Why Small E-Commerce Brands Should Rethink Their Return Strategy

By Stephen Thomas

The average return rate for ecommerce was 16.9% in 2024, according to a report by the National Retail Federation (NRF)

If you run a small e-commerce business—especially one that ships products from overseas—returns can feel like a nightmare.

I get it. You're juggling product sourcing, customer service, marketing, and order fulfillment. The last thing you want to think about is what happens when a customer in the U.S. wants to send something back. You’re probably thinking, “Ugh, that’s a headache. I’ll just refund them and move on.”

But here’s the thing: you’re losing money every time you do that.

Let’s Talk About the Real Cost of Returns

When a U.S. customer returns an item, most small brands either:

1. Don’t offer returns at all (which hurts trust), or

2. Offer a refund and let the customer keep the item (which hurts your wallet).

Neither option is great if you’re trying to build a long-term, sustainable business.

The cost of international return shipping is high—sometimes higher than the value of the item itself. So it makes sense that many small business owners avoid dealing with it altogether. But that means you’re not just refunding an order—you’re also losing the product, the shipping cost, and any chance of turning that return into a future sale.

For small brands, that adds up quickly.

What If You Could Keep the Product—and Your Profits?

Now imagine this instead:

• Your customer in New York wants to return an item.

• They ship it to a local U.S. return address.

• The item gets received, stored, and logged for you.

• A week later, another U.S. customer places a similar order.

• That exact item is pulled from your return inventory and shipped to the new customer in just a few days.

Suddenly, a return becomes an opportunity instead of a loss.

This Is What Reverse Logistics Can Do For You

I write about supply chains and logistics, but more importantly, I’ve spoken with a lot of small business owners who just need something that works. They don’t want to deal with big 3PL companies that require thousands of orders a month. They just want a simple system that helps them stop bleeding money on refunds and return shipping.

That’s where services like RepackPro come in.

Instead of making you commit to large volumes or confusing software, they let you start small—literally with just one return a month if that’s what you’ve got. You pay a monthly fee to access a U.S. return address and warehouse. When your customer sends something back, the warehouse logs it under your name, holds it, and ships it again when you’re ready.

No waste. No unnecessary refunds. Just a smarter system for the way you actually run your business.

Why This Matters for Small Brands

Here’s what you gain when you stop writing off every return:

• You retain inventory that can still be sold.

• You speed up delivery for your next U.S. customer (1–5 day shipping instead of 2+ weeks).

• You build trust by offering easier returns.

• You look bigger and more professional, even if you’re still growing.

Returns don’t have to be a loss. They can become part of a well-oiled machine that keeps customers happy and your cash flow stronger.

Final Thought

You’ve worked too hard to let returns eat away at your profit.

If you’re already offering amazing products, better logistics is the next step. And you don’t need to hire a team or rent a warehouse to get there—you just need the right partner.

Smaller brands like yours deserve smart solutions too. The kind that actually match the way you do business.