In the cross-border circle in 2024, the name of a platform frequently appeared on the screen - TEMU. As an important part of Pinduoduo's overseas strategy, TEMU has reached new heights in the US market. With the "full trusteeship" + "extreme cost-effectiveness" approach, TEMU not only quickly seized the market share of Amazon and Shein, but also captured a large number of "cheap" North American consumers.
Sales are booming and orders are growing - this is certainly a good thing for cross-border sellers. But along with it, there is another headache: the return rate is not low!
So, what is the return situation of TEMU in the United States? How should sellers deal with the growing pressure of returns? Is there an efficient, worry-free and reliable US return warehouse that can help solve it? This article will dismantle it for you one by one.
TEMU has developed rapidly in the United States, and the return volume is also rising simultaneously
Since TEMU officially landed in the United States in September 2022, it has launched an offensive in the North American market at lightning speed. The attractive strategy of low-priced hot products, free shipping and free returns made American consumers place orders crazily. According to foreign media data, TEMU ranked first in the US shopping app in terms of downloads for several consecutive months in 2023, and its GMV increased by more than 200% year-on-year.
But problems also followed - the high return rate became a common concern for platforms and sellers.
TEMU focuses on "extreme cost-effectiveness", and the platform supports 30-day unconditional returns. Many consumers choose to return products after impulse consumption. Industry data shows that the average return rate of TEMU in the US market is between 10% and 20%, and some categories (such as clothing, beauty, and 3C peripherals) are even as high as 30%.
In the "full trusteeship" model, the responsibility for returns is usually borne by the platform; but for merchants in the POP model (especially semi-trusteeship sellers), return processing, label change, secondary listing, and return to China still need to be handled by themselves. If there is a lack of local return warehouse support, these problems will undoubtedly become a "gold-eating beast" of profits.
Seller pain points: What are the difficulties in TEMU returns?
The common pain points of TEMU sellers are mainly concentrated in the following aspects:
Returns cannot be processed on site and need to be shipped back to China, which is costly and time-consuming;
The goods are directly scrapped without quality inspection, with low secondary sales rate and large losses;
There is no local warehouse to assist in relabeling/repackaging, which is easy to be judged as non-compliant;
The accumulation of returned items and the lack of clear processing procedures cause management chaos;
After the return, the inventory cannot be returned in time, affecting the replenishment plan.
Therefore, the solution is clear: there must be a reliable local return warehouse in the United States that can perform quality inspection, relabeling, return, and resale - the entire process is handled in one stop. U-Speed is such a "back-end brain".
U-Speed US return warehouse: A solid backing for TEMU sellers to return goods
✅ Multiple locations, covering the entire US market
U-Speed has three return warehouses in the United States:
New Jersey Warehouse in the East Coast of the United States: A total area of 212,000 square feet, with a daily processing capacity of 20,000+ orders;
Los Angeles Warehouse in the West Coast of the United States: After expansion, the area reaches 80,000 square feet, processing 10,000+ orders per day;
Miami Warehouse: 21,000 square feet, processing 2,500+ orders per day, radiating the southern and Latin American markets.
The three warehouses are equipped with professional facilities such as forklifts, light and heavy shelves, intelligent WMS systems, PDA terminals, 24-hour security monitoring, etc., providing the safest and most efficient processing environment for returned goods.
✅ Comprehensive services, truly one-stop solution to return problems
U-Speed not only has warehouses, but also has complete return processing capabilities, including:
Return quality inspection: professional quality inspection team, complete quality inspection + report upload within 48 hours, screen sellable products;
Re-labeling: non-compliant labels? Re-label! Help you quickly re-list and avoid being deducted by the platform;
Repackaging: lightly damaged products are repackaged and reused to increase the success rate of resale;
Return to China: unsalable/unsalable products can be returned to domestic warehouses in a unified manner to save inventory turnover costs;
Destruction service: local destruction and environmental compliance can be provided to avoid unnecessary international logistics consumption.
✅ Unique advantages, why is U-Speed more reliable?
Cooperation between Chinese and American teams: domestic return management team + local Chinese team in the United States, language barrier-free and more efficient execution;
Systematic management: independent WMS system, multi-platform API docking (TEMU, TikTok, SHEIN, etc.), support platform ordering, and real-time order status;
Quick return time: return quality inspection is completed within 2 days, and return logistics is delivered to the country within 3-5 days, with efficient turnover without delaying replenishment;
Full range of compatible categories: general goods, pure electric goods, and cosmetics are all supported to meet TEMU's diverse return needs;
Support drop shipping: In addition to returns, U-Speed also provides warehousing + drop shipping services to truly create a closed loop of cross-border supply chain.
TEMU return processing is no longer difficult, choosing the right warehouse is the key
TEMU's US market continues to heat up, but the return challenges hidden behind the hot sales cannot be ignored. For cross-border sellers, returns are not a hassle, but part of profit management. Choosing the right return warehouse and handling returned goods well are key steps to ensure long-term stability of the business.
U-Speed's US return warehouse exists to solve this pain point. From quality inspection to label change, from return to re-listing, we provide TEMU sellers with a truly "worry-free, money-saving, and time-saving" return solution. No worries if you have many returns; U-Speed makes returns simple and efficient.