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Glossary

What is a return merchandise authorization?

Published on: September 1, 2023

Updated: February 24, 2024

A Return Merchandise Authorization (RMA) is a slip or number that can be provided by a retailer to permit the return of a purchase. This allows a customer to receive a refund, replacement, or store credit.

How does a return merchandise authorization work?

Self-service returns portal - how does a return merchandise authorization work

It is important to provide a return process that is easy for customers to understand and that ensures high-quality customer service. A return policy should be stated on a brand’s website so that customers can find it when they are trying to return a purchase, Brands should also make sure the return process can be initiated easily from the brand’s website or app.

Then, a return merchandise authorization can be assigned by the customer service department. This form will list policies regarding the return and any special instructions on how to package and ship the product back to the retailer. It helps businesses assess customer satisfaction with products that are commonly returned. There are cases where the return merchandise authorization form is included within a package when it is shipped out. Although, more retailers are shifting away from this method due to the need to be more environmentally friendly. Not only is it better for the environment to not include a piece of paper that a large number of shoppers will not use, but it also saves retailers money on printing and generating those labels.

How can a retailer improve their returns process?

omnichannel returns offerings - improving the returns process

Retailers can improve their returns process by leveraging a returns management software, like parcelLab. Returns management software enables retailers to streamline the returns process to help create a better customer experience. By transforming the returns process from paper to digital, retailers unlock new opportunities for their business. It also helps retailers gain a better understanding of why certain products are being returned, so their team can choose to improve the item or put processes in place that will help reduce the number of returns they receive.

Retailers should look for software that has the flexibility to adapt to their specific needs and be leveraged by returns, ecommerce, and marketing teams. Each team should see benefits such as:

  • Returns team: Gain the ability to leverage personalized experiences such as multi-shipment returns or content specific to returns reasons.
  • Ecommerce: Access returns reasons data faster, update product information sooner, suggest product alternatives, and prevent future returns.
  • Marketing: Target returning customers with personalized campaigns and set up unique retargeting ads on returns tracking based on the return reasons selected.
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In fact, retailers that use parcelLab’s platform experience a 10 percent increase in customer retention and an 87-90 percent consumer self-service adoption when they leverage the returns portal. This is due to the level of personalization that parcelLab empowers retailers to use. Retailers can map personalized returns journey experiences for all customer segments, adding eight or more personalized touchpoints that maximize repeat purchases and potentially prevent future returns. Consumers can effortlessly register returns, get a label or QR code, and track returns with a timely communications journey offered through our platform.

Frequently Asked Questions

What is a Return Merchandise Authorization (RMA)?

A Return Merchandise Authorization (RMA) is a system used by retailers and manufacturers to manage product returns. It involves issuing a unique identifier to a customer wishing to return a product, which helps in tracking the return process and ensuring proper handling.

How does the RMA process work?

The RMA process typically starts with the customer contacting the retailer or manufacturer to request a return. If the return is approved, an RMA number is issued. The customer then returns the product with this number, which is used to track the return and process any refunds or replacements.

Why is an RMA system important for businesses?

An RMA system is important because it streamlines the return process, making it more efficient and manageable. It helps businesses keep track of returns, reduce errors, and improve customer satisfaction by ensuring that returns are handled promptly and correctly.

Can an RMA system help in reducing return rates?

Yes, an RMA system can help in reducing return rates by providing clear guidelines for returns and ensuring that only eligible products are returned. It can also identify patterns in returns, allowing businesses to address underlying issues and improve product quality or customer service.

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