A return merchandise authorization (RMA), return authorization (RA) or return goods authorization (RGA) is a part of the process of returning a product to receive a refund, replacement, or repair to which buyer and seller agree during the product's

warranty In law, a warranty is an expressed or implied promise or assurance of some kind. The term's meaning varies across legal subjects. In property law, it refers to a covenant by the grantor of a deed. In insurance law, it refers to a promise by the ...

period.

Reverse logistics

The issuance of an RMA/RGA is a key gatekeeping point in the reverse logistics cycle, providing the vendor with a final opportunity to diagnose and correct the customer's problem with the product. The reasons for a product return vary and include improper installation by the customer or inability to configure the product. RMA/RGA comes before the customer permanently relinquishes ownership of the product to the manufacturer, commonly referred to as a return. A return is costly for the vendor and inconvenient for the customer; any return that can be prevented benefits both parties. Returned merchandise requires management by the manufacturer after the return. The product has a second life cycle after the return. An important aspect of RMA management is learning from RMA trends to prevent further returns. Depending on what the rules are, the manufacturer may send the customer an advance replacement. RMAs may be minimized in a number of ways. Adding a customer survey capability may prevent RMAs by detecting problems in advance of returns. Returns are sometimes minimized by reducing transaction errors prior to the merchandise leaving the seller. Providing additional information to consumers also reduces returns.Robert J Bowman, “From Cash to Cash: The Ultimate Supply-Chain Measurement Tool”, Global Logistics & Supply Chain Strategies, Vol. 5, No. 6, June 2001, p. 47.

Return to vendor

Return to vendor (RTV) is the process where goods are returned to the original

vendor In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these term ...

instead of the

distributor A distributor is an electric and mechanical device used in the ignition system of older spark-ignition engines. The distributor's main function is to route electricity from the ignition coil to each spark plug at the correct time. Design ...

. In many cases the RTV was originally returned to the seller by the end consumer. While RTV transactions usually occur between the seller and the vendor, in some instances the end consumer returns the product directly to the vendor, sidestepping the distributor.

References

{{refs Contract law Computer law Product return

Reverse logistics

Return to vendor

See also

References