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How should cross-border sellers deal with returns?
2024-10-18

Recently, in order to better retain buyers, many leading cross-border e-commerce platforms have adjusted their return policies.


01. Platforms have launched return policies one after another


After Temu entered the Southeast Asian market and provided consumers with free shipping, 90-day free returns, and discounts

 of up to 90%, major cross-border e-commerce platforms have also adjusted their return policies.


Shopee announced that starting from September 19, some sites will gradually launch instant cancellation (Instant Cancellation)

 and in-transit return refund (In-transit RR) functions.


Recently, Amazon followed closely. According to eladelantado USA, from January 1, 2025, Amazon's return policy will undergo 

major changes, which may lead to further increases in the costs of third-party sellers.


According to reports, from January 1, 2025, Amazon will introduce a new fee for sellers with frequent returns. Sellers who have

 a large number of goods returned will need to pay a return processing fee. This new policy is Amazon's response to the increasingly

 serious reverse logistics problem. (Reverse logistics: the process of handling returns)


This policy is mainly aimed at third-party sellers who deliver by themselves and have a relatively high product return rate. 

(Products sold directly by Amazon and through FBA are not subject to this new fee.)


Objectively speaking, returns have almost become the new normal for cross-border sellers. Previously, eMarketer also predicted

 that the total amount of retail returns in the United States will reach 627.34 billion US dollars in 2023, and the number of returners

 is likely to grow to 113 million by 2026.


02. Consumers pay attention to after-sales experience


Returns have now become one of the new challenges faced by major cross-border sellers. Efficient after-sales service and reasonable

 return policies can help attract more consumers to place orders.


Previously, DTC e-commerce company ESW and cross-border e-commerce logistics service provider Asendia released a report that 

surveyed more than 18,000 consumers from 18 countries and regions. The report pointed out that consumers have higher and higher

 expectations for the after-sales experience of cross-border returns, and they have shown diversified needs.


Among many factors, the "free return" service has received widespread attention. In order to control costs and reduce the return rate, 

many retailers have begun to charge fees for returns. However, nearly half of consumers said that this practice would affect their purchasing

 decisions. Consumers in the UK, Germany and Switzerland are particularly determined to this, with only 15% of respondents willing to pay

 membership fees that include free returns.


Another survey released by Happy Returns also came to a similar conclusion. In 2023, 81% of American online shoppers will first check the

 return policy of a new e-commerce platform when they first visit it. At the same time, 55% of American online shoppers said that if the

 e-commerce platform does not provide a convenient return option, they will choose to give up the purchase.


03. How can sellers save themselves


In fact, the "refund only" policy that has been introduced in the domestic e-commerce market for a long time has also made sellers anxious. 

Over the years, there have indeed been refund-only and price comparison systems that have been abused by "wool parties", resulting in a large

 number of unreasonable refund applications being approved. What's more, some people use the refund-only rule to make malicious refunds 

and profit from it.


In overseas businesses with longer links and higher costs, the return rate has always been a pain point for overseas sellers. The free return policy

 of online retailers can help stimulate consumers to place orders, but the return cost needs to be paid by the platform and the seller. The key is 

how to find a better balance.


U-Speed currently focuses on reverse logistics services, providing return services in 24 countries around the world for cross-border e-commerce 

sellers. It provides professional and customized cross-border reverse logistics services for cross-border e-commerce platforms and independent 

station sellers such as Amazon, eBay, AliExpress, Temu, Tiktok, Shein, etc.


It provides one-stop global overseas warehouse return services such as multi-platform return and exchange reception, return quality inspection,

 repair and renovation, labeling and re-listing, local transfer warehouse, local warehousing, destruction, and return to China. With the goal of solving

 the problem of after-sales returns for merchants abroad, it helps Chinese merchants and platforms provide more complete after-sales services,

 improve consumer satisfaction, and reduce merchants' after-sales costs.


For sellers who need return shipping services, professional return shipping services are far more cost-effective than direct overseas warehouse services,

 whether in terms of return shipping price, warehouse operation time efficiency, or customized services.