There are a growing number of Chinese companies selling in the U.S. on online marketplaces such as Amazon and eBay. And there’s a startup that specializes in processing returned items for them.

That company is Freshingstock.com, and it predicts it will handle 1 million packages this year, nine times more than it processed in 2015. That reflects the growing activity of Chinese companies on U.S. e-commerce sites: Amazon, for example, has said the sales of Chinese sellers on Amazon sites around the world doubled in 2015.

For Chinese sellers that don’t have their own fulfillment centers in the U.S., returns can be a big headache.

“Before, we had to ship those returned products back to China,” Patrick Zhang, founder and CEO of electronics retailer Shenzhen StarMerx Technology Ltd., tells Internet Retailer. “Besides the shipping costs, we also had to cover the duty tax for shipping goods into China For low-value returned products, like small accessories, the only thing we could do was to discard them, even though we know 70% of them were returned only because of customer misuse or buyer’s remorse.”

Zhang says Freshingstock has cut his cost of handling U.S. returns by about 40%.

Some items are returned even before U.S. consumers receive them, says Forrest Guo, founder and CEO of Freshingstock. He says about 70% of Chinese companies selling on Amazon use Fulfillment by Amazon, letting Amazon.com Inc. warehouse their goods and arrange delivery to buyers. Sometimes Amazon returns goods sent to FBA warehouses because of such errors as products that don’t match their description, products lacking necessary labels or items delivered to the wrong warehouse.

“Our business is to help global merchants on Amazon solve those issues,” Guo tells Internet Retailer. “90% of our clients are Chinese merchants.”

Freshingstock employs about 20 workers and operates a 110,000-square-foot warehouse in the Pittsburgh area designed for handling returns.

“Most of our clients are middle to small-size merchants that don’t have a facility in U.S.,” Guo says. “But we do have large clients because we can process return in a more efficient way. Our warehouse and computer systems are designed for returns, so we can examine and even repair returned goods quickly.”

He says his largest client has contracted for Freshingstock to handle 400,000 returns this year. He did not disclose the client company’s name.

After checking goods and repairing them when necessary, Freshingstock helps merchants re-list products on Amazon or sell slightly defective but still working items as used products in other channels.

“For products with serious quality issues, we will sell to liquidation companies that often buy products at between 10% and 30% of the original price,” Gao says.

For more information about the Chinese market, please click here for the Internet Retailer 2016 China 500.