{"id":550,"date":"2021-03-23T08:04:17","date_gmt":"2021-03-23T08:04:17","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=550"},"modified":"2022-12-22T10:13:48","modified_gmt":"2022-12-22T10:13:48","slug":"return-merchandise-authorization-rma","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/","title":{"rendered":"Return Merchandise Authorization (RMA) &#8211; Managing Product Returns"},"content":{"rendered":"\n<p>Return Merchandise Authorization or RMA is a systemic approach to handling product returns. It allows for better tracking, makes the processes quicker, and could thereby improve customer satisfaction.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"562\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-rma-1024x562.jpg\" alt=\"return-merchandise-authorization-rma\" class=\"wp-image-7686\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-rma-1024x562.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-rma-300x165.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-rma-768x421.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-rma.jpg 1502w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Return Merchandise Authorization (RMA) \u2013 Managing Product Returns\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=s852n-101f3d7-pb&amp;from=pb6admin&amp;download=1&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1&amp;btn-skin=3\"><\/iframe>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/#What_is_Return_Merchandise_Authorization_RMA\" >What is Return Merchandise Authorization (RMA)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/#How_does_Return_Merchandise_Authorization_RMA_work\" >How does Return Merchandise Authorization (RMA) work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/#Return_Merchandise_Authorization_RMA_types\" >Return Merchandise\nAuthorization (RMA) types<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/#Using_Return_Merchandise_Authorization_RMA_software\" >Using Return Merchandise\nAuthorization (RMA) software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/return-merchandise-authorization-rma\/#Key_takeaways\" >Key takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Return_Merchandise_Authorization_RMA\"><\/span>What is Return Merchandise Authorization (RMA)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Handling product returns is a part of many manufacturers\u2019 day-to-day activity. For example, customers might want to return goods that are faulty or broken, do not match the description or their expectations, that have been sent to them by error (e.g. wrong product or size), or that are not needed (e.g. if someone got the same product twice).<\/p>\n\n\n\n<p>Return Merchandise Authorization or RMA is a returns management mechanism that manufacturers and vendors use in order to track return requests, expedite the return processes, and to diagnose and solve problems with products before compensating them to the customer. It is also an important factor in detecting return fraud.<\/p>\n\n\n\n<p>The information gathered within a Return Merchandize Authorization system allows companies to compile statistics and use them to see return-related trends, to improve the quality of their products, to avoid inaccuracies in order fulfillment, and to prevent further returns. Professionally handling product returns also has a direct impact on a company\u2019s customer satisfaction.<\/p>\n\n\n\n<p><em>Learn also about the <a rel=\"noreferrer noopener\" aria-label=\"Cost of Quality (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/cost-of-quality\/\" target=\"_blank\">Cost of Quality<\/a>.<\/em><\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Easily process returns and repairs with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_Return_Merchandise_Authorization_RMA_work\"><\/span>How does Return Merchandise Authorization (RMA) work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It all starts with phrasing a clear return policy detailing the situations where customers can put in requests for product returns, as well as the process of doing it. After that, Return Merchandise Authorization is basically backward logistics. Instead of getting a customer order and fulfilling it according to the requirements, a company receives a return request and gets the product back. Then they need to make sure what was wrong with the product and what kind of action the return requires. These are the general steps you must take when processing a return:<\/p>\n\n\n\n<p><strong><em>Step 1<\/em><\/strong> \u2013 When a customer puts in a\nrequest for a return, a new RMA order needs to be created that would allow you\nto track any action taken regarding the specific return.<\/p>\n\n\n\n<p><strong><em>Step 2<\/em><\/strong> \u2013 When the items are received, they\nshould go through inspection that would make sure what was wrong with the\nproduct or the order.<\/p>\n\n\n\n<p><strong><em>Step 3<\/em><\/strong> \u2013 When the results of the\ninspection are in, action should be taken accordingly. If the item should be\nrepaired, a new service order should be created; if it should be replaced, a\nnew item should be booked from stock; if it should be refunded, a credit\ninvoice should be created; etc.<\/p>\n\n\n\n<p>If a company has no clear processes defined and no special software to manage product returns, it can lead to many issues. Mainly, if there are many returns, some can fall through the cracks and get processed extremely slowly since there is no overview of the whole situation. <\/p>\n\n\n\n<p>Once the product return is processed, the replaced goods will stay in the inventory and also need to be managed properly to avoid pileups. Possibly these could be resold, recycled, remanufactured, or taken into spare parts.<\/p>\n\n\n\n<p><em>Learn also about <a rel=\"noreferrer noopener\" aria-label=\"How to Achieve Traceability in Manufacturing (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/traceability\/\" target=\"_blank\">How to Achieve Traceability in Manufacturing<\/a>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_Merchandise_Authorization_RMA_types\"><\/span>Return Merchandise\nAuthorization (RMA) types<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As\nmentioned above, there are many different ways a customer return could be\nsolved within the RMA process.<\/p>\n\n\n\n<p><strong><em>1. Credit only<\/em><\/strong> \u2013 in this case, the company gives\nthe customer a refund without them having to return the products. This is often\ndone when the Return Merchandise Authorization process would turn out to be\nmore expensive than the product itself.<\/p>\n\n\n\n<p><strong><em>2. Receipt and credit<\/em><\/strong> \u2013 the company has the customer\nreturn the products and give them a refund. This may occur when an item does\nnot meet the customer\u2019s expectations.<\/p>\n\n\n\n<p><strong><em>3. Receipt and no\ncredit<\/em><\/strong> \u2013 the\ncompany receives the products without providing the customer with a refund.\nThis could happen, for example, when a customer receives items they did not\norder (nor paid for) and returns them.<\/p>\n\n\n\n<p><strong><em>4. Receipt and\nreplacement<\/em><\/strong> \u2013 the\ncompany receives the products and provides a replacement to the customer. This\ncould occur when the customer has received a faulty item or when a wrong\nproduct was mistakenly shipped.<\/p>\n\n\n\n<p><strong><em>5. Replacement\nwithout<\/em><\/strong> <strong><em>receipt<\/em><\/strong>\n\u2013 the company provides a replacement product without receiving a return. This,\nagain, could happen when the RMA process would be more expensive than the\nproduct.<\/p>\n\n\n\n<p><strong><em>6. Repair<\/em><\/strong> \u2013 the company receives the\nproducts, repairs them, and sends them back to the customer at no extra cost.\nThis happens when the RMA inspection finds that the customer is not liable for\nthe damage.<\/p>\n\n\n\n<p><strong><em>7. Repair and invoice<\/em><\/strong> \u2013 the company receives the\nproducts, repairs them, and sends them back to the customer along with an\ninvoice for the service. This is done, for example, when the Return Merchandise\nAuthorization inspection finds that the customer is liable for the damage done\nto the product and the customer chooses the item to be repaired for a fee.<\/p>\n\n\n\n<p><strong><em>8. Reject and ship\nback<\/em><\/strong> \u2013 the\ncompany rejects the return based on the RMA inspection and ships the products\nback to the customer. This is done, for example, when the customer is deemed\nliable for the damage and chooses to get the item back.<\/p>\n\n\n\n<p><strong><em>9. Reject entirely <\/em><\/strong>&#8211; sometimes, fraudsters try to con businesses into giving them a refund without actually returning an item. A company might get a parcel tracking number from the customer and, seeing that the product is on its way back, refund it. When the package gets back, however, you might find that it is empty or <a href=\"https:\/\/www.theguardian.com\/world\/2004\/jan\/13\/germany\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">filled with potatoes, instead.<\/a> This is why every company needs to set up concrete RMA processes \u2013 to be safe from this kind of explicit return fraud.<\/p>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Improve customer satisfaction with expertly managed returns<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy allows you to easily track returns and repairs, create service orders, and manage all aspects of your business.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Using_Return_Merchandise_Authorization_RMA_software\"><\/span>Using Return Merchandise\nAuthorization (RMA) software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although you can find dedicated Return Merchandise Authorization software out there, it is advisable to use <a rel=\"noreferrer noopener\" aria-label=\"inventory management software with an integrated RMA module (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/inventory-management-software\/\" target=\"_blank\">inventory management software with an integrated RMA module<\/a>. This allows you to seamlessly manage all of the sides of the Return Merchandise Authorization process while also handling the inventory part of it along with all of the other aspects of running a manufacturing or a distributing business. <\/p>\n\n\n\n<p>It keeps track of the return from the initial request and issuing of an RMA number through inspection and the solution. It helps with creating service orders, booking replacement goods, tracking inventory of returned items, and creating shipping documents and invoices for repairs or refunds, when necessary.<\/p>\n\n\n\n<p>An ERP or <a href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">MRP system<\/a> with a built-in RMA module will provide you with an overview of your RMA requests and expedite the processes, thereby improving your customers\u2019 overall return experience. And a good return service might even convince a dissatisfied customer to come back to you.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"395\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software-1024x395.png\" alt=\"return-merchandise-authorization-software\" class=\"wp-image-7688\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software-1024x395.png 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software-300x116.png 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software-768x296.png 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2021\/03\/return-merchandise-authorization-software.png 1075w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption><strong>Managing product returns is made easy in modern ERP systems.<\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Return Merchandise Authorization is a returns management mechanism that companies use to track return requests, expedite the returns processes, and to diagnose and solve problems with products before they are compensated to the customer.<\/li><li>After setting up a definite returns policy, a company can use the RMA process in order to organize the product\u2019s way back to the company, perform inspections to deem what kind of action would be appropriate, and solve the issue in a clear and concise manner.<\/li><li>A company can solve product returns in many ways: for example, by offering a refund, repairing the item, replacing it, or by rejecting the request.<\/li><li>Use an RMA software or, better yet, an ERP with an integrated RMA module in order to seamlessly manage your product returns and return inventory.<\/li><\/ul>\n\n\n\n<p><em>You may also like: <\/em><a rel=\"noreferrer noopener\" aria-label=\"What Is D2C and How to Sell Direct-to-Consumer? (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/d2c-direct-to-consumer\/\" target=\"_blank\"><em>What Is D2C and How to Sell Direct-to-Consumer?<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Return Merchandise Authorization or RMA is a systemic approach to handling product returns. It allows for better tracking, makes the processes quicker, and could thereby improve customer satisfaction.<\/p>\n","protected":false},"author":7,"featured_media":7686,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44,96,94,384],"tags":[19,58,4,66,554,555,552,556,553,557,558],"class_list":["post-550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp","category-inventory","category-tips","category-supply-chain-management","tag-erp","tag-erp-system","tag-manufacturing-software","tag-mrpeasy","tag-product-returns","tag-product-returns-management","tag-return-merchandise-authorization","tag-returns-management","tag-rma","tag-rma-software","tag-rma-system"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Return Merchandise Authorization (RMA) - Managing Product Returns<\/title>\n<meta name=\"description\" content=\"Handling returns is a common issue that many manufacturers have to deal with daily. 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