As global e-commerce competition becomes increasingly fierce, Amazon US remains the preferred starting platform for new sellers. According to the latest research report from Marketplace Pulse, over 73% of newly registered sellers successfully completed their first transaction in the past 12 months, a significantly higher proportion than other major markets such as Germany (38%), the United Kingdom (32%) and Canada (16%).
In 2024, Amazon added more than 900,000 new sellers in 22 markets around the world, of which about one-third chose to open stores in the US. Despite increasingly complex platform rules and intensified competition, Amazon US still shows strong appeal. It is particularly noteworthy that despite the large number of new sellers each year, the number of active sellers has dropped from 2.4 million four years ago to less than 1.9 million, which means that the average traffic available to each seller has increased by more than 30%, providing more opportunities for new sellers.
In addition, Amazon's third-party seller sales are expected to reach US$325 billion in 2024, far exceeding competitors such as eBay and Walmart, further consolidating its dominant position in the US e-commerce market.
Return rates soar, sellers face new challenges
However, as sales grow, the problem of returns has become increasingly prominent. According to MyFBAPrep, the average return rate on the Amazon platform is between 5% and 15%, and some categories are even higher. On the Reddit forum, some sellers said that their average monthly return rate is between 6% and 12%, although they have tried their best to optimize product descriptions and pictures.
Amazon introduced a new return processing fee policy on June 1, 2024. Under the policy, sellers will be charged additional return processing fees for products with return rates higher than the benchmark for a specific category. Although clothing and footwear products are temporarily exempt from this fee, sellers in other categories also need to pay close attention to their return rates to avoid additional cost burdens.
In addition, some sellers have also found that only 3% to 5% of customers may account for most of the return orders, which not only increases operating costs, but may also affect the overall performance of the store, which makes sellers even more headache. Faced with increasingly severe return challenges, sellers need to find efficient and reliable return processing solutions.
U-Speed US return warehouse: A powerful assistant for sellers
U-Speed US return warehouse is not only a return service provider for the AliExpress platform, but also provides a full range of return processing services for cross-border sellers such as Amazon, independent stations, and eBay. By deploying four warehouses in the United States, with excellent return services and work efficiency, it helps cross-border sellers easily deal with return problems.
U-Speed US East (New Jersey) Return Warehouse: divided into two locations, with a total area of 212,000 square feet, with an average daily processing capacity of 20,000+.
U-Speed US West (Los Angeles) Return Warehouse: The area has been expanded to 80,000 square feet, with an average daily processing capacity of 10,000+.
U-Speed Miami Return Warehouse: The area is 21,000 square feet, with an average daily processing capacity of 2,500+.
It is worth mentioning that all warehouses are equipped with advanced hardware and software equipment, including forklifts, light and heavy shelves, fire monitoring systems, and 24-hour security and CCTV systems, providing a safe and reliable return processing environment for cross-border sellers.
More importantly, U-Speed's efficient return processing process can help cross-border sellers quickly handle return issues. It can complete return quality inspection within 2 days to ensure the rapid processing of returned goods; complete return logistics within 3-5 days to help sellers quickly restore inventory.
U-Speed's return service is led by the Chinese management team, operated by the local Chinese team in the United States, and supplemented by a professional customer service team to maximize the quality of service.
Provide one-stop cross-border logistics solutions
In addition to return services, U-Speed also provides first-leg transportation, warehousing, and drop shipping services to create a complete cross-border logistics service closed loop for sellers, reduce the complexity of docking with multiple suppliers, and accelerate the development of cross-border business.
On Amazon's US station, a platform full of opportunities, new sellers must not only seize sales opportunities, but also actively respond to the challenges brought by returns. Choosing a professional return processing service provider like U-Speed will help sellers reduce operating costs, improve customer satisfaction, and stand out in the fierce market competition.
