Returns
Reverse logistics for ecommerce: how returns are authorized, shipped, graded, and resold, and how brands control their cost.
Box-Free ReturnsA return method in which the customer brings an unpackaged item and a QR code to a drop-off location, where staff pack, label, and ship it back on the brand's behalf.Cost per ReturnThe total cost of handling one return, including return shipping, receiving and inspection labor, repackaging, refund processing, and lost value from items that cannot be resold at full price.DispositionThe decision on what happens to a returned item: restock as new, sell as open box, refurbish, liquidate, recycle, or destroy.Exchange-First ReturnsA returns flow that offers an exchange, such as a different size or color or store credit, before offering a refund, so revenue stays with the brand.LiquidationThe bulk sale of returned, excess, or unsellable inventory to resellers or liquidators at a steep discount, typically by the pallet or truckload.RecommerceThe resale of used, returned, or refurbished products, either through a brand's own resale channel or through marketplaces, instead of liquidating or discarding them.RefurbishmentThe process of cleaning, repairing, testing, and repackaging a returned or used product so it can be resold, usually labeled as refurbished or renewed.Restocking FeeA charge deducted from a refund to cover the cost of processing a returned item.Return FraudThe abuse of a return policy to obtain money or goods dishonestly, such as returning stolen, used, or swapped items, claiming empty boxes, or returning items never bought.Return GradingThe inspection step that assigns a returned item a condition grade, such as new, like new, open box, damaged, or unsellable, which then determines its disposition.Return LabelA shipping label used to send a product back to a brand or its warehouse, either included in the box, emailed on request, or generated through a returns portal.Return Merchandise AuthorizationRMAAn approval number or record issued before a customer returns an item, used to track and process the return.Return Reason CodeA standardized code that records why a customer returned an item, such as wrong size, damaged, not as described, or changed mind, captured at return initiation or inspection.Return to VendorRTVThe process of sending defective, damaged, or excess inventory back to the supplier or manufacturer for credit, repair, or replacement under the purchase agreement.Return WindowThe period after delivery or purchase during which a customer may return an item for a refund, exchange, or credit under the brand's return policy.Returnless RefundA refund or replacement issued without asking the customer to send the item back, used when return shipping and processing would cost more than the item can be recovered for.Returns ConsolidationThe practice of collecting many individual returns at a drop-off point or hub and shipping them together in bulk to the brand or its warehouse instead of one parcel at a time.Returns PortalA self-service web page where customers start a return or exchange, choose a reason and return method, and receive a label or drop-off code without contacting support.Reverse LogisticsEverything involved in moving goods from customers back to the brand, including return shipping, inspection, restocking, refurbishing, recycling, and disposal.WardrobingA form of return abuse in which a customer buys an item, uses it briefly, such as wearing clothing to an event, and then returns it as unworn for a full refund.