An RMA, or return merchandise authorisation, is a reference issued before a customer sends an item back. Its function is identification: a parcel arriving without one has to be matched to an order by hand, and until it is matched it cannot be refunded, restocked or written off. Unidentified returns are the ones that sit in a corner for weeks.
In more detail
The process exists to solve a receiving problem rather than a policy one. Whatever your returns policy is, a parcel that arrives with no reference is work: somebody has to open it, guess the order, and check whether a refund is owed.
It is also where returns fraud is caught, or not. Without a reference issued in advance, you have no record of what was expected back, so an empty box or a substituted item is difficult to challenge.
For a small store the mechanic can be simple. A reference, the order it belongs to, what is coming back and why, and a window it is valid for. Software is optional; the reference on the outside of the parcel is not.
Where people get it wrong
- Not requiring the reference on the outside of the parcel, which is where it has to be visible to be useful.
- No expiry. An open-ended authorisation turns up nine months later.
- Not recording the reason, which is the only way returns data tells you anything about products.
- Refunding on receipt without inspection for categories where substitution is a real risk.
Common questions
What should an RMA number carry?
The original order, the specific items expected back, the reason for return, and a validity window. That is enough to identify the parcel on arrival and decide the refund.
Do small stores need an RMA process?
Any store receiving returns needs some way to identify a parcel on arrival. Without one, each return becomes a manual investigation and unidentified parcels accumulate.
Why record the reason for return?
Because it is the only route to the underlying problem. A pattern of returns on one product is almost always a description, sizing or delivery-estimate issue rather than a product-quality one.