Return to Vendor
Return to vendor (RTV) is the process of sending defective, damaged, or excess inventory back to the supplier or manufacturer for credit, repair, or replacement under the purchase agreement.
Why it matters for ecommerce brands
A return to vendor process shifts the cost of defective and overshipped goods back to suppliers instead of leaving it in your warehouse as a loss. It needs agreed terms on what qualifies, who pays freight, authorization steps, and deadlines. For example, if 2% of 50,000 units a year arrive defective at a $15 landed cost, that is $15,000 of inventory you can recover as supplier credit, but only if RTV terms are in the contract. Batch RTV items and ship them monthly to keep freight costs down.
Common questions
- What does RTV mean in a warehouse?
- RTV means return to vendor. It refers to inventory set aside to send back to the supplier for credit or replacement, usually because it is defective or over-shipped.
- Who pays shipping on a return to vendor?
- It depends on the supplier agreement. Defective goods usually go back at the supplier's cost, while excess stock returned for the buyer's convenience is often at the buyer's cost and may carry a restocking fee.
- What is a vendor RMA?
- It is the authorization number a supplier issues before it accepts returned goods. Ship RTV items only after you have one, or the supplier may refuse the shipment or delay your credit.