productreturns

Product returns refers to the process by which customers send purchased goods back to the seller or manufacturer. It encompasses consumer, business-to-consumer, and business-to-business transactions and is governed by a return policy that defines eligibility, time limits, and remedies such as refunds, exchanges, or store credits.

A typical return workflow starts with a customer initiating a return, often via an online portal or customer service. An authorization, or return merchandise authorization (RMA), is issued, the item is shipped back, and once received and inspected, the seller processes a refund, exchange, or credit. Policies specify condition requirements (unopened, undamaged), proof of purchase, and allowable return methods. Restocking fees may apply in some cases.

Common reasons include defective or damaged items, incorrect items, damaged on delivery, and buyer's remorse. Returns may be categorized as new/like-new, open-box, refurbishable, or non-returnable. Some products are exempt, such as customized items or perishable goods, depending on policy and local law.

Return handling incurs costs in reverse logistics, warehousing, and potential disposal or refurbishing. For retailers, returns affect revenue recognition, inventory planning, and customer satisfaction metrics. High return rates can indicate product quality issues, misaligned expectations, or fulfillment errors.

Best practices include transparent policies, clear eligibility criteria, easy initiation, fast refunds, and efficient inspection and restocking. Data collection on return reasons helps identify product or service issues. Sustainable approaches prioritize refurbishing, recycling, or donation where feasible.

Regulatory considerations vary by jurisdiction but commonly require refunds for defective goods and protect consumer rights. Privacy considerations apply to return-related data and accounts.