For many cross-border sellers, an order seems to end once a customer clicks "request return."
However, the reverse logistics process only truly begins when an item is shipped back from the customer. It might be relisted for sale, enter an overseas return warehouse awaiting processing, or be abandoned due to delayed processing.
For sellers, different handling methods not only determine the final destination of an item but also directly impact operating costs and profits.
The scale of returns in the US continues to expand, with an increasing number of returned goods.
In recent years, the US e-commerce market has continued to grow, and returns have become an important part of the retail industry. According to the latest data released by the U.S. Department of Commerce, based on data from Digital Commerce 360, US e-commerce retail sales are expected to reach approximately $1.234 trillion in 2025, a year-on-year increase of 5.4%, with e-commerce sales accounting for 23.1% of all online retail sales, a record high.
Meanwhile, the "2025 Retail Returns Landscape" jointly released by the National Retail Federation (NRF) and Happy Returns shows that total retail returns in the US are projected to reach $849.9 billion in 2025, accounting for 15.8% of total retail sales; the average return rate for e-commerce orders reaches 19.3%.
Where do returned goods usually go after being returned by US consumers?
Many people assume that returned goods are immediately put back on the shelves for sale. In fact, a returned item typically undergoes one of the following processes:
First: Resale. If the product packaging is intact and it functions normally, and it's returned simply because the consumer doesn't like it or the size doesn't fit, it can be repackaged after inspection and put back into inventory for sale. This is the outcome sellers most desire.
Second: Local repair or restoration. For items with slightly damaged packaging, missing tags, dust, or odors, they can be restored to resale condition through repackaging, simple cleaning, lint removal, and ironing, improving product utilization.
Third: Return to the home country. For some high-value goods, sellers may choose to return them domestically for repair or reuse. However, cross-border shipping is time-consuming and costly, so this method is generally only suitable for high-value goods.
The fourth method: Direct abandonment or destruction. This is the most common approach used by many cross-border sellers. When the value of the goods is low, or when sellers lack the capacity to handle returns locally in the US, they often apply for direct abandonment or destruction to avoid continuing to pay storage fees. This is also the most costly method, as the value of the goods, procurement costs, and logistics investment will all be lost.
Why are more and more sellers no longer in a hurry to abandon their goods?
In the past, many sellers believed that there was no need to invest in processing returned goods. However, as the scale of returns continues to expand, more and more sellers are beginning to realize that only a small number of goods are truly unsellable.
For example, in categories such as shoes, apparel, bags, and home furnishings, many items are simply returned after being tried on and opened by consumers, without any quality issues. Direct abandonment not only results in the loss of the goods themselves but also means that all initial investments in procurement, first-leg logistics, and platform delivery are wasted.
In contrast, many goods are still resalable if the receipt, quality inspection, photography, repackaging, and simple sorting can be completed locally in the US. Therefore, professional overseas return warehouses are increasingly becoming the choice for cross-border sellers.
U-Speed US return warehouses: Enabling More Possibilities for Returned Goods
To address the growing demand for returns in the US market, U-Speed has established two major return warehouses in the East Coast (New Jersey) and West Coast (Los Angeles). The New Jersey warehouse has an area of 7,250 square meters and a daily processing capacity of over 20,000 items; the Los Angeles warehouse also has an area of 7,250 square meters and a daily processing capacity of over 10,000 items, handling both consumer returns and returns from Amazon FBA and other overseas warehouses.
During the return processing, U-Speed employs a collaborative operation between its Chinese management team and a local Chinese operations team in the US, providing sellers with services such as return receipt confirmation, photographic quality inspection, and repackaging. Three quality inspection photos are uploaded to the system for each item, helping sellers remotely monitor product status. Return logistics takes approximately 3-5 business days, and quality inspection takes approximately 2 business days, enabling sellers to quickly make return processing decisions.
For high-return categories such as footwear, apparel, bags, and home goods, U-Speed also offers customized return processing services including lint removal, simple cleaning, ironing, and odor removal, allowing more eligible items to return to resale status, increasing resale rates, and reducing value loss from abandoned items.
Furthermore, U-Speed provides integrated US cross-border logistics services including warehousing, drop shipping, and return processing, helping sellers reduce communication costs between multiple suppliers and achieve collaborative management across the entire warehousing, shipping, and return process.
Consumer returns do not mean the end of a product's value. What truly determines the final destination of a product is not the consumer, but the seller's return processing strategy.
When returned goods undergo timely local quality inspection, repackaging, and customized processing, they have the opportunity to re-enter the sales cycle and continue to create value. For cross-border sellers, establishing a professional and efficient U.S. return processing system can not only reduce disposal costs but also improve inventory utilization, giving each returned item more possibilities.
