International returns surge as e-commerce merchants face rising logistics hurdles

International shipping partners ePost Global and ShipWise are expanding their cross-border returns capabilities as merchants face rising international return rates, stricter customs rules and growing volatility in global e-commerce logistics.

The companies said merchants can now manage international returns alongside outbound domestic and global shipments through the ShipWise platform, giving retailers a single system for both forward and reverse logistics.

The expanded support is aimed at helping e-commerce merchants handle cross-border returns more efficiently while navigating increasingly complex customs regulations and data requirements. “Returns have become a real operational risk,” said Helaine Rich, vice president of strategic sales and administration at ePost Global.

“When regulations change or carriers fail, merchants feel the impact immediately. Our role is to absorb that volatility so returns and delivery remain predictable.” Cypress, California-based ePost Global is a technology enabled global shipping solutions provider. The company has facilities in Chicago, New Jersey, Miami and Los Angeles.

Cross-border returns growing more complex Reverse logistics has become a growing challenge for global e-commerce merchants as international online shopping expands. Return rates are rising globally while customs compliance requirements and carrier reliability issues add new layers of complexity to moving returned goods across borders.

The global reverse logistics market is projected to reach roughly $936 billion in 2026, according to Global Market Insights. Industry estimates suggest that 20% to 30% of online purchases are returned, far higher than the roughly 8% to 10% return rate in brick-and-mortar retail. In the U. S.

alone, consumers returned nearly $890 billion worth of merchandise in 2024, highlighting the growing operational burden reverse logistics places on retailers and logistics providers. Rich said many merchants underestimate the regulatory hurdles involved in cross-border returns.

“One of the main things is that they have to understand what the commodities are,” Rich said. “Certain items can be exported from the U. S. , but they may be restricted from coming back into the United States depending on regulations.” Companies also must ensure documentation matches the original export records when items return to the U. S. , she said.

“Everything has to be very clean and accurate when it’s being exported so that when there’s that cross-reference, what was declared going in is what’s declared coming out,” Rich said. Growing scrutiny from customs authorities has also increased compliance risks for merchants. “The requirements are becoming more and more,” Rich said.

“That’s why it’s important we capture the right data and stay on top of regulatory changes to minimize disruptions.” Canada emerges as key cross-border returns corridor The companies highlighted Canada as one of the most challenging international returns markets due to regulatory requirements and fluctuating carrier conditions.

Canada has also become an extension of the U. S. e-commerce market, Wade Ransom, business development executive at ShipWise, said. Portland, Oregon-based ShipWise is a global provider of web-based, on-premises, and API-driven shipping solutions for the e-commerce and 3PL industries.

“You’re seeing Canada as an extension of the United States for brands,” Ransom said. “Consumers buying there expect returns just like they would domestically.” That expectation puts pressure on merchants to offer seamless returns even when international shipping is involved. “They want the same experience they get domestically,” Ransom said.

“Operationally, merchants have to figure out how they can ship internationally and still make returns easy for the consumer.”

Integrating outbound shipping and returns The partnership integrates ePost Global’s international carrier network and customs expertise with ShipWise’s shipping platform used by e-commerce companies and third-party logistics providers.

The integration allows merchants to generate return authorizations and shipping documentation using the same data originally used for outbound shipments. “It’s actually a phenomenal advantage because all of the data is already in the system,” Rich said. “They’re not trying to move data between two different platforms.”

Ransom said consolidating shipping and returns into one system simplifies operations for merchants managing global e-commerce logistics. “We want to make the international returns process just as easy as printing an outbound label,” Ransom said. The system can also automate customs documentation and shipping requirements before a parcel leaves a warehouse.

“We want to automate the end-to-end workflow so the system tells the shipper what information is needed before a package moves,” Ransom said. Data requirements shaping the future of cross-border shipping Both companies said rising regulatory scrutiny and stricter customs data requi