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Due to the so-called distance selling business, returns processing describes several processes for the return of goods ordered online. They are processed and handled by the distribution center in accordance with the customer’s specifications.

Looking at returns processing as a whole, the process begins with the intention to send ordered and received goods back to the sender. The challenge here is the right of withdrawal. It allows the purchaser/customer to return the goods to the retailer even if they have been used. This is one reason why the assessment of goods (see practical example) is standard for most processors.

Countless processes are necessary to guarantee the proper return of goods. The spectrum of the individual distribution centers ranges from checking the return directly at goods receipt using scanner recording, sortingand further processing to issuing credit notes or shipping replacement goods. Refunding the purchase price is also common practice in e-commerce. However, it is only released via a separate commercial system after the aforementioned check and completed by bank transfer.

Practical example of returns processing: Each individual parcel is first unpacked and prepared for goods assessment. Each individual item is then identified at a computerized workstation using the barcode on the packaging and finally unpacked. The goods must be checked precisely and individually. Are the goods still as good as new? Does it need to be cleaned or ironed if necessary? If, for example, an item of clothing can be resold, it is packed in exactly the same way as it was previously packed (ready for dispatch).
Due to the high volume of returns, department stores/warehouses have developed additional departments that exclusively handle returns. They require additional space, which is often not available. In this case, so-called fulfillment providers can help by taking over the handling of returns in addition to general logistics. With a shipping capacity of 150,000 items per day, the additional costs for returns amount to one million euros or more per month.

RMA process Due to the high volume of returns, companies today rely on the RMA process. It guarantees a structured and personalized return of goods. Before the goods arrive at the distribution center, they are subjected to a quality check via remote diagnosis (questionnaire, e-mail communication).

You can find out more about this topic in the article Cost trap returns: 19 euros per return and in the Logistics KNOWHOW article Returns.

Image source: © Stefan Rajewski – Fotolia.com

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