Cahoot vs Veeqo: A Value-Driven Comparison for Modern Ecommerce Sellers

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When ecommerce sellers start scaling across marketplaces like Amazon, eBay, Walmart, and Shopify, their shipping software can either accelerate that growth or slow them down. Two platforms built to handle multi-channel shipping are Veeqo and Cahoot. Both offer discounted shipping labels and order management tools, but the similarities end there. This in-depth comparison will explore what each software delivers, what it lacks, and which one ultimately supports fast-moving ecommerce teams better.

At a Glance: Cahoot vs Veeqo

Feature
Cahoot
Veeqo
Multi-Channel Order Import
Yes
Yes
Discounted Carrier Rates
Yes
Yes
Rate Shopping Across Carriers
Yes
(Autonomous)
Yes
(Basic)
Bulk Label Printing
Yes
(Autonomous)
Yes
(Traditional)
Support for Own Carrier Accounts
Yes
Yes
Automation Rules & Order Routing
Yes
(Highly Configurable)
Limited to Presets
Intelligent Package Selection (Cartonization)
Yes (AI-powered)
No
WMS Features
Yes
Partial
Inventory Visibility
Yes
(real-time)
Yes
(limited granularity)
Returns Workflow Integration
Optional Peer-to-Peer Returns
Basic RMA
Live Customer Support
Yes
(Help Desk, Phone)
No phone support
Amazon Buy Shipping API Certified
Yes
Yes
Supports Amazon SFP
Yes
No
Open to 3PLs
Yes
No

Pricing Models & Carrier Rates

Both Cahoot and Veeqo offer access to discounted shipping rates from major carriers like UPS, FedEx, and USPS. Veeqo highlights its access to Amazon-negotiated carrier rates, especially beneficial for FBM sellers. However, it’s worth noting that Cahoot also offers deeply discounted rates through its aggregated carrier network, and unlike Veeqo, sellers aren’t required to be Amazon merchants to access them.

Users have praised Veeqo’s rates in particular, though some feel that the real-world savings depend on volume and location. One user on Trustpilot noted, “Veeqo offers good rates, but it doesn’t always beat what I negotiated directly with FedEx.” That said, having an option for both Veeqo and using your own account provides flexibility.

Cahoot lets sellers compare real-time rates across carriers, or even better: automate all the rate shipping and bulk shipping label generation based on the desired logic (cheapest, fastest, delivery promise, signature-required, etc.). This level of autonomous support (removing the human) goes a step further than Veeqo’s more manual workflows.

Order Routing & Workflow Automation

This is where the gap between the two platforms widens. Cahoot excels at automation.

Cahoot’s rule engine lets sellers automatically assign orders to specific warehouses, select packaging based on product dimensions, and pick carriers based on dynamic rules. It includes AI-powered cartonization, reducing overpackaging and optimizing label selection at scale. This feature alone can save high-volume shippers thousands per month.

Veeqo supports some automation, but according to multiple reviews, the rules engine lacks flexibility. As one user put it: “You can automate some parts of the shipping process, but complex routing logic just isn’t possible.” Another noted on G2, “Our warehouse team constantly has to manually override presets in Veeqo to get the right shipping option.”

Cahoot also offers the option to import product master data, assign SKUs to multiple warehouses, and automate routing for distributed fulfillment. These features are especially helpful for sellers managing multiple sales channels and warehouse locations.

Multi-Channel Capabilities

Both platforms support multi-channel order import from Amazon, eBay, Shopify, Walmart, Etsy, and more. Veeqo is tightly integrated with Amazon (it’s owned by Amazon), which brings advantages for FBM sellers, like access to Buy Shipping and automated order syncing.

However, some sellers note that Veeqo prioritizes Amazon workflows and that the support for non-Amazon channels lacks depth. A Trustpilot reviewer stated, “It’s clearly built with Amazon in mind. Shopify orders don’t always sync correctly, and the custom mapping is limited.”

Cahoot offers native integrations with all major ecommerce platforms, with equal priority across sales channels. That neutrality is useful for brands expanding beyond Amazon and looking to centralize operations across multiple storefronts.

It also means Cahoot isn’t limited by Amazon policy shifts or ecosystem changes. For businesses hoping to grow a multi-platform brand, that independence matters.

Inventory & Warehouse Management

Veeqo includes basic inventory tracking tools but doesn’t offer a full warehouse management system (WMS). Its UI shows available stock and syncs between platforms, but lacks pick/pack workflows, barcode scanning, and location-based inventory management.

Cahoot includes WMS features as part of the platform, with no need for third-party plugins. Sellers can assign bin locations, manage cycle counts, and generate pick lists automatically. One Cahoot user shared, “We reduced picking errors by 60% after switching from ShipStation to Cahoot because the WMS features are built in.”

For growing brands with even modest warehouse operations, this difference is key. It consolidates tech stack complexity and reduces reliance on disconnected tools.

Support & Learning Curve

Cahoot provides live onboarding, in-platform chat, and phone support. Multiple users note how responsive the support team is. One review on G2 says, “Every time I had an issue, Cahoot got back to me within minutes. I never felt like I was waiting around.”

Veeqo, on the other hand, has no phone support, and several users on Trustpilot and Reddit cite frustrating support delays. One review read, “You submit a ticket and wait… sometimes for days. It’s not great when your entire shipping flow is paused.”

Veeqo also has a steeper learning curve for non-Amazon users. The dashboard is robust but not intuitive for sellers focused on Shopify or direct-to-consumer models.

Amazon Buy Shipping & SFP

Both platforms are certified for Amazon Buy Shipping, meaning they help sellers remain compliant with Amazon’s policies and tracking requirements. However, only Cahoot supports Seller Fulfilled Prime (SFP).

For Amazon SFP sellers, this is a major differentiator. Cahoot’s compliance engine ensures same-day label printing, cut-off time enforcement, and late-delivery prevention. Veeqo does not support this, which rules it out for many brands trying to maintain the Prime badge.

Data You Can Actually Use

With Veeqo, many sellers are flying blind. Sales data is fragmented. Shipping costs aren’t always transparent. And pulling that data often means wrangling spreadsheets with missing headers or running into failed exports.

Cahoot makes it easy to analyze profits, understand shipping costs, and track eligible shipments in one dashboard. You get full access to real performance data without needing to bounce between platforms.

Built for Amazon Sellers, but Not Owned by Amazon

Veeqo is owned by Amazon. That means anything you do on the Amazon platform is potentially visible. For Amazon sellers trying to protect their strategy or operate across other channels, that’s a problem.

Cahoot is fully compatible with Amazon FBM, FBA, and Buy Shipping, but stays independent. You get the lowest rates available, without locking yourself in deeper with Amazon or giving up your leverage.

Pros & Cons

Veeqo Pros:
  • Owned by Amazon, with tight FBM integrations
  • Free to use (zero software cost)
  • Access to Amazon-negotiated carrier rates
  • Clean UI for basic shipping workflows
  • Veeqo Cons:
  • Limited automation rules engine
  • Inability to export meaningful data to inform decisions
  • No support for SFP
  • No phone support
  • Lack of cartonization or packaging optimization
  • No built-in WMS features
  • Support delays are frequently cited in reviews (think: Amazon-like Support)
  • Cahoot Pros:
  • Advanced shipping automation and AI-powered cartonization
  • Built-in WMS with pick/pack/scan tools
  • Full Help Desk and phone support with fast response times
  • Channel-agnostic approach supports real multi-platform growth
  • Fully supports Amazon SFP
  • Highly configurable rules engine for complex workflows
  • Cahoot Cons:
  • Not free (pricing is customized based on volume)
  • Currently optimized for the U.S. market only (international support expanding)
  • Cahoot vs. Veeqo: What Sellers Are Saying

    “Using Veeqo costed us so much time. Exports kept failing, inventory didn’t match, and the UI was just confusing. Cahoot gave us back control.”

    ~ Multichannel seller, apparel industry

    Speak to a fulfillment expert



    “The only reason I stuck with Veeqo was because it was free. But once our shipping volume increased, we needed more, and Cahoot delivered.”

    ~ Electronics brand owner

    Speak to a fulfillment expert



    Final Verdict

    Veeqo is a solid, free tool for Amazon-first sellers who want to print shipping labels and access decent rates with minimal setup. But it lacks depth in automation, support, and warehouse operations.

    Cahoot, by contrast, is built for scale. It’s ideal for ecommerce brands that are serious about operational efficiency and growth. From smart automation to robust warehouse tools and superior customer support, Cahoot is the better long-term investment for sellers looking to streamline operations across multiple platforms.

    If you’re running a high-volume ecommerce business that ships across multiple sales channels, handles inventory in multiple locations, or simply wants to reduce costs and errors at scale, Cahoot is the clear winner.

    Don’t settle for free if it slows your business down.

    Choose smarter. Explore how Cahoot can simplify your shipping and scale with your brand.

    Frequently Asked Questions

    Is Veeqo really free, and what’s the catch?

    Yes, Veeqo is technically free, but many sellers report that key features like bulk shipping, inventory management, and reporting are limited. You may still need your own carrier accounts, and support can be slow.

    How does Cahoot’s shipping software help reduce shipping costs?

    Cahoot gives sellers access to discounted rates across major carriers like UPS, FedEx, and USPS, with no Veeqo credits or software bugs required. Plus, bulk shipping tools and data-driven insights help optimize your entire shipping process.

    Can I use Cahoot if I sell on Amazon and other ecommerce channels?

    Absolutely. Cahoot supports multiple sales channels, including Amazon, Walmart, eBay, and Shopify, while keeping inventory levels synced across all platforms. Unlike Veeqo’s integration, Cahoot’s system is fast, clean, and flexible.

    What makes Cahoot better for inventory management than Veeqo?

    Cahoot simplifies multi-channel inventory with real-time stock tracking, automated syncing, and alerts to prevent overselling. Veeqo users often struggle with managing inventory across platforms due to sync lags and poor data visibility.

    Why do sellers leave Veeqo for Cahoot?

    Many sellers switch when they realize Veeqo’s free model comes with trade-offs: limited support, Amazon ownership, clunky UI, and frustrating data export issues. Cahoot offers a full-featured, seller-first solution that saves time and drives smarter decisions.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Turn Returns Into New Revenue

    Convert returns into second-chance sales and new customers, right from your store

    Peer-to-Peer Returns Platform: How It Benefits Emerging DTC Brands

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    Returns are the terrible, horrible, no good, very bad part of running an ecommerce business. Not just for shoppers (waiting around for a refund) but for emerging ecommerce brands, especially DTC operations. Every return cuts into profit, eats up time, and piles up inventory no one wants to touch. But here’s the twist: what if returns didn’t go back to the warehouse at all? What if they went directly to a new buyer instead? That’s the magic behind the peer-to-peer returns platform. This model introduces key advantages for DTC brands, such as reducing costs, minimizing waste, and improving customer satisfaction.

    Cahoot, known for shaking up ecommerce logistics, is leading the charge with this innovative approach in the peer-to-peer returns space. And no, it’s not a borrowing scheme like peer-to-peer lending or a financial product like personal loans. But it does borrow some DNA from those systems, distributed networks, smart matching, and skipping the middleman. Online platforms in the peer-to-peer space facilitate these direct connections, much like how they connect borrowers and lenders in financial contexts, streamlining the process for all parties involved. Think of it as the social lending of ecommerce returns, where the system connects returners directly with new buyers, just as peer-to-peer platforms connect borrowers directly with lenders.

    The Real Pain of Traditional Returns

    Traditional returns work like this: a customer changes their mind, prints a label, ships the item back to you, and then you have to receive, inspect, restock, maybe repackage, and eventually resell it, often at a steep discount. Add in return shipping costs, warehouse labor, customer service tickets, and even potential late fees for delayed processing, and it’s a recipe for negative ROI.

    For a small ecommerce business or a founder running lean, this isn’t sustainable. Shipping every return back to your warehouse is like using a bank account with constant fees and zero interest. It drains your cash flow. You could compare it to funding loans with higher risk and low return, much like the challenges faced with traditional loans when penalties and late fees add up. Frankly, it’s a bad deal.

    Enter Peer-to-Peer Returns

    Instead of sending the returned item to your fulfillment center, Cahoot’s peer-to-peer returns platform lets the original customer ship it directly to a new buyer. Here’s how it plays out:

    1. A customer initiates a return.

    2. The platform asks them to upload photos, confirm the condition, and hold the item for a few days.

    3. AI kicks in, verifying the item’s resale quality, analyzing the returner’s history, and scanning for fraud (risk management). The platform’s technology enables streamlined processes, making the entire experience faster and more user-friendly.

    4. Meanwhile, the item is automatically relisted on your store as open-box in real-time, discounted slightly, but still your branded product. The relisting and resale process is transparent and clear, much like how peer-to-peer lending platforms provide comparable loan terms, so both buyers and sellers know exactly what to expect.

    5. When a new customer buys it, the returner gets a label to ship it out directly.

    6. They’re refunded once tracking confirms it’s on the way or received. In terms of risk management, the risk of a single failed return transaction can be compared to a single default event in lending, highlighting the importance of robust verification and diversification strategies.

    Now, instead of a refund eating your margins, you’re reselling the item at 85–95% of retail, skipping warehouse handling and double shipping. It’s fast. It’s efficient. And yes, it saves money.

    Why This Works (Especially for Small Businesses)

    This isn’t just a fun gimmick. Cahoot’s peer model addresses real ecommerce challenges:

    • Shipping Costs: You skip the return leg to the warehouse.
    • Inventory Management: The item never clogs up your system.
    • Speed: New customers get the item faster. Returners get refunded sooner.
    • Customer Satisfaction: Everyone feels good helping the planet and their wallet.

    For small businesses, this model is similar to how small business loans and business loans provide alternative financing options to cover major expenses, supporting growth and development when traditional funding is limited.

    It’s like a micro version of peer lending. Instead of funding loans with capital, you’re moving product through customer participation. Instead of worrying about borrower defaults, you’re focused on buyer satisfaction and ensuring compliance through verified transactions. The platform also helps brands achieve their financial goals by offering accessible and flexible solutions. Other benefits of the peer-to-peer returns model include improved business insights, better payment terms, and fostering a supportive community for both buyers and sellers.

    The Financial Angle

    Okay, let’s talk money. The traditional return process? It’s basically like investing in traditional savings accounts, low return, high friction. With peer-to-peer returns, you’re now in the world of alternative investments. You’re getting more value, faster turnover, and lower risk.

    Just as peer-to-peer (P2P lending) platforms allow individual and institutional investors to invest in loans, with returns shaped by interest rates and regular interest payments, our model lets you realize value more efficiently. On lending platforms and lending sites, loan offers are determined by factors like minimum credit score, good credit, and the borrower’s profile, much like how our platform assesses transaction eligibility and risk.

    Your effective recovery rate improves. That espresso machine that used to cost you $50 to restock and repackage? Now it’s resold in 72 hours at 90% retail with no warehouse touch. That’s the kind of turnaround most lending sites or lending platforms would kill for.

    Built-In Risk Management

    Cahoot doesn’t wing it. Our P2P returns platform is built with risk tolerance settings, fraud detection layers, and condition verification, all using AI. That means you’re not just trusting your customers blindly. These tools empower brands to make informed decisions about approving returns and managing risk.

    It’s like when institutional investors assess borrower defaults, they don’t rely on vibes. They crunch data, assess credit risk, and build safeguards. Cahoot’s doing the same for your returns: historical data, photo analysis, shipping trends, and user history all factor into who gets approved for peer-to-peer returns.

    Customer Experience

    Customers like this model. It’s interactive. It feels more personal. They get to feel like part of a sustainability loop. It’s like when borrowers connect with individual lenders on lending platforms, there’s emotional value. A product gets rehomed instead of returned to some faceless warehouse.

    Returners are rewarded with small credits or perks for participating. Buyers get a deal. You recover more revenue. And the planet breathes a little easier. That’s what we call attractive returns.

    Wrapping It Up

    Peer-to-peer returns aren’t just a clever workaround; they’re a full-on rethinking of ecommerce reverse logistics. For small business owners, they offer a practical way to save money, improve customer satisfaction, and align with sustainability goals. For larger brands, they unlock serious cost savings and scalability.

    So, whether you’re selling sneakers, smart home gear, or skincare, if returns are eating your margins, it might be time to make a move.

    Because unlike traditional financial institutions, this isn’t built on bureaucracy. It’s built on agility, innovation, and a willingness to rethink the rules. Sound familiar?

    That’s ecommerce done smarter.

    Frequently Asked Questions

    What is a peer-to-peer returns platform, and how does it work?

    A peer-to-peer returns platform connects the original buyer of a product with a new customer who wants to purchase it, avoiding the need to ship the item back to the brand’s warehouse. Instead of returning it to a traditional logistics hub, the returner ships the item directly to the next buyer. This innovative approach reduces return costs, speeds up resale, and supports sustainability goals for small businesses.

    How is a peer-to-peer returns model different from traditional returns?

    Traditional returns involve sending the product back to a brand or warehouse, where it’s inspected, restocked, and resold. A peer-to-peer system skips that step. The original buyer holds the item temporarily while the platform finds a new buyer. Once sold, the item ships directly to the new customer, eliminating an entire shipping leg and creating a more efficient, cost-saving process similar to how peer-to-peer lending eliminates middlemen in finance.

    Are peer-to-peer returns safe for ecommerce businesses and customers?

    Yes. Platforms like Cahoot use advanced fraud detection, data analytics, and AI verification to ensure the returned item matches quality standards before resale. Buyers can review photos, condition grades, and return policies. Just like in peer lending, where borrower defaults are managed through credit checks and risk scoring, P2P returns include safeguards to protect both original and new customers.

    What types of ecommerce brands benefit most from peer-to-peer returns?

    Virtually any ecommerce brand can benefit from peer-to-peer returns as long as the products aren’t perishable, dangerous (hazmat), or otherwise require a tighter level of control (contamination concerns). From emerging DTC brands and small businesses to large enterprises, companies offering fast-moving consumer goods see the biggest gains. Peer-to-peer returns help reduce operating costs, improve cash flow, and increase customer satisfaction, especially for businesses without access to traditional loans, large warehouses, or institutional investor backing.

    How can I start using a peer-to-peer returns platform?

    To get started, ecommerce sellers can partner with a platform like Cahoot that offers peer-to-peer returns as part of its fulfillment solution. The platform handles the tech, including photo-based grading, shipping logistics, and fraud prevention. It’s as simple as integrating the system, setting product eligibility rules, and letting the platform connect returns with new buyers, streamlining processes, and unlocking attractive returns on previously lost sales.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Turn Returns Into New Revenue

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    How AI-Powered Cahoot Returns Management Reduces Ecommerce Fraud

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    Fraudulent returns and refund abuse are eating into ecommerce profits like termites in a timber shack. We’re not just talking about a few bad actors. This is a systemic issue. Every time someone pulls a fast one, returning a used dress, faking a receipt, or claiming a package never arrived, ecommerce businesses bleed money. But here’s the good news: AI is finally catching up.

    Businesses that implement AI-powered fraud detection tools gain a competitive advantage in the ecommerce space, reducing losses and improving operational efficiency.

    This article explores how AI-powered returns management is giving merchants the upper hand, using machine learning and advanced fraud detection tools to sniff out shady behavior while keeping the experience smooth for legitimate customers. The tech is here, it’s learning fast, and it’s reshaping how we handle ecommerce returns.

    The Real Cost of Returns Fraud

    Returns fraud isn’t just annoying, it’s financially devastating. Think about:

    • Wardrobing: Wear once, return as “new”.
    • Switch fraud: Return a knockoff and keep the real thing.
    • Empty box scams: Return a box with no item inside, claim it’s there.
    • Refund fraud: Claim the item never arrived, even when it did.

    Customers exploit return policies by making false claims about product defects or delivery issues, manipulating the system for personal gain. Fraudulent return activities also include stolen merchandise returns and targeting high-value items such as luxury goods.

    All of these fall under fraudulent returns and refund fraud, and they’re on the rise. According to the National Retail Federation, ecommerce losses from return abuse now top tens of billions of dollars annually.

    AI analyzes return data and return patterns to identify patterns and fraud patterns in return transactions, helping businesses detect and prevent evolving forms of return fraud.

    The old methods, manual checks, strict return policies, and restocking fees, aren’t cutting it anymore. They hurt genuine customers and barely scratch the surface of sophisticated scams. That’s where AI fraud detection for ecommerce returns steps in.

    How AI Detects Fraud in the Returns Process

    AI-powered returns management combines machine learning algorithms, transaction data, returns data, and customer behavior to spot bad actors before they strike. AI-powered systems are designed to prevent fraud throughout the returns process. Here’s how:

    1. Photo Verification & Image Recognition

    AI can evaluate customer-submitted images of returned items to:

    • Detect box fraud or item switching.
    • Compare the product’s appearance to a verified new version.
    • Identify wear, missing parts, or damage that contradicts the return reason.

    This allows brands to detect fraudulent activity before it’s even shipped back.

    2. Pattern & Anomaly Detection

    Machine learning excels at spotting unusual patterns in behavior:

    • Return frequency: Has the customer returned too many high-value items?
    • Geolocation: Is the return request coming from a region known for return scams?
    • Purchase timing: Did they buy during a sale and return right after peak season?

    These patterns raise fraud risks and trigger review or denial workflows.

    3. Cross-Platform and Channel Monitoring

    AI systems can check across multiple returns and ecommerce channels, identifying if a return was initiated:

    • For the same item on multiple platforms.
    • Using fake receipts.
    • From a buyer who already claimed store credit somewhere else.

    AI can also monitor for account takeover attempts by detecting unusual account activities, such as frequent address changes, excessive returns, or high-value purchases. When suspicious account activity is detected, AI can recommend enabling multi-factor authentication to add an extra layer of security and prevent unauthorized access.

    This multi-touch intelligence is a game-changer for fraud prevention goals.

    4. NLP for Reason Analysis

    Natural language processing (NLP) can analyze written return reasons and flag:

    • Repeated use of vague claims like “defective”.
    • Scripted language that suggests fraud rings.

    It’s subtle, but over time, it sharpens fraud detection and helps businesses adapt.

    5. Smart Risk Scoring

    With returns management systems like Cahoot, each return is assigned a fraud risk score based on:

    • Customer history
    • Returns data
    • Known red flags like frequent returns, high-value items, high-risk transactions, or mismatched shipping info

    High-risk returns may trigger:

    • Photo verification
    • Manual review
    • Limited refunds (e.g., store credit only)

    How Cahoot Uses AI to Catch Return Fraud Before It Hits Your Warehouse

    Here’s the short version: Cahoot’s AI-powered returns system sniffs out sketchy returns before they even hit your dock. No detective hats or magnifying glasses required. It’s proactive fraud prevention baked right into the returns process, built for ecommerce teams who don’t have time (or money) to waste on refund fraud and box scams.

    Here’s how it plays out in real life: a customer clicks “return,” and instead of handing them a prepaid label like candy at a parade, Cahoot asks for photos. Item, packaging, maybe even the serial number. That’s when the AI kicks in, checking everything against the original order. Does the item match what was sold? Is the box suspiciously light? Are they trying to return a broken knockoff instead of the actual product? The system flags anything that smells off. No human has to squint at a blurry JPEG; AI’s doing the heavy lifting.

    And if things look really fishy? Cahoot assigns a fraud risk score based on the customer’s history, return frequency, location, and transaction data. Say this person’s been sending back a lot of high-value items or triggering patterns tied to refund fraud, Cahoot might put the brakes on the refund, sending it to manual review or straight-up denying it. It’s like having a savvy fraud analyst on call, 24/7, who doesn’t need coffee breaks.

    But that’s not all, it gets sharper with every return. The system learns what fraud looks like. Maybe it flags addresses linked to repeat offenders. Maybe it notices “this person always returns luxury goods two days before the return window closes.” The more it sees, the smarter it gets. Over time, it recommends policy tweaks that actually make sense, like tightening windows for excessive returns or requiring restocking fees on high-risk items.

    Cahoot also checks serial numbers in real time. That means box fraud, where someone swaps the product and sends back a decoy, gets stopped cold. If the serial number doesn’t match what was sold? Game over. No refund. No restock. Just one more fake return that never made it through the door.

    All of this happens quietly in the background, streamlining the returns process for good customers while catching the bad ones red-handed. That’s the beauty of machine learning in ecommerce returns: it doesn’t just react, it predicts. And when refund fraud can bleed your margins dry faster than a flash sale, that kind of protection isn’t just nice to have, it’s essential.

    Cahoot’s AI isn’t trying to micromanage your returns team; it’s giving them superpowers. So your operations run leaner, your legit customers stay happy, and your profits stay where they belong. In your pocket.

    How AI Preserves Customer Trust

    One of the trickiest parts of returns fraud is not alienating loyal customers. Efficient returns processes powered by AI improve customer satisfaction by reducing friction and delays. A good AI doesn’t just block fraud, it enables a positive customer experience by:

    • Fast-tracking legitimate customers
    • Preventing false positives through layered detection
    • Using customer verification sparingly and intelligently

    In short, it finds the right balance between fraud prevention and a frictionless returns process.

    Behind the Scenes: What AI Actually Looks At

    This isn’t black magic, it’s smart automation trained on mountains of data:

    • Historical data: Past behaviors of repeat offenders and loyal shoppers
    • Data points: Shipping speed, order value, return time frame
    • Customer data: Addresses, accounts, payment histories
    • Delivery tracking: GPS drops vs. “item not received” claims

    Together, these inputs help detect fraud across a spectrum, from empty box fraud to money laundering via returns.

    The Business Benefits

    When ecommerce companies implement AI-powered returns management, they see results fast. These benefits contribute to the long-term success of ecommerce businesses:

    ✔ Reduced Operational Costs

    • Less need for manual review
    • Faster returns management process

    ✔ Improved Customer Loyalty

    • Quicker refunds for genuine customers
    • Confidence that return policies are fair

    ✔ Higher Margins

    • Fewer fraudulent returns and chargebacks
    • More high-value items are resold instead of being written off

    ✔ Smarter Policy Decisions

    • AI insights guide better rules
    • Target return abuse without punishing everyone

    It’s a full-circle win for ecommerce businesses who want to scale securely.

    Final Thoughts: AI Is the Future of Fraud Prevention

    Return fraud is constantly evolving. So are the tools to fight it. By leveraging AI and machine learning in the returns management space, sellers are turning what used to be a liability into a competitive edge.

    With platforms like Cahoot, advanced technology no longer belongs only to the big guys. Even mid-size online stores can now fight receipt fraud, friendly fraud, and return scams with precision.

    So next time someone tries to game the system with a personal gain hustle, just remember: AI sees all. And it doesn’t blink.

    Frequently Asked Questions

    How does AI detect fraudulent returns in ecommerce?

    AI fraud detection for ecommerce returns works by analyzing returns data, customer behavior, and product images to identify suspicious patterns. It can flag issues like empty box fraud, receipt fraud, or mismatched serial numbers by comparing return requests against historical transaction data and trained machine learning algorithms.

    What is the difference between return abuse and friendly fraud?

    Return abuse often involves intentional schemes like wardrobing or box switching for personal gain, while friendly fraud includes tactics like claiming an item was never received to get a refund. Both forms of fraudulent activity are increasing in ecommerce returns, and AI-powered systems help detect these behaviors quickly.

    Can AI-powered returns management improve customer satisfaction?

    Yes. By separating legitimate customers from bad actors, AI-powered returns management allows genuine customers to experience faster processing, easier refunds, and less hassle, while fraudsters face more scrutiny. This helps maintain customer loyalty, customer trust, and a positive customer experience.

    What types of ecommerce return fraud does AI help prevent?

    AI helps identify and prevent a range of fraud types, including stolen merchandise returns, false claims, empty box fraud, refund fraud, and return scams. It uses data points like return frequency, image analysis, and customer history to flag high-risk transactions for further review.

    Why is AI better than traditional fraud prevention methods?

    Unlike manual reviews or blanket return policies that can frustrate loyal customers, AI fraud detection tools use advanced technology to spot fraud patterns in real-time. This results in lower operational costs, stronger fraud defenses, and better long-term success for ecommerce businesses.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Strategies to Mitigate FedEx and UPS Surcharges 2025

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    Let’s not sugarcoat it. The 2025 UPS and FedEx surcharges are hitting hard, and if you run an ecommerce business, you’re likely already feeling it in your margins. These aren’t just petty rate hikes; we’re talking residential delivery fees, large package surcharges, and peak season multipliers that could straight-up wreck your bottom line if left unchecked. New surcharges and additional fees can quietly inflate costs for ecommerce businesses if not monitored closely.

    So what do we do? Panic? Raise prices? Light a candle? Nah. Let’s talk smart ecommerce shipping strategy. This article will help you identify and address these additional fees before they quietly eat into your profits.

    Why Are These Surcharges Getting Worse?

    Simple: higher costs for carriers, inflation, delivery network strain, and the never-ending Amazon arms race. Carriers know ecommerce businesses rely on them, and they’re capitalizing on that reliance with complex, hard-to-negotiate fees. To increase revenue, carriers are introducing new surcharges and modifying their pricing structure, resulting in additional revenue streams that shippers must monitor closely.

    It used to be seasonal. Now it’s structural. UPS recently added a higher “Additional Handling” fee for packages over 30 pounds, and FedEx followed suit with new zone-based surcharges on bulky items. These changes are part of the evolving UPS surcharges landscape, reflecting how carriers are using new fees and pricing structure adjustments to drive revenue. If your business ships large packages (think fitness gear, small furniture, or bundled orders), you’re in the crosshairs.

    What This Means for Your Ecommerce Operation

    These aren’t line items you can just absorb. Surcharges and fees affect not just shipping costs but also other aspects of your business, including a new 2 percent payment processing fee on most charges. If you’re not actively working to reduce shipping costs with UPS and FedEx, you’re leaving money on the table, or worse, eating it. That “free shipping” promise starts to feel like a bad joke.

    Changes in shipping rates and surcharges can significantly impact shippers’ bottom lines. This is where shipping strategy becomes a profit lever.

    1. Know Your Surcharge Triggers

    First up: audit your shipments. Where are the fees coming from?

    • Oversize or large package fees? (Services affected: typically ground and express shipments)
    • Residential delivery? (Services affected: home delivery and residential ground services)
    • Peak delivery windows? (Services affected: all expedited and time-definite services)
    • ZIP codes with higher fees (“extended area surcharge”)? (Services affected: rural and remote area deliveries; charges subject: extended area surcharges)

    Understanding which charges are subject to surcharges for each package shipped is crucial for controlling shipping costs and optimizing your logistics strategy.

    Use this data to model scenarios: “What happens if I split shipments differently? Consolidate? Change carriers regionally?”

    2. Reroute Using Distributed Fulfillment

    If you’re shipping coast-to-coast from a single warehouse, you’re stacking up zone charges. A 4 lb box from NYC to Oregon isn’t the same cost as one going to Jersey.

    Using distributed fulfillment cuts zone distance, enables faster delivery, and reduces per-package surcharge exposure, including those related to domestic ground shipping services. This is especially important for large or heavy ecommerce products.

    Additionally, consolidating shipments can further minimize surcharge costs.

    3. Leverage Regional Carriers and USPS

    Don’t let UPS and FedEx think they’re the only game in town. Regional carriers like OnTrac and LSO are expanding coverage and love ecommerce volume. For lighter shipments, USPS remains competitive and immune to many surcharge layers. However, keep in mind that services like UPS Ground Saver® and various air services, including UPS Next Day Air, UPS 2nd Day Air, and international air options, are also subject to changing fuel surcharges, which can impact your shipping costs.

    Use carrier rate shopping logic to auto-select the most affordable carrier based on destination, weight, and dimensions, and consider how surcharges on UPS Ground Saver and air services may affect your total rates.

    4. Negotiate Like a Pro

    Yes, you can negotiate UPS and FedEx rates, but you need leverage. Demonstrating high shipping volume and effectively managing frequent shipments can provide significant bargaining power. Show them your volume growth, historical performance, and willingness to shift volume elsewhere. Push for:

    • Waived or reduced surcharges
    • Custom DIM divisor
    • Discounts for specific ZIPs or package types
    • Better terms on traditional shipping rates and all ancillary fees, not just base rates

    And don’t just do this once a year. Re-negotiate quarterly if needed.

    5. Bundle Smart and Reduce Dead Weight

    Product bundling sounds simple until you realize you’re accidentally triggering dimensional weight charges or bumping into a surcharge tier. Optimizing packaging can provide value-added benefits and reduce the risk of incurring extra surcharges.

    Use cartonization software or fulfillment logic to optimize what goes in each box. Small tweaks to packaging design or SKU mix can save you thousands.

    6. Offer Incentives to Offset Costs

    Let your customers help. Offer:

    • Store pickup or local delivery discounts
    • Extended delivery timelines for lower-cost options
    • Free shipping thresholds to encourage higher-margin AOVs

    You’re not passing on fees, you’re framing value.

    7. Monitor, Adjust, Repeat

    Surcharges change quarterly, and as mentioned, fuel surcharges are especially important to monitor as they can significantly bump your shipping costs. Fluctuating fuel prices directly impact how carriers adjust fuel surcharges, so it’s essential to track these changes and adjust your strategies accordingly. Don’t wait for the damage to show up in your P&L. Set up automated reporting by carrier, SKU, zone, and surcharge type. Watch trends.

    A client of ours shipping workout gear will trim \$40 K from their shipping budget by simply redesigning two SKUs to avoid “additional handling” fees. Total cost: \$3 K in packaging R&D.

    Recent changes include more frequent updates to fuel surcharges based on weekly fuel price indices, and new surcharge structures that can significantly bump costs if not closely monitored. The key takeaway: Stay proactive by tracking all surcharges, especially those affected by fluctuating fuel prices, and be ready to adjust your shipping strategies to minimize the impact on your bottom line.

    8. Stay Compliant: Commercial Invoice Requirements

    If you think surcharges only hit you at the shipping label, think again. Earlier this year, UPS rolled out a new “Paper Commercial Invoice Service Surcharge,” meaning every time you send a shipment with a paper commercial invoice, you’ll get dinged with an extra fee. For businesses still relying on traditional invoicing methods, this is one more way shipping costs can quietly inflate.

    A commercial invoice isn’t just paperwork; it’s a required document for international shipments, detailing what’s in the box, its value, and who’s sending and receiving it. Get it wrong, and you risk delays, compliance headaches, or even more fees. Get it right, and you keep your shipments moving and your costs in check.

    To avoid this new surcharge, start paying closer attention to your invoicing processes. Switching to digital form, electronic invoicing (e-invoices) not only helps you dodge the UPS paper invoice fee but also streamlines your shipping workflow and reduces manual errors. Make sure your shipping software or logistics provider supports digital commercial invoice generation and submission.

    Bottom line: staying compliant with commercial invoice requirements isn’t just about avoiding penalties, it’s about keeping your shipping costs under control and your business running smoothly. Don’t let outdated invoicing practices add unnecessary fees to every shipment. Embrace digital, stay ahead of the surcharges, and keep your logistics costs lean.

    Final Thoughts

    The 2025 UPS and FedEx surcharge landscape isn’t going to let up. But ecommerce brands that treat shipping like a strategic function, not a static cost, will thrive.

    To succeed, adopt a holistic approach to managing logistics costs across your entire supply chain. This means not only focusing on shipping rates, but also understanding how payment processes, payment habits, and payment fees impact your bottom line. Regularly review your payments strategy to optimize for efficiency and maintain healthy cash flow.

    Be aware that late payment fees, processing fees, and payment fees on most invoice charges can quickly add up, disrupting cash flow and increasing overall expenses. Late payers face a steep 9.9 percent late fee, and prior late fees will be incorporated into your past-due balance, compounding the cost of overdue accounts. Tracking each transaction and understanding the fee per payment method, whether ACH payments, wire transfers, or paper invoices, is essential for cost control.

    Traditional payment methods now often incur additional charges, so consider switching to ACH payments, which are typically fee-free and help streamline payment processes. Avoid extra costs by moving away from paper invoices and printed invoice copies, as these now come with a \$5 fee per invoice. Digital invoicing solutions can help you save money and improve efficiency.

    Always check the effective date of new surcharges and payment policy changes to ensure compliance and avoid unexpected costs. For expert guidance on navigating these changes and optimizing your logistics strategy, consult with an expert.

    Audit. Distribute. Negotiate. Automate. Adjust.

    It’s not about fighting surcharges with brute force. It’s about outsmarting them.

    So take a deep breath, pull up your shipping data, and start cutting where it counts. The savings are there. You just have to dig.

    Frequently Asked Questions

    What are the new UPS and FedEx surcharges for 2025?

    UPS and FedEx have introduced increased surcharges in 2025 for large packages, residential deliveries, and fuel costs, significantly impacting ecommerce shipping expenses.

    How can ecommerce brands reduce the impact of surcharges on large packages?

    Brands can redesign packaging to meet dimensional thresholds, negotiate cubic pricing, or split shipments when appropriate to avoid oversized surcharges.

    Can smaller ecommerce stores negotiate lower UPS and FedEx rates?

    Yes, especially by leveraging third-party fulfillment networks or 3PLs that aggregate volume across multiple sellers, giving them stronger negotiating power.

    Is it worth switching carriers due to the 2025 surcharge changes?

    That depends on your shipping profile. Some regional carriers or hybrid services may offer better rates and fewer surcharges for specific zones or package types.

    What role does shipping software play in managing surcharge costs?

    Shipping software can help reroute orders, compare carrier rates in real-time, and optimize label selection to minimize surcharges and boost cost efficiency.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Reduce the Carbon Footprint of Ecommerce Returns Without Greenwashing

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    12 minutes

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    Let’s get one thing out of the way: buying carbon offsets isn’t a silver bullet. Sure, they might make a brand feel better. Throw some money at a reforestation project, slap a “carbon neutral” badge on the website, and call it a day. But customers? They’re not fooled anymore. The modern ecommerce shopper is savvier, more eco-aware, and has a nose for greenwashing from a mile away. With the rise of ecommerce, online returns have become increasingly common, adding new layers of complexity to sustainability efforts.

    So, what can a brand actually do to make ecommerce returns more sustainable without hiding behind offsets and hope? Returns are the ecommerce world’s dirty secret. Returns significantly affect the environment by increasing emissions, packaging waste, and resource use due to the logistics involved in processing returned items.

    Let’s talk about it.

    Returns: The Hidden Carbon Emissions Sustainability Sinkhole

    Returns are the ecommerce world’s dirty secret. That stylish jacket that gets sent back because the fit’s off? It’s not always going back on the shelf. Sometimes it’s rerouted halfway across the country, sometimes it’s trashed. Literally. Return parcels often travel long distances, sometimes internationally, adding significantly to carbon emissions.

    According to industry estimates, ecommerce returns generate over 15 million metric tons of carbon emissions per year. Return shipping is a major contributor to these emissions, as the logistics of moving products back through the supply chain are often more complex than the original shipment. That’s not counting the packaging waste, the reverse logistics, or the markdown losses that fuel overproduction. In fact, the emissions from returns can be up to 30% higher than those from the initial delivery, and the return process can take up to three times longer than the initial delivery time, further increasing environmental strain.

    And it’s only getting worse.

    Returns are expected to increase in volume as online shopping keeps growing. Which means if a brand is serious about sustainability, this is the battleground. This is where the carbon battle is won or lost. Optimizing the return process is essential to reducing environmental impact and achieving true sustainability.

    The Problem with Offsets

    First, what are carbon offsets? Carbon offsets are a way to compensate for greenhouse gas emissions by funding projects that reduce or remove those emissions elsewhere. They represent a financial instrument, often in the form of carbon credits, that can be bought and sold to offset a company’s or individual’s carbon footprint. Essentially, you pay someone else to reduce emissions so you can balance out your own impact. Some refer to this practice as “greenwashing,” that is, misleading marketing that creates a positive public image as it relates to sustainability efforts, when in reality, companies are simply throwing money at the problem.

    Offsetting carbon emissions has become the default sustainability strategy for many ecommerce brands. But let’s call it what it often is: a shortcut. It’s easier to buy carbon credits than to rethink logistics. But it’s also increasingly under scrutiny.

    Customers and regulators alike are asking hard questions:

    • Are these offset projects even real?
    • Are they additional (i.e., would they have happened anyway)?
    • Are they permanent?
    • Are they actually reducing emissions or just moving guilt around?

    If the answer to any of those is fuzzy, that shiny “carbon neutral returns” badge starts to look more like PR theater than real progress.

    The Role of Fast Fashion in Ecommerce Returns

    Fast fashion is a major driver behind the mountain of ecommerce returns and the environmental impact that comes with it. The fashion industry records some of the highest return rates, thanks to a business model built on rapid trends, low prices, and disposable products. This cycle encourages customers to buy more, try more, and return more, often with little thought to the consequences.

    The result? A huge environmental impact. Every returned fast fashion item means more transportation, more packaging waste, and substantially more emissions. Many of these items are made from low-quality materials, making them harder to resell or recycle and more likely to end up in landfills.

    Online retailers in the fashion industry can help break this cycle by adopting sustainable return processes. This means making it easier for customers to get sizing and fit right the first time, offering detailed product information, and encouraging customers to think twice before making impulse purchases. By promoting mindful shopping and streamlining return processes, online retailers can reduce unnecessary returns and their associated emissions, helping to create a more sustainable future for fashion.

    What to Do Instead: Real Strategies for Sustainable Returns

    Let’s dig into actual solutions that reduce the carbon footprint of ecommerce returns without playing the offset game.

    1. Don’t Ship What Doesn’t Need to Be Returned

    Before we talk transportation, let’s talk logic. Some returns just… shouldn’t happen. For instance:

    • Low-cost items where shipping back costs more than the refund.
    • Used or damaged items are better suited for resale, donation, or recycling.

    Free returns policies often encourage customers to return more products, even when it’s unnecessary. As a result, customers return a significant percentage of online purchases, especially in categories like clothing, leading to high volumes of returns. This means customers sending back items unnecessarily, which increases emissions, packaging waste, and environmental impact.

    Amazon, Target, and others are experimenting with “keep it” policies. It’s not charity, it’s math. And it slashes emissions.

    Pro tip: Offer refunds or store credit for certain items without requiring them to be shipped back. Flag these automatically by value or category.

    2. Make Online Returns Local

    Centralized return centers? Good for control. Bad for emissions. Every mile adds CO₂. When return parcels travel long distances to centralized locations, they significantly increase carbon emissions. Return shipping over extended routes not only raises costs but also has a substantial environmental impact.

    Instead, build a distributed returns network using local micro-fulfillment centers, third-party dropoff points (like Happy Returns), or even store partners. Let returns travel shorter distances and restock closer to the next buyer, optimizing the returns process for local returns.

    Pro tip: If you run a Shopify store, check out apps that integrate dropoff points or enable peer-to-peer returns.

    3. Sell Returns Before They Ship

    This one’s juicy. Some startups (yes, Cahoot is in this space) are enabling returns rerouted directly to the next buyer.

    Say a customer in Dallas returns a pair of shoes. Instead of shipping them to a return hub in Ohio, list them instantly on your site as “open box,” and fulfill the next order right out of the first customer’s hands. The resale value of these products is a key economic consideration, as it may not always cover the expenses involved in the returns process. But in general, fewer miles, less waste, happier planet.

    Pro tip: Market “returned but good as new” inventory as a value-conscious, sustainable choice for the next buyer.

    4. Fix Fit, Friction, and Frustration

    A huge chunk of returns aren’t defects; they’re disconnects.

    • “This doesn’t fit like I thought it would.”
    • “The color’s off.”
    • “I didn’t realize it needed batteries.”

    These issues often arise when customer expectations are not clearly set or managed. Meeting or exceeding customer expectations through clear product information and communication is crucial to reducing returns.

    Every return like that is a failure of expectation-setting. Use smarter sizing guides, AR try-on tools, richer product pages, and yes, better post-purchase communication to prevent avoidable returns altogether.

    Pro tip: Track return reasons obsessively. Fix the upstream problem.

    5. Consolidate Reverse Logistics

    Every one-off return is a sustainability nightmare. Smart brands offer:

    • Scheduled return pickups
    • Bundled return shipments
    • QR-code dropoffs that batch items into optimized routes

    Optimizing returns processes is crucial for sustainability; streamlining each step reduces waste and environmental impact.

    Instead of one label, one box, one truck, turn returns into networked events. Fewer trips, fuller trucks, smaller footprint.

    Pro tip: Work with 3PLs or carriers that offer consolidated reverse logistics as part of their service model.

    6. Rethink Packaging and Waste

    Packaging is often the first thing customers see, and the first thing they throw away. Rethinking packaging and waste is a powerful way to shrink the carbon footprint of ecommerce returns. Start by swapping out traditional materials for sustainable packaging options: think biodegradable mailers, recyclable boxes, and paper-based alternatives to plastic bubble wrap.

    But don’t stop there. Encourage customers to reuse packaging for their returns, or even for other purposes at home. A simple “reuse and recycle” message in your return instructions can go a long way toward minimizing waste. Some brands even offer incentives for customers who return items in their original packaging.

    By prioritizing sustainable packaging and minimizing waste, online retailers can cut environmental costs and help build a more sustainable future, one return at a time.

    7. Leverage Technology for Smarter Returns

    Technology is a game-changer when it comes to optimizing return processes and reducing environmental impact. Virtual try-on technology lets customers see how clothes or accessories will look and fit before they buy, slashing the number of returns due to poor fit or style mismatches. This not only enhances customer satisfaction but also reduces the environmental footprint of online shopping.

    AI-powered return management systems can further streamline return processes for online retailers. These tools can predict which items are most likely to be returned, automate approvals, and even suggest the most sustainable route for each return. The result? Faster, smarter returns that use fewer resources and generate less waste.

    By embracing technology-driven solutions, online retailers can deliver a more positive customer experience while making meaningful progress toward sustainability.

    The Importance of Transparency and Accountability

    In the ecommerce industry, transparency and accountability are non-negotiable for reducing the environmental impact of returns. Customers want to know exactly how their returns are handled, where items go, how waste is minimized, and what steps are being taken to reduce emissions.

    Online retailers should clearly communicate their return policies and processes, making it easy for customers to understand what happens after they send something back. This includes being upfront about efforts to minimize waste, use sustainable materials, and optimize return processes for lower emissions.

    By holding themselves accountable and sharing their progress, online retailers can build trust, set themselves apart in a crowded market, and drive the entire industry toward more sustainable practices.

    Reducing Environmental Impact through Education

    Education is a powerful tool for reducing the environmental impact of ecommerce returns. Online retailers have a unique opportunity to inform customers about the environmental costs of returns and the benefits of making more sustainable choices.

    This can be as simple as including information on product pages about the carbon footprint of returns, or as involved as partnering with environmental organizations to promote sustainable shopping habits. By raising awareness and encouraging customers to think before they buy or return, retailers can help shift behavior toward a more sustainable future.

    Empowering customers with knowledge not only reduces waste and emissions but also strengthens brand loyalty and positions online retailers as leaders in building a more sustainable ecommerce industry.

    The Bigger Picture: Returns as a Circular Opportunity

    Sustainability isn’t just about less carbon. It’s about less waste, less overproduction, and more reuse. Using more sustainable materials in returned products can significantly reduce the environmental impact and support circularity.

    Returned items don’t have to be liquidated, dumped, or buried in clearance tabs. With the right tech stack and reverse logistics flow, returns can fuel:

    • Refurbished product lines
    • Second-chance marketplaces
    • Loyalty-building exchanges
    • In-house recommerce

    However, the process of handling returns often generates extra packaging materials, excess packaging, plastic packaging, plastic waste, and plastic packaging waste, all of which contribute to environmental impact and landfill accumulation. Returned synthetic products can emit plastic particles, further polluting the environment. Improper disposal of returned goods can even result in open-air dumping sites, as seen in some regions.

    The scale of the problem is massive, with billions of pounds of returned products, specifically, 9.5 billion pounds, ending up in landfills each year. These practices contribute to global carbon emissions, greenhouse gas emissions, and CO2 emissions, highlighting the true environmental cost of ecommerce returns. Many synthetic materials in returned goods are produced using fossil fuels, compounding the emissions problem.

    Certain categories, such as consumer electronics, present unique challenges due to hazardous materials and recycling difficulties. Compared to returns from online shopping, in-store purchases generally have lower return rates and generate less waste, making them more sustainable options. Thus, traditional shopping contributes less to packaging waste and emissions than ecommerce.

    Online shopping returns and ecommerce returns, however, are associated with higher rates of returns, more packaging waste, and greater environmental cost. Online shopping leads to increased waste from online purchases, and the percentage of returns from online purchases varies widely by industry. The fashion industry recorded some of the highest return rates, further amplifying the issue.

    The same emissions generated by reverse logistics, repackaging, and landfilling of returns are comparable to those produced by millions of cars. Paper waste is another significant byproduct of inefficient return processes.

    Both consumers and retailers share responsibility for reducing the environmental impact of returns. Adopting sustainable practices can improve customer loyalty and demonstrate environmental responsibility, helping brands improve customer loyalty and build long-term trust.

    Brands like Patagonia, Lululemon, and IKEA are already piloting resale programs that give used items a second life. This isn’t fringe. It’s the new mainstream. Swapping plastic packaging for more sustainable alternatives is another step brands can take to reduce waste and support circularity.

    Pro tip: Create a branded “like new” collection and route eligible returns there instead of the liquidation abyss.

    TL;DR: Stop Offsetting, Start Optimizing

    If your entire returns sustainability strategy hinges on buying carbon credits, it’s time for a reboot.

    Ecommerce brands have a huge opportunity to lead by:

    • Reducing returns in the first place
    • Routing them smarter and shorter
    • Repurposing returns into value
    • Implementing infrastructure that supports circular commerce

    And you don’t need to be a $1B DTC darling to do this. Start small. Automate smarter. Ask better questions.

    Because no amount of offsets will fix a broken process.

    Frequently Asked Questions

    How can ecommerce brands reduce return-related carbon emissions without offsets?

    By using regional return hubs, minimizing return shipments through virtual try-ons or better sizing tools, and refurbishing items locally instead of reshipping them.

    Why are carbon offsets considered greenwashing by some experts?

    Because many offsets don’t reduce emissions at the source, they often act as a license to pollute rather than driving systemic sustainability improvements.

    What are practical alternatives to carbon offsets for online retailers?

    Implementing smart return routing, peer-to-peer resale, local drop-off partnerships, and clearer product education can meaningfully reduce returns emissions.

    Do returns really make a big environmental impact?

    Yes, especially when returns are shipped back, repackaged, restocked, or discarded. Each step contributes to carbon output, waste, and energy use.

    How can ecommerce brands make their returns policy more sustainable?

    Start by making returns frictionless but intentional: require reason codes, incentivize exchanges, offer local return options, and prioritize reuse or donation of returned items.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Why Temperature-Controlled 3PL Fulfillment Services Is Hot

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    So here’s the deal: not all products like to chill the same way. Some want crisp air. Others prefer it mild. And then there are the divas, like cheese, chocolate, and pharmaceuticals, that absolutely must stay within a consistent temperature range or things go sideways fast. Enter the world of temperature-controlled 3PL fulfillment services, where warehouses become climate whisperers and storage becomes science.

    And let’s be honest, if you’re shipping temperature-sensitive products without the right temperature control setup, you’re flirting with spoilage, recalls, and angry emails. No one wants that.

    Why Brands Are Getting Serious About Temperature-Controlled Warehousing

    Blame it on the rise of DTC food, supplements, skincare, and all those perishable goods showing up on doorsteps. Ecommerce has exploded into categories that used to be strictly brick-and-mortar. Now everyone’s shipping salsa, serum, and medicinal products, and they all demand different temperature ranges and humidity levels.

    That’s where temperature-controlled warehousing steps up. It’s not just about slapping an AC unit in the corner and calling it a day. A true climate-controlled warehouse is a carefully calibrated environment, with everything from refrigeration equipment to humidity control, air conditioning, and yes, even sandwich panels to regulate insulation.

    Think of it like this: the temperature-controlled warehouse maintains product integrity the way a museum maintains art. It’s protection. It’s preservation. It’s essential.

    Four Ranges, Endless Requirements

    Let’s talk numbers. Most temperature-controlled facilities operate within four different temperature ranges:

    1. Frozen (-10°F to 0°F): For ice cream, frozen meats, and products that prefer sub-zero vibes.

    2. Refrigerated (33°F to 40°F): Think produce, pharmaceutical products, food grade items, and alcoholic beverages that demand cool-but-not-frozen conditions.

    3. Ambient storage (50°F to 70°F): This is your standard controlled environment, great for supplements, makeup, or dry snacks.

    4. Room temperature with humidity control: Often overlooked but critical for chocolate, electronics, and other temperature-sensitive goods.

    Without proper temperature monitoring, one spike in heat or dip in cold air, and your stored goods could be toast. Literally. Improper storage doesn’t just shorten shelf life, it can lead to product quality issues, regulatory compliance headaches, and, worst-case scenario, a full-blown recall.

    The Cold Storage Supply Chain Is Booming

    We’ve all heard of the cold chain, but the spotlight on cold storage really intensified during the pandemic. Vaccines, fresh produce, and meal kits made everyone realize how fragile product integrity can be when temps aren’t dialed in just right.

    Now that ecommerce has leaned hard into consumables, the need for temperature-controlled warehouse facilities isn’t just for Big Pharma or Big Food. Even indie brands selling elderberry syrup or adaptogen smoothies need safe storage that meets safety standards.

    And that’s where 3PLs with temperature-controlled warehousing solutions come in hot (and cold). They’re building out storage space with energy consumption top of mind, balancing optimal storage with sustainability. It’s a delicate dance, keeping products stored safely while not blowing up the power bill.

    When Is Controlled Warehousing the Right Move?

    If you’re shipping anything that falls under sensitive products, perishable products, or items with “store below 72°F” on the label, yes, it’s time. That includes:

    • Food products (fresh, frozen, or fancy)
    • Pharmaceutical products
    • Alcoholic beverages (yes, some spoil)
    • Temperature sensitive goods like vitamins, probiotics, and CBD
    • High-end cosmetics and skincare with active ingredients
    • Specialty beverages, dairy alternatives, etc.

    Look, there’s no one-size-fits-all in fulfillment. But if your goods don’t like high temperatures, or they melt, separate, rot, or grow fur in transit, temperature controlled storage isn’t optional. It’s critical.

    Key Benefits of Temperature-Controlled 3PL Fulfillment

    Here’s what a solid temperature controlled warehousing partner brings to the table:

    • Consistency. A climate-controlled setup isn’t just cool sometimes. A good 3PL keeps a consistent temperature 24/7 using smart sensors, alarms, and responsive temperature monitoring systems.
    • Flexibility. Need 1,000 square feet today and 10,000 next month? The right provider scales storage units and square footage with your seasonal swings.
    • Regulatory compliance. Whether you’re dealing with FDA, USDA, or international guidelines, these folks help ensure compliance so you don’t get flagged or fined.
    • Product quality. When your stored goods arrive fresh, intact, and ready to use, your customers notice. And so do your reviews.
    • Lower risk. No more worrying about improper storage, spoiled batches, or losing a pallet because someone didn’t close the fridge door right.

    What to Look for in a Temperature-Controlled Facility

    Not all warehousing solutions are created equal. If you’re shopping for a 3PL, ask the awkward questions:

    • What temperature ranges do they support?
    • Can they offer different temperature zones in the same facility?
    • Do they offer cold chain tracking or just ambient delivery?
    • How often do they inspect and recalibrate their refrigeration equipment?
    • What’s their backup power situation if temperatures rise unexpectedly?

    Oh, and don’t forget the nerdy stuff, like expansion valves, airflow testing, and environmental conditions reporting. It’s not sexy, but it matters.

    Final Thoughts

    As ecommerce keeps moving into categories like wellness, food, and pharma, temperature-controlled warehousing needs are becoming the norm, not the niche. A few degrees can make or break a customer experience. A few missed requirements can sink a whole product launch.

    So if you’re scaling a brand that relies on product integrity, get serious about your controlled warehousing strategy. Because when it comes to sensitive goods, the wrong warehouse is worse than no warehouse at all.

    And if you’re still storing collagen gummies in your garage, well, it’s time to upgrade.

    Frequently Asked Questions

    What is temperature-controlled warehousing, and why does it matter?

    Temperature-controlled warehousing is a storage solution that keeps goods within specific temperature and humidity ranges. It protects temperature-sensitive products from spoilage, ensuring quality, safety, and compliance across the supply chain.

    Which products require temperature-controlled storage?

    Items like perishable food, pharmaceutical products, skincare, supplements, and alcoholic beverages often need controlled temperatures to maintain product integrity and shelf life.

    What temperature ranges are used in temperature-controlled warehouse facilities?

    Most facilities operate within four different temperature ranges: frozen (-10°F to 0°F), refrigerated (33°F to 40°F), ambient (50°F to 70°F), and room temp with humidity control.

    How does temperature-controlled warehousing support regulatory compliance?

    By maintaining a consistent temperature range and offering detailed temperature monitoring, controlled facilities help brands meet FDA, USDA, and food safety standards.

    Can a 3PL offer both ambient storage and cold chain solutions?

    Yes. Many modern 3PLs provide flexible temperature-controlled warehousing solutions that include cold storage, ambient zones, and climate-controlled spaces, all under one roof.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Rich Returns & Exchanges: Advantages and Disadvantages

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    6 minutes

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    Rich Returns & Exchanges is a Shopify app designed to automate returns and exchanges for merchants, with a special focus on integration with the Shop mobile app. In other words, it’s a commerce merchant’s tool to let customers initiate returns/refunds or exchanges smoothly on mobile and web. The app promises a “mobile-first experience” where customers can start returns right from the Shop App (Shopify’s shopping app) at checkout. Behind the scenes, Rich Returns provides an intuitive, self-service returns portal and label generation system, plus analytics to manage refund and exchange rules. In practice, many Shopify stores use it to centralize returns: it pulls order data directly from Shopify, simplifies refunds (even by issuing store credit), and tracks everything in a unified dashboard.

    What Rich Returns Does Well

    On the features side, Rich Returns covers the expected bases of a modern returns tool. It offers a custom-branded returns portal (hosted on the merchant’s site) where customers see their order, select items to return or exchange, and choose a refund method (original payment, store credit, etc.). The app automatically generates prepaid return labels from over 100 carriers worldwide; for example, FedEx, UPS, USPS, DHL, etc., so customers only need to print labels and drop off packages. Rich Returns even provides pre-filled return labels, eliminating the need for shoppers to enter address details, which users say “saves a lot of time and effort.” Email notifications are sent out at key milestones (return received, refund issued, etc.) to keep customers informed. A particularly unique advantage is the tight Shop App integration: merchants can let shoppers handle returns directly via Shopify’s mobile Shop app, creating a seamless, “mobile-first experience” in line with modern commerce. This means returns are visible to the customer just like any order, boosting transparency.

    For merchants, Rich Returns provides automation rules and insights. You can set up conditional exchange suggestions (so if an item isn’t working, the system can prompt an exchange offer instead of a refund) to help “recapture lost revenue”. The app can automatically apply basic refund or exchange policies, and even offer discounted shipping labels if connected to certain apps (e.g., EasyPost). It supports data syncing with Shopify and common CRM tools (e.g., Intercom, Klaviyo) so that returns data and analytics flow into a merchant’s dashboard. According to app store details, the Standard plan ($19/mo) includes features like 10 free returns per month, a branded portal, and automated labels. Higher plans unlock multi-language support and advanced rules. Overall, many review snippets highlight responsive support and ongoing new features; one user said the team is “constantly improving and adding new features”. Rich Returns aims to improve customer satisfaction by making returns frictionless, ultimately helping brands build loyalty and scale up. In short, its strengths include a polished user interface, a built-for-Shopify architecture, and a clear focus on retaining revenue through exchanges and store credit.

    Where Things Fall Apart

    On the downside, a few limitations emerge. A prominent complaint is limited multi-language support. One Shopify reviewer gave low marks, saying: “App does not really support multi-language. Very poor implementation with limitations.” They noted some parts of the interface were not fully localized. In today’s global market, that can be a drawback for brands selling in multiple regions. Another issue is rich media: the same review mentioned that including photo (and video) uploads in the return form requires an extra paid add-on, and base support is lacking. In other words, if a customer needs to show a picture of a defect, Rich Returns’ basic plan doesn’t cover it; that feature must be purchased separately. A few merchants also found the app’s feature set “quite basic” for complex returns workflows: as one put it, it’s “not made as a platform, because every manual interaction has to be handled through another tool or Shopify.” This suggests that while core refund/exchange flows are covered, anything outside those (e.g., special RMA review processes) might require manual work or another system.

    Some support issues have surfaced, too. Though many five-star reviews praise the team’s responsiveness, at least one user reported slow or “standard answers” that didn’t solve problems. This mirrors AfterShip’s feedback in a way: good support is not always guaranteed. Pricing can be another pain point for growing merchants. Only the Standard plan is very low cost; volume fees kick in after 10 returns per month. If a shop has hundreds of returns, the cost can climb, and some users express frustration at ongoing per-return charges. That said, Rich Returns is generally seen as affordable for what it offers.

    Smaller Gaps and Missing Features

    In terms of integrations, Rich Returns supports carriers through apps like EasyPost/Shippo (so effectively 100+ carriers) and connects to Shopify natively. It lacks dedicated Shopify Plus or alternative platform integrations, but it doesn’t need to since it’s Shopify-centric. We should note, however, that as a younger app (launched in 2019, with about 80 reviews), it does not have the decades-long pedigree of older systems. Some advanced features, like returns consolidation or very granular automation, are still evolving.

    Verdict: Built for Shopify Simplicity, But Light on Power Features

    Rich Returns is a solid choice for Shopify merchants who want a modern, mobile-friendly returns system deeply integrated with Shopify data and the Shop app. Its advantages include a responsive interface, exchange incentives to hold onto sales, and automated return label creation from many carriers. Support and user reviews are generally positive, which is notable given some apps’ history of ignoring merchants. However, the drawbacks, such as limited languages, the need to pay extra for media uploads, and basic (non-enterprise) workflows, mean it may not suit large global brands or very complex returns needs. In practice, Rich Returns tends to be praised for ease of setup and ongoing improvements, but critics warn about the absence of deeper customization.

    For U.S. ecommerce operators weighing returns solutions, Rich Returns compares favorably to standard options (like AfterShip), but alternatives exist. For example, Cahoot’s peer-to-peer returns solution can dramatically reduce shipping costs by routing returns directly from the returning customer to the next purchasing customer. In any case, Rich Returns achieves its goal of “saving time” and boosting revenue via exchanges, yet it’s important to verify that its features (multi-language, integrations, any extra fees) align with your store’s scale and customer base before committing.

    Frequently Asked Questions

    Is Rich Returns only for Shopify?

    Yes. It’s built specifically for Shopify merchants, with deep native integration and support for the Shop App. It’s not compatible with other ecommerce platforms.

    Does it support photo uploads for return claims?

    Not by default. Media uploads like photos or videos require a paid add-on. If your returns workflow relies on image-based verification, you’ll need to factor that into your budget.

    Can Rich Returns handle exchanges automatically?

    Yes, to a point. It supports exchange flows and can automatically suggest alternate items or offer store credit, helpful for saving the sale rather than losing it to a refund.

    Is there multi-language support for international customers?

    Sort of. Higher-tier plans include limited multi-language support, but some merchants report that localization is incomplete or poorly implemented.

    What sets Rich Returns apart from other returns apps?

    Its biggest strength is simplicity, especially for Shopify users. It’s easy to install, mobile-friendly, and offers a polished UI. That said, it may not have the depth or flexibility needed by large, complex operations.

    Written By:

    Rinaldi Juwono

    Rinaldi Juwono

    Rinaldi Juwono leads content and SEO strategy at Cahoot, crafting data-driven insights that help ecommerce brands navigate logistics challenges. He works closely with the product, sales, and operations teams to translate Cahoot’s innovations into actionable strategies merchants can use to grow smarter and leaner.

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    AfterShip Returns Management Solution: Advantages and Disadvantages

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    9 minutes

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    AfterShip’s Returns platform (often called AfterShip Returns Center) is a post-purchase tool that lets online retailers manage all customer returns and exchanges through a branded returns management portal that centralizes all return-related activities. In theory, it streamlines the entire returns process, from customer self-service returns to automated label generation, promising to “ensure a happy post-purchase experience”. The service integrates with major carriers (FedEx, USPS, Canada Post, etc.) to automatically generate return labels (prepaid shipping labels or merchant-paid labels) and track return shipments. In practice, many merchants praise its automation and analytics, but a significant number also report pain points with workflow and support. We’ll dig into the key features and then highlight the notable drawbacks, focusing especially on the latter.

    What AfterShip Does Well

    One of AfterShip’s selling points is a custom-branded returns portal. Merchants can publish a returns page on their domain (using store branding and colors) where customers see the store’s return policy and submit returns requests. Shoppers just enter an order number and email on this branded returns page and initiate a return “in just a few clicks”. This self-service approach avoids the email back-and-forth of traditional returns. Customers pick items and reasons for return on-screen, then AfterShip can automatically generate RMA numbers and prepaid return labels for them. The platform even offers discounted USPS label rates and supports printless QR-code drop-offs at 300K+ locations (including Canada Post and Happy Returns drop-off kiosks) to make return shipping easier. Customers can simply print the prepaid label and attach it to the box for return shipping, following the clear shipping instructions provided by AfterShip. In short, AfterShip’s returns page and label generation aim to create a seamless returns experience: customers can “return products and exchange products via a branded returns portal”, reducing hassle and improving customer satisfaction. The ease of use means customers can simply print their return labels at home.

    Importantly, AfterShip advertises strong automation and analytics. Its dashboard centralizes all returns requests, RMA requests, and shipping status updates, which in trials has cut handling time in half (“50% reduction in returns processing time”). Merchants can set routing rules and eligibility rules (for example, auto-approve returns for certain items or dates) to speed up the returns approval process. The system can automate repetitive tasks in the returns process, reducing manual effort. The system can automatically create exchange orders or process refunds based on these rules, freeing merchants from manual steps. It also tracks every return shipment’s returns status and triggers email status updates to reassure customers. All this data feeds into an analytics dashboard to gain visibility on return rates, label costs, process time, and other key metrics. The idea is that AfterShip not only “saves processing time” and “reduces costs” by automating manual tasks, but also helps “recapture revenue with product exchanges” and increase brand loyalty by treating returns as marketing opportunities. AfterShip Returns helps build brand loyalty by providing a positive post-purchase experience.

    In practice, many users find AfterShip’s interface and setup quite intuitive. Merchants say the returns page looks clean and integrates well with their store, and carriers like UPS, FedEx, USPS (and even Google Shopping integration via US Postal APIs) work without extra apps. The Shopify/BigCommerce app plug-ins make installation straightforward, and AfterShip’s pre-built integrations cover most common ecommerce platforms.

    AfterShip provides detailed information about each step of the returns process, including setup, tracking, and support. On the positive side, support for analytics and exchange incentives means good customers can be offered store-credit refunds (instead of a full cash refund) to “turn returns into repurchases”. The platform allows merchants to efficiently track all returns requests in one place, and each returns request is logged and processed through the portal. Refunds can be issued directly to the original payment method. All these features work together to improve customer satisfaction.

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    Summary: What Makes AfterShip Stand Out (When It Does)

    • Branded returns pages with custom styling
    • Prepaid shipping labels with carrier integrations
    • Supports prepaid labels for easy customer returns
    • Rules-based automation (refund/exchange approval)
    • Real-time tracking and return shipment visibility
    • Basic analytics dashboard and reporting
    • Discounted USPS rates and printless QR return options
    • Seamless setup for Shopify, BigCommerce, and similar platforms
    • Happy Returns partnership for boxless returns

    Where Things Fall Apart

    However, numerous drawbacks have emerged in real-world use. A frequent theme is customer support issues. Several merchants on Shopify’s app store and review sites describe “terrible support” and generic, unhelpful responses. One store owner wrote that “the biggest issue is the customer service: it is terrible. Every agent is copying and pasting generic answers that have nothing to do with the issue… I would stay away from this app”. Others echo this, saying support tickets are closed without resolution and that agents lack product knowledge. A Canadian user complained, “Useless Customer Support cannot provide any help with the issue… We will switch to another tool”. These reports suggest merchants sometimes face long delays or poor communication when things go wrong.

    On the feature side, AfterShip’s returns processes can be too rigid for some workflows. One merchant noted it’s not possible to skip intermediary steps (e.g., approve → refunded) without creating a “received” state first. Others have pointed out that the system’s canned email templates can have grammar errors and cannot be fully edited, which hurts the brand experience. Integration is another concern: while AfterShip works well with its own family of tools, many users say “most of its integrations only support other AfterShip products”, so if your store uses third-party warehousing or custom CRMs, you might find the returns center’s connectivity limited.

    When AfterShip’s integrations fall short, merchants may face all the hassles of managing returns across multiple platforms, increasing complexity and manual work. In practice, some customers must manually upload prepaid labels if their preferred carrier isn’t supported, or use multiple platforms to process returns. In short, despite handling “all the returns requests” through one portal, a retailer may still end up juggling separate tools for complex returns flows.

    Pricing and user policies have also disappointed some long-time users. AfterShip offers a free tier (a small number of returns per month) and several paid plans, but several reviews mention unexpected charges and changes. For example, one complaint said AfterShip abruptly changed to a per-user billing model and logged them out of the app without notice, calling the move “unethical and totally shameful”. Another user reported that after a recent update, “nothing is working like before”, the team couldn’t generate return labels and had to recreate accounts, effectively paying for access again. Others mention they can’t bundle all return shipping charges into a single monthly invoice, leading to confusion. These anecdotes suggest that policy changes can catch merchants off guard, adding hassles and potential “lost revenue” if returns are delayed.

    Privacy concerns have even been raised: one merchant warned that AfterShip might store outdated customer emails in its database, which “violates US and EU laws”. While AfterShip responded that it respects privacy, such claims highlight merchant unease about data handling.

    Finally, usability gaps remain. Some merchants find AfterShip’s portal lacking in multi-language support (despite international carrier integration) and in rich return options. A notable review said the app is “quite basic… every manual interaction has to be handled through another tool or Shopify”. Others wanted a built-in photo or video upload for returns (especially helpful for defect claims), but Rich Returns (not AfterShip) is mentioned for that. In AfterShip’s case, you can only upload photos in a limited way via the RMA management, which some users find inadequate.

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    Summary: Smaller Gaps and Missing Features

    • No peer-to-peer returns or next-generation solutions
    • No in-store returns workflows (omnichannel support is light)
    • No deep integration marketplace beyond core platforms
    • Photo/video documentation is not built in by default
    • Limited support for multi-language/localization
    • Email templates can’t be fully customized on all tiers
    • Returns policy customization and related workflow/routing rules are limited

    Verdict: Feature-Packed and Familiar, But Support and Flexibility Fall Short

    AfterShip Returns & Exchanges provides a robust automated returns solution with branded pages, multi-carrier label support, and flexible return rules, all aimed at “improving customer satisfaction” and “saving time”. When it works well, it does reduce the hassles of returns for both merchants and shoppers. However, many merchants report frustrations: particularly poor customer support, occasional system bugs (e.g., label generation failures), and unexpected pricing changes. Integration can also be a double-edged sword: the tight AfterShip ecosystem means great performance with built-in carriers, but limited options if you rely on other services.

    In summary, AfterShip Returns Center is a mature, feature-rich portal for managing returns and exchanges in ecommerce. It excels at automating routine tasks (like label generation and status updates) and can truly “save processing time” and recover revenue through exchanges. Yet its disadvantages, chiefly support headaches and some workflow inflexibility, are significant for many merchants. If you value a wide integration network and 24/7 responsive service, be prepared for trade-offs. For U.S. brand operators looking at alternatives, consider that newer solutions like Cahoot’s peer-to-peer network promise to cut shipping costs by matching returned items to new buyers in-market. In short, AfterShip delivers many powerful returns features (including branded returns pages and automated carrier label generation), but its real-world cons, notably support and integration gaps, can leave customer satisfaction hanging in the balance.

    Frequently Asked Questions

    Does AfterShip Returns work with all carriers?

    Not all of them. AfterShip supports major carriers like USPS, FedEx, UPS, and Canada Post, but for anything beyond that, merchants may need to manually upload return labels or rely on third-party tools.

    Can customers submit return requests directly from my website?

    Yes! AfterShip lets you publish a branded returns page where shoppers can initiate returns “in just a few clicks” using their order number and email.

    What kind of automation does AfterShip offer for returns?

    AfterShip includes basic automation rules, like auto-approving returns or triggering refunds based on eligibility. It also handles label generation and sends email status updates to customers automatically.

    Are there hidden fees or plan limitations I should be aware of?

    Several merchants have reported unexpected billing model changes and confusion around per-user charges or return volume tiers. It’s a good idea to read the fine print and monitor invoices.

    How does AfterShip handle support?

    Support is a mixed bag. Some users have good experiences, but others report generic responses and unresolved tickets. If hands-on support is critical, this might be a weak spot.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    ZigZag Returns Management Solution: Advantages and Disadvantages

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    11 minutes

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    A customer on your site just wants to click “Return Item” and be greeted by a sleek, branded portal that walks them through refunds, exchanges, and tracking. That’s the promise of ZigZag, a UK-born returns management platform now serving brands worldwide. ZigZag’s mission is to transform the ecommerce returns process for companies and consumers, aiming to improve customer experience and profitability for businesses of all sizes.

    In practice, ZigZag offers a fully white-labeled returns portal with rules-driven workflows, multiple return options (exchanges, store credit, paid returns, or in-store drop-offs), and global carrier integrations. As an innovative SaaS platform, ZigZag Global creates tailored solutions for businesses and retailers to streamline their returns journey and enhance operational efficiency. ZigZag Global’s international presence is further strengthened by its partnership with Global Blue, providing a comprehensive logistics network for retailers and companies worldwide.

    The tool’s global footprint (1,500+ carriers and multilingual/currency support) is a big plus for cross-border sellers. In fact, ZigZag touts connections to 220 warehouses and 1,500 carriers across 170+ countries, and its European Returns Hub handles item validation, grading, and customs clearance for international returns. Through the consolidation of shipments and the automation of processes, companies can save money and improve profitability. The system also emphasizes revenue retention: for example, it enables “live exchanges” in place of refunds and even paid-return fees to recoup costs.

    ZigZag’s innovative solutions and investment in technology enhance the ecommerce returns experience for both businesses and consumers. In short, ZigZag’s software does a lot, making returns easy for customers and giving brands granular control of the process.

    Customers and reviewers generally praise ZigZag’s ease of use and integration. Merchants report that the returns dashboard is intuitive and everything “needed is in one place,” tracking is straightforward, and reporting is “a breeze.” ZigZag assists businesses with analytics and reporting tools to optimize performance and maximize the value of their investment.

    The Shopify app for ZigZag even advertises “one-click installation” and automatically handles orders, exchanges, and refunds within Shopify’s admin. Brands appreciate that the portal can be fully branded (on your own domain) and set to multiple languages and currencies, which is crucial for international shoppers.

    Another plus is customer support: ZigZag insists on in-house support, assigning a dedicated account manager to your account. In practice, users say onboarding and help have been “stress-free” and responsive, a major advantage over solutions that outsource support. ZigZag’s focus on customer satisfaction and experience benefits both consumers and retailers.

    What ZigZag Does Well

    In our testing and research, ZigZag shines at automating the returns front end. It offers a rich rule engine so that returns can trigger various outcomes (refund, exchange, credit, donation, etc.) without manual work. ZigZag enables retailers to automate returns and exchange processes, improving the overall functionality and efficiency of their online store. It ties deeply into Shopify (and others via API), so inventory, order data, and even apps like email or CRM can all connect cleanly.

    The platform is enterprise-grade: it can scale to thousands of returns a month, and it literally handles diverse cases, everything from faulty items to “just didn’t like it” exchanges. The reporting hub surfaces why people are returning items (and which products suffer the most returns), helping brands act on trends. Tracking processed returns and analyzing the returns journey helps companies make data-driven decisions to drive growth.

    Importantly for U.S. e-tailers, ZigZag does support USPS shipping labels natively (along with UK/EU carriers like DPD, Evri, and Yodel), so domestic returns via USPS can be auto-generated. There are a variety of shipping options available to consumers, enhancing convenience and customer experience. All told, ZigZag’s core feature set is robust: conditional logic, branded portal, a range of return options, and detailed analytics. The platform enhances the returns and exchanges process, supporting business growth and customer satisfaction.

    Where the Returns Journey Starts to Wobble

    ZigZag’s software is polished, but it leans heavily on carriers and partners for logistics, and that’s where some cracks show, especially for U.S. brands. First, no one-stop logistics: ZigZag does not operate its own drop-off network or local warehouses outside Europe. Its “Returns Hub” (in Germany) handles EU returns with grading and customs, but there’s no equivalent U.S. hub. In practice, that means returns from U.S. customers often just go through USPS (or whichever carrier you pick) back to your warehouse or ZigZag’s foreign hub. This can lead to longer transit times or an inconsistent experience. Reviewers note that carrier performance varies: “Some of the carriers can be slower than others,” one user pointed out, hinting that having 1,500 options doesn’t eliminate slow shipping.

    Another wobble is carrier support on the U.S. side. ZigZag’s Shopify app explicitly lists Evri, Yodel, DPD, and USPS as the supported labels. FedEx, UPS, and DHL (the big U.S. carriers) are notably absent from that list. The workaround is to “upload your own” label if you want another carrier, but that defeats the purpose of automation. In short, ZigZag leaves out FedEx/UPS integration, which many U.S. merchants need. This gap forces brands either to restrict returns to USPS or spend time bridging that hole themselves (or use a third-party connector).

    Integration breadth is also a trade-off. Yes, ZigZag has connectors for Shopify, BigCommerce, Magento (and even mentions NetSuite, Amazon via partners). But actually hooking up a complex stack can be non-trivial. The company claims “1-hour” API integrations, but in reality, merchants tell us it often takes weeks of developer work to wire up multiple platforms or custom databases. If you’re on Shopify, you can be up and running quickly; if you’re on another system (Salesforce Commerce Cloud, a custom headless frontend, etc.), you’ll need engineers or a consulting partner. There isn’t a turnkey Zapier-like marketplace of Zap-ready connectors (beyond the prebuilt ones), so integration can stumble for non-technical teams.

    User interface customization has its limits, too. Many like that the portal is simple, but a few UI snags emerged from reviews. For example, one review noted a lack of flexibility in label formats—“not much flex on the labels”—making warehouse operations slightly harder. Another mentioned the admin side: some “would prefer the admin portal to have more features” for self-service. In practice, you often have to go to ZigZag’s account team to tweak a portal detail or add a new condition. The design and functionality of the returns portal page are also important for a seamless user experience, especially when it comes to customizing fonts and the overall user interface. That’s fine once you’re live, but it can slow down the setup.

    Finally, while we emphasize ZigZag’s global promise, be cautious with “international support.” It handles multi-currency and customs documentation (especially from the EU side), but for returns into the U.S., it doesn’t magically manage duties or taxes. If your U.S. shoppers are returning imports from China, ZigZag doesn’t issue refund claims for duties; you’d need to handle that yourself. In short, ZigZag is very strong as software, but it expects your logistics team to stitch together the actual flows. As one analogy from a similar review put it: “You’ll still need to stitch together parts of your reverse supply chain due to the absence of integrated services.”

    What’s Missing

    Beyond the issues above, several features you might expect in a modern returns solution are absent. Notably, no peer-to-peer or locker network: customers can’t drop returns at neighborhood lockers or UPS stores through ZigZag itself. That’s a capability rivals like Narvar or Happy Returns offer to speed up U.S. returns. (ZigZag would need you to ship the item to a specific address instead.) Likewise, there’s no in-app product scanning or proof of condition on return. The platform doesn’t natively capture photos of returned goods or scan product barcodes to confirm authenticity; it’s purely a front-end/label solution.

    There’s also no built-in fraud prevention or advanced triage AI. Some new platforms claim to analyze returns reasons to flag possible abuse; ZigZag leaves that analysis up to you. While the portal has ample reporting, its lower-tier plans may lack some advanced analytics (as in other apps), so true “deep dive” data might require exporting to another BI tool. Additionally, there is no built-in functionality for managing discounts or syncing promotional codes within the returns process, which can be important for stores that need to track or apply discounts related to returned orders.

    In terms of U.S. localization, besides the carrier gap, there’s minimal U.S.-centric UI. All official docs and case studies are Euro-focused (Selfridges, Zara, Sportsshoes UK, etc.), and the support team is Europe-based. So if you need 24/7 stateside help or Spanish-language guides (for a U.S. brand), you might find ZigZag somewhat light on localized resources. (It does offer a Castilian Spanish portal language.)

    In short, ZigZag lacks the physical/logistics side of returns. You won’t find out-of-box local drop-off points, a product scanning network, or a domestic warehouse. Advanced features like same-day returns processing or plug-in 3PL fulfillment are not part of ZigZag’s offering. If you truly need an end-to-end solution, then ZigZag only covers the digital slice; everything else is up to you.

    Verdict: Powerful Returns Tech, If You Bring the Logistics

    ZigZag Returns is excellent software for brands that need a sophisticated digital returns portal. It earns high marks for usability, Shopify-friendly integration, and revenue-saving tactics (exchanges, store credit, paid returns). Its global reach is real, with 1,500+ carriers and multilingual, multi-currency support; it’s a solid choice for retailers shipping worldwide. The in-house support model and enterprise focus (Sportsshoes, ECCO, etc., are users) mean you get a team on your side to fine-tune workflows and handle complex rules.

    But ZigZag’s Achilles’ heel is that it’s “software first, logistics second.” For U.S. brands in particular, that means think twice if you need a turn-key reverse-logistics network. If you need a peer-to-peer drop-off model, automated in-country returns hubs, or native FedEx/UPS support, ZigZag alone may not suffice. Alternatives like Cahoot are emerging to fill exactly that gap: Cahoot uses a peer-to-peer returns model with drop-off at UPS Stores and real-time product scanning, which can dramatically cut return shipping and restock time. In contrast, ZigZag leaves on-the-ground execution to your carriers or 3PLs.

    Consider ZigZag if: You’re a midsize-to-large e-tail brand (especially on Shopify, BigCommerce, or Magento) that ships internationally and wants a rich, automated returns portal. Your team is comfortable managing carriers and fulfillment. You want granular control of return policies and the data that comes from returns. (Its prosperity comes from structure and software; it’s great at “tidying up” returns once they’re in the system.)

    Look elsewhere if: You need a built-in U.S. network. If 90% of your returns are domestic and you want drop-off or product scanning, platforms like Cahoot or ones with carrier-partner networks might serve you better. Also, reconsider if you rely heavily on FedEx/UPS labels (ZigZag doesn’t natively generate those) or if you run on a non-mainstream ecommerce platform.

    Bottom line: ZigZag Returns is a powerful returns software; it can streamline refunds, exchanges, and customer communications much better than doing it all manually. But it doesn’t deliver logistics services out of the box. In our view, it’s best for ambitious brands that want a unified digital portal and can handle the physical bits themselves. If you seek a more self-contained US-focused logistics solution, that’s when newer “peer-to-peer” tools (like Cahoot) come into play.

    Frequently Asked Questions

    Is ZigZag Returns a good fit for U.S.-based ecommerce brands?

    It depends. ZigZag offers strong return automation software and a branded customer portal, but its logistics network is more Europe-focused. U.S. brands may find gaps in carrier options (limited FedEx/UPS support) and no domestic drop-off or product scanning infrastructure.

    Does ZigZag provide its own return logistics services?

    No. ZigZag is a returns management platform, not a logistics provider. It integrates with carriers and lets you upload prepaid return labels, but it doesn’t own a return hub or drop-off network in the U.S. Physical fulfillment and reverse logistics are handled separately.

    How easy is it to integrate ZigZag with Shopify or BigCommerce?

    For Shopify, it’s a smooth experience; ZigZag has a native app that’s easy to install. BigCommerce and Magento also have connectors, but custom platforms or complex tech stacks may require API work and developer involvement.

    Can ZigZag help reduce returns or just process them?

    ZigZag focuses more on managing returns than preventing them. It helps brands retain revenue via store credit or exchanges, but doesn’t include fraud prevention, return reason analysis, or pre-return nudges like some newer platforms do.

    What are ZigZag’s key limitations for scaling brands?

    Scalability isn’t the issue; it’s more about what the platform doesn’t cover. Lack of peer-to-peer returns, limited native U.S. carrier support, and no local return hubs can leave operational gaps for large or fast-growing American brands.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Return Prime Returns Management Solution: Advantages and Disadvantages

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    The Shopify app store is jam-packed with return tools promising smoother customer experiences and higher revenue retention. One of those players is Return Prime, a returns management platform that positions itself as simple, affordable, and merchant-friendly. Beyond just being listed in the app store, Return Prime is part of the broader Shopify ecosystem, a network of integrated platforms and services that enables merchants to leverage existing tools, expand internationally, and enhance their offerings. It’s got decent traction, a footprint in both Western and emerging markets, and a Shopify rating north of 4.9 stars. Sounds great, right?

    But under the surface, things get a little more nuanced. While Return Prime checks a lot of boxes, it leans more toward a lightweight tool than a robust infrastructure partner.

    Let’s break down where Return Prime delivers on its promise and where it leaves brands guessing.

    What Return Prime Does Well

    Return Prime is a growing returns management tool built for Shopify, WooCommerce, Magento, and other ecommerce platforms. Based in India, it’s gotten traction among DTC brands in fashion, electronics, and wellness, especially those looking for global-friendly returns tools at a budget-friendly price point. The company continues to grow and expand its reach, supporting more merchants and increasing its influence in the ecommerce ecosystem. This growth is reflected in its expanding product offerings and merchant base.

    Return Prime promises to streamline return logistics and automate exchanges, refunds, and store credits, all through a branded, no-code portal. For brands operating internationally or with a physical + digital presence, it feels modern and flexible. Return Prime helps ecommerce businesses streamline their returns and exchanges, making operations more efficient.

    1. Solid Shopify Integration

    Return Prime was built from the ground up for Shopify and Shopify Plus, offering seamless integration with any Shopify store. Setup is quick, the portal lives on your domain, and it supports exchanges, refunds, and store credit, without needing to hop into multiple apps or dashboards. Return Prime is one of the better-behaved tools when it comes to not bloating your tech stack, and users consistently praise its lightweight UX and easy onboarding.

    2. Exceptional Customer Support

    If there’s one thing merchants rave about, it’s Return Prime’s customer service. The support team is known for its responsiveness and helpfulness, ensuring that merchants receive quick assistance whenever needed. Live chat, quick resolutions, and proactive outreach from the team, who are experts in their field and take a proactive approach to assisting merchants, are the norm, not the exception. Plenty of reviews mention the founder himself jumping in to help. This level of hands-on support is rare and earns the platform serious credibility with small to mid-sized brands.

    3. Flexible Return Options

    Return Prime lets customers request a refund, exchange, or store credit directly in the portal, and brands can customize return rules and exchange rules per product, policy, or region to streamline the returns and exchanges process. For example, you can exclude final sale items, control exchange eligibility, or configure automated store credit amounts. The portal also supports multi-language options, a plus for international brands.

    4. Affordable for SMBs

    Compared to big-name platforms like Loop or Happy Returns, Return Prime comes in cheaper. Paid plans start around $20/month, scaling with volume and features. That’s music to the ears of early-stage brands that need to offer a return solution without eating into margin. No fancy hardware. No add-on costs for scanning or item condition verification; these features are free for users. Just software.

    5. Global Carrier Support

    Return Prime plays nice with a number of shipping carriers, including Shippo, Shiprocket, EasyPost, and AfterShip. That makes it attractive for brands operating in India, APAC, Latin America, or Europe, where carrier diversity is essential and where Return Prime is expanding its international presence. Plus, Return Prime has started building a network of regional 3PL partners and offers localized RMA workflows.

    Where It Gets Complicated

    1. Limited Innovation in Reverse Logistics

    While Return Prime is a clean solution for front-end return requests, it doesn’t offer reverse logistics infrastructure of its own. There’s no drop-off network, no inspection services, no fraud checks at handoff. It’s pure-play software, and merchants are responsible for shipping, warehousing, and product disposition, a manual process that can be time-consuming and complex. For brands scaling globally, this can quickly become a bottleneck.

    2. Basic Automation

    Yes, you can customize policies and auto-approve certain return types, but Return Prime lacks AI-driven routing or machine-learning decision trees that power more advanced tools. It’s smart, but not intelligent in the way some enterprise-grade competitors are. If you’re managing thousands of returns a month, you’re going to want more firepower. Advanced automation could significantly improve the efficiency and effectiveness of your returns management.

    3. Exchange Limitations

    Product exchanges in Return Prime work well, but variant-level suggestions, AI-driven upsell logic, or in-stock alternatives are mostly missing. Without these features, you miss the opportunity to boost revenue by converting more returns into exchanges. Return Prime is doing better than most at this price point, but it’s not a conversion engine. If your CX team’s goal is to save the sale, it might leave you short.

    4. Not Built for Complex Brands

    Return Prime was built with ease of use in mind, but that also means tradeoffs. Enterprise users or multi-warehouse brands might find the system lacks deep integration flexibility, especially if you’re using a custom OMS, ERP, or non-Shopify storefront. Some advanced API use cases will require workarounds or developer help, particularly when integrating order management systems for handling shipping, tracking, and processing returns within the overall order lifecycle.

    5. Reliant on External Logistics Partners

    Return Prime is increasingly partnering with 3PLs and shipping platforms, but these aren’t always native or tightly integrated. Merchants looking for a single, unified system may end up having to manage those integrations independently or via manual processes, which can complicate the overall returns process for merchants.

    What’s Missing

    Return Prime isn’t pretending to be everything. It’s not a 4PL. It’s not building locker networks or peer-to-peer returns. And it’s not leading the charge in AI, sustainability, or smart automation.

    That’s not a dealbreaker, but it does highlight what’s missing: no built-in verification step, no way to consolidate international returns locally, and no embedded fraud prevention layer at the return source. Return Prime focuses mostly on the policy and software experience, not physical returns movement or logistics orchestration.

    Other missing features include the automated generation and assignment of return labels, tracking when items are received and when customers receive refunds, determining which items are eligible for returns and exchanges, capturing detailed return reasons and reasons for returns, supporting seamless management of returns and exchanges, enabling shoppers to bring items to drop-off locations, outlining expected procedures and charges, providing performance insights for return management, offering a self-serve portal to serve shoppers, and highlighting how other platforms have helped merchants address these gaps.

    Verdict: Simple, Friendly, but Not Full-Service

    Return Prime is a smart choice for small and mid-sized Shopify brands looking for a clean, cost-effective way to manage returns, refunds, and exchanges. If you’re primarily selling in one region and your volume is manageable, you’ll love the speed, support, and simplicity, all of which contribute to a better customer experience.

    But for brands with growing international footprints, complex reverse logistics needs, or fraud concerns, Return Prime may not go far enough. It’s not built to manage returns infrastructure, optimize cost per return, or route items dynamically across warehouses.

    That’s why more advanced solutions like Cahoot’s peer-to-peer returns are stepping in to fill the gap with real-time item scanning and machine-led triage that helps brands manage returns at scale.

    Return Prime is good software. But it’s not a full system.

    Frequently Asked Questions

    Who is Return Prime designed for?

    Return Prime is ideal for budget-conscious Shopify merchants, especially in India, Southeast Asia, and emerging markets. It’s built for ease of use and quick setup rather than enterprise-grade complexity.

    Does Return Prime offer a returns logistics network?

    No. Return Prime provides return management software but doesn’t own or operate a logistics network. Merchants are responsible for carrier integration, warehousing, and item restocking, or must set up third-party solutions themselves.

    Can Return Prime handle product exchanges automatically?

    Partially. It supports basic exchange workflows, but it lacks advanced features like AI-powered upsell suggestions, variant substitution, or real-time inventory checks for personalized exchanges.

    What customer support options does Return Prime offer?

    Return Prime has an excellent support reputation. Many merchants praise their 24/7 live chat and responsive service, which includes direct access to the founders in some cases. This is a strong differentiator in their favor.

    How does Return Prime stack up against platforms like Cahoot?

    Return Prime is software-only; it doesn’t handle physical logistics. Platforms like Cahoot integrate digital return tools with real-world logistics, including peer-to-peer item routing, scanning at return hubs, and faster resale/relist workflows. Merchants should choose the platform that best aligns with their return management and logistics requirements.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

    Cahoot P2P Returns Logo

    Turn Returns Into New Revenue

    Convert returns into second-chance sales and new customers, right from your store