Returns
Returns Management in Germany
Cut Costs - Save on Shipping, Customs and Administrative Costs
EuroTrade Gateway UG (ETG) operates a central warehouse in Germany with daily parcel reception from all major freight forwarders and delivery services. Returned parcels are consolidated and processed in bulk, offering a cost-effective solution for small and medium-sized enterprises (SMEs) managing between 1 and 100 returns per month. While manual handling in Germany comes at a price, the savings are significant: reduced shipping costs, simplified customs procedures, and fewer administrative burdens. For businesses based in so-called third countries (outside the EU or EEA), processing returns within Germany allows quicker restocking, lower capital lock-in, and in some cases, tax advantages within international supply chains.
Our Classification - 4 Grades
Each returned product is carefully inspected and classified by EuroTrade Gateway UG into one of four categories:
Category A includes items in perfect, like-new condition—over 80% of all returns fall into this category and can be immediately resold.
Category B covers slightly used or cosmetically flawed items (e.g., damaged packaging) that require minimal handling before resale.
Category C includes goods that can no longer be sold as new but are still functional. Depending on the client’s brand strategy, they can be sent back to the manufacturer, resold at a lower price, or refurbished. Refurbishing is possible with prior agreement.
Category D includes products that are no longer sellable. ETG handles proper disposal, including any required recycling fees. This structured grading enables merchants to make informed decisions, reduce losses, and optimize recovery from returned goods.
For each category the clients may decide how the collect goods are treated, e.g., to which adres they are shipped. Individual shipping for each parcel, especially for categories A and B as part of Repaackinmg and Relabeling is possible.
Relabeling and Recommerce
Categories B and C offer excellent opportunities for recommerce. ETG supports clients in repurposing these items for secondary markets, including outlet stores and discount channels. By leveraging ETG’s classification and processing system, SMEs can reduce storage costs, generate additional revenue, and minimize waste. The recommerce path is particularly valuable for international sellers, allowing them to capitalize on returns rather than incur high reverse logistics costs to their home markets.
Attention! Selling goods from stock in Germany requires a VAT registration in Germany. Even stock of returns which are not forwared outside the EU but sold inside qualify as stock. Recommerce in Germany and avoiding a VAT registration is a contratdiction!
Bulk Forwarding
ETG provides monthly bulk forwarding of categorized returns (especially B and C grades) to designated warehouses, fulfillment centers, or end-customers within the EU or beyond. This service dramatically lowers shipping expenses, avoids individual customs declarations, and reduces administrative workload. Particularly beneficial for non-EU merchants, this approach streamlines return logistics while maintaining compliance with European regulations. ETG ensures transparent handling, timely shipments, and full documentation for all bulk forwarding operations.