Last month, Seller A sent 200 garments to Saudi. The buyer refused delivery, the local courier couldn't find a return address, so the goods were shipped all the way back to China. Each unit cost $45 in freight and duties — a total loss of $9,000. All of it was avoidable.
Return rates in the Middle East are higher than in the West. In my experience, UAE averages 15%, Saudi sits at 20-25%. COD orders are worse — rejection can hit 30%. Without a return plan, you are just burning profit.
There are three cost holes: local return freight, warehouse handling, and return shipment to China. Handling a return locally and re-shelving it costs $3-5 per order. Sending it back to China? Ten times that.
For example, rent a 100 sqm mini-warehouse in Saudi for about $1,500/month. Process 500 returns per month, and the per-unit storage+handling cost is under $5. Compare that to return airfreight at $6-8/kg — a 0.3 kg garment plus customs clearance easily exceeds $15.
Actionable tips: First, on every COD order, force the buyer to enter a local mobile number. If rejection happens, your logistics provider can call and arrange a second delivery attempt. Second, lease one small return warehouse each in Saudi and UAE (50-100 sqm) dedicated to sorting returned items. Third, negotiate a "return bundle" with your freight forwarder: fixed monthly fee covering 300 returns, extra orders at $3/unit. I have negotiated as low as $2.8.
Also watch the customs rules. Saudi ZATCA new regulation this June: if returned goods are not processed within 180 days, they charge 15% VAT on the import value. Even if the goods just sit in your warehouse, you get taxed.
So, how many return options do you have right now? If the only one is "ship back to China," half your profit might already be leaking.