eCommerce Returns Management
This is Chapter 11 of 13 in our eBook on eCommerce Fulfillment for 3PL Warehouses. See the link below to download the full ebook.
Returns Management, also known as Reverse Logistics, is another value-added service that the warehouse may handle for an eCommerce client. There are various Returns Management programs that a warehouse can establish. Some warehouses process all returns for all sales channels for a retailer or manufacturer. Others may only manage returns for the orders that they originally shipped.
The retailer or manufacturer may issue an RMA (Return Merchandise Authorization) to the customer and typically a return shipping label. The retailer/manufacturer may electronically send an advanced EDI notification to the warehouse informing of any inbound returns.
Once a return has been received, products go through a Quality Control inspection process. Depending on the reason for the return and the product condition, a disposition code is assigned to the product indicating whether the product should be:
• Repackaged
• Refurbished back into regular stock condition for re-shipping
• Discarded / Thrown Away / Destroyed
• Returned back to Supplier
• Held in quarantine for further instructions
At a base level, returns management can be viewed as just another channel for inbound inventory, as many aspects may function like a receipt of inventory. The key differences are that the product will come in at a lower volume, it will require inspection, and the WMS software can aid in connecting the return to an original order to improve reporting back to the client.
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