Returns are the most complicate and intricate part of businesses the volume of returns is growing for many organisations – mainly due to the e-commerce revolution. Alarmingly, much of returns for many firms is for just one item at a time, which makes return process more complex and costlier than other process.

Following are major reasons of returns

1. Damaged products delivered – products will be damaged either due to poor packaging or due to improper handling in transport
2. Wrong products delivered – wrong products might be delivered due to inaccurate picking and shipping by warehouse or mismanagement in transport
3. Customer did not like product – this type of return is more prevalent in eCommerce industry, as orders are placed online, without looking at product.

The first thing in warehouse after returns receipt is inspection. Basis inspection or verification of product following actions are taken

1. Return to stock
2. Repair and return to stock
3. Return to supplier
4. Refurbish and sell on another platform
5. Liquidation

The complexity around handling returns mandates the following rules:

1. When customers return goods, they should seek, and be given Return Management Authorisation, which outlines what is being returned and why.
2. All returns must be traceable, to their order, document and invoice.
3. All credits must be system-recorded together with reasons why the goods are returned.