May may exceed $99.7 billion. Why do cross-border sellers need local return warehouses even more?
2026-05-25

Every May marks the start of the "summer shopping season" for the US e-commerce market.

 

From Memorial Day promotions to the surge in demand for outdoor, travel, and home goods, many platform sellers experience order growth during this period. This year, the US online consumer market is even more active than in previous years.

 

According to data released by Adobe Analytics, US online spending is projected to reach $10.8 billion during the May 23-25 holiday season, a 6% year-on-year increase; total online shopping for the entire month of May is expected to reach $99.7 billion, a 7.1% year-on-year increase. Meanwhile, mobile shopping's share has surpassed 50% for the first time, reaching 52%. Home appliances, outdoor equipment, apparel, and electronics are among the categories experiencing the most significant growth.

 

This continued release of consumer demand is undoubtedly beneficial for cross-border sellers. However, behind the order growth lies an often overlooked issue: the pressure of returns will also increase simultaneously.

 

Especially in the US market, local consumers are accustomed to quick refunds and convenient returns. If after-sales processing is inadequate, store ratings, repurchase rates, and even advertising effectiveness will be affected. This is precisely why more and more cross-border sellers are starting to set up local return warehouses in the US in advance.

 

The surge in US e-commerce sales during peak seasons is amplifying the return problem.

 

In the US market, online consumption growth is often accompanied by higher return rates. According to the "2024 Consumer Returns in the Retail Industry Report" jointly released by the National Retail Federation (NRF) and Appriss Retail, total US retail returns are projected to reach $743 billion in 2024, accounting for approximately 14.5% of total retail sales. E-commerce return rates are significantly higher than those for brick-and-mortar retail.

 

For cross-border sellers, popular categories such as apparel, footwear, and home furnishings often have the highest return rates. Consumers may request returns due to issues such as size, color, or user experience, and the volume of returns increases rapidly after a surge in orders during promotional seasons.

 

In the past, many sellers would choose to ship returned goods directly back to their home country for processing. However, with rising international logistics costs and platforms' stricter requirements for after-sales efficiency, the problems with this model are becoming increasingly apparent: on the one hand, return shipping times are long and costs are high; on the other hand, many goods miss their optimal resale opportunity after prolonged transportation.

 

For cross-border businesses that emphasize efficient cash flow, slow return processing is actually eroding profits. Therefore, local US return warehouses are gradually shifting from an "optional service" to a basic requirement for cross-border sellers.

 

Why are more and more sellers setting up US return warehouses?

 

For cross-border e-commerce, the core value of local return warehouses is not just "receiving returns." More importantly, they help sellers complete return inspection, repackaging, and resale faster, minimizing inventory losses.

 

U-Speed has two major return warehouses in the US: a 7,250-square-meter warehouse in New Jersey (Eastern United States) with a daily processing capacity of over 20,000 orders; and a 7,250-square-meter warehouse in Los Angeles (Western United States) with a daily processing capacity of over 10,000 orders. The warehouses are equipped with forklifts, light and heavy-duty shelving, fire monitoring, 24-hour security systems, and CCTV systems, meeting the warehousing and processing needs of cross-border sellers facing high-frequency returns.

 

For many sellers, the real headache isn't "whether there are returns," but rather "whether the returned goods can still be sold." To address this, U-Speed's US return warehouse offers a photo-based quality inspection service, uploading three inspection photos for each item to help sellers quickly assess its condition. It also supports repackaging services, allowing eligible items to be resold.

 

Especially for footwear and apparel sellers, who have higher requirements for product appearance, U-Speed also provides customized processing services such as lint removal, simple cleaning, ironing, and odor removal, helping sellers improve the utilization rate of returned goods and reduce inventory waste.

 

With the rise of content e-commerce and mobile shopping, after-sales efficiency is becoming a competitive advantage.

 

It's worth noting that this year, mobile shopping accounted for 52% of all purchases in the US for the first time, meaning more and more consumers are placing orders instantly via their phones. The rise of mobile shopping, content marketing, and short video consumption will further increase the proportion of impulse purchases.

 

This type of consumption pattern typically means faster order placement, but also a higher demand for returns and exchanges. For cross-border sellers, inefficient after-sales processing can easily negatively impact customer reviews and platform performance. Therefore, in addition to traffic acquisition, localized after-sales capabilities are becoming an integral part of a store's competitiveness.

 

Against this backdrop, U-Speed not only provides return warehousing services but also integrates warehousing, dropshipping, and return processing to form a closed-loop US cross-border logistics service, reducing the complex processes sellers face when dealing with multiple suppliers.

 

Furthermore, U-Speed adopts a collaborative model of "Chinese management team + local Chinese team in the US," and is equipped with a professional customer service team, making it more suitable for the actual operational needs of cross-border sellers in terms of communication efficiency and service stability.

 

Behind the US peak season for consumption, sellers need a more stable return system.

 

The growth trend of online consumption in the US this May shows that the cross-border e-commerce market continues to maintain strong demand. However, for sellers, what truly determines profit margins is no longer just "whether they can sell," but also "how to handle returned goods."

 

As US consumers increasingly value after-sales experience, the importance of local return warehouses continues to rise. For cross-border sellers who wish to cultivate the US market long-term, a stable and efficient return processing system is becoming an indispensable part of peak season operations.