Return Merchandise Authorization (RMA)

The flow of content:

What is RMA?

Why do you need an RMA?

RMA System Allows You to Assess the Condition of the Product in Question

Process Refunds ASAP

Information Collection is Important to Figure Out Why The Customer is Returning the Order

Use the Information Gathered Through RMA to Enhance Your Perfect Order Percentage

Conclusion

Not every ecommerce company likes returns. In fact, nobody likes returns because it is costly and time-consuming. However, to stay in the cut-throat competition and ensure high standards of order management, companies have to provide an option to return or replace the products. RMA return merchandise authorization is a system in order management that helps the ecommerce companies to carry out the return process in a more convenient manner. Therefore, in the article ahead, I will explain What is RMA and why RMA should be used to manage returns.

 

What is RMA?

Return merchandise authorization (RMA), a numbered authorization offered by the seller, is a section of the process of returning or replacing a product to receive a refund, replacement, or repair during the product’s return or replacement time offered by the company.

RMA number is crucial because it is the key process as far as reverse logistics are concerned both for the seller and the buyer. The buyer has the last chance to ask for a replacement or refund if he/she is not satisfied with the delivered product. The seller has the ultimate opportunity to rectify any of his/her mistakes. 

 

Why do you need an RMA?

An RMA process hugely and positively impacts the product return process by providing an interface that encourages dialogue with the customer to deal with them and solve issues. It also empowers you to examine the situation and then process the return. You can also deny the return application if the product doesn’t come under your return or replace the criteria. 

If the customer’s claim is valid, you can accept the return and generate an RMA for the consumer, which can be attached to the package while returning the shipment to you.

Below are a few reasons that justify why RMA is necessary.

RMA System Allows You to Assess the Condition of the Product in Question

Some businesses don’t bother about the condition of the returned products and accept the returns in any situation.

However, most of the businesses don’t entertain these types of returns; they need to know the exact condition of the product so that they don’t fall prey to any of the fraudulent activities of the mischievous customers. Therefore, several RMA systems offer a portal where the seller can ask for the clear images of the product from the customers to contemplate whether the product is in good condition to be resold or not. If the product is damaged on arrival, then there is a different case, and then the company can ask for compensation from the shipping partner for the loss.

This process saves many ecommerce sellers from getting scammed. 

Process Refunds ASAP

Once the returned item is received by you or you have accepted the return, it becomes imperative for you to get the money refunded in the promised time frame. An efficient RMA system will keep track of each returned product and inform you about the pending refunds to address the refunds.

Many return management systems with RMA allow the seller to instantly credit the customer’s account as soon as the return is passed, thus allowing them to shorten the procedure flowchart.

Information Collection is Important to Figure Out Why The Customer is Returning the Order

The RMA system allows a customer to select from a list of reasons – “reasons for returns” provided by you. The list can contain all the purposes you agree to allow the consumer to return the product. This is beneficial both for you and the buyer. You come to know the exact reason for returning, and the consumer would get an opportunity to express his/her dissatisfaction. Many RMA systems are flexible enough to allow the buyer to explain the issue in their own words if they cannot find an apt reason to return. 

Moreover, this initiates an organic conversation between you and your buyer, which can help you build a strong bond even after you have messed it up the first time. The information that you gather and the dialogue that you are having will benefit you in the longer run. Things become less professional and emotional with this, and you can win back a customer who has already thought of never buying from you again.

Use the Information Gathered Through RMA to Enhance Your Perfect Order Percentage

The valid reasons given by the consumers for sending your product back should be noted. These reasons can play a significant role in improving your order fulfillment process.

You can also track an individual product’s behavior and figure out which product is returned the most and fix it. For instance, a product that may seem to be very helpful in images and descriptions on the site might not be that useful as it looks. These types of products are returned the most because consumers feel cheated.

With efficient return management software with an RMA system, you can track these types of products and change them with the product that brings more value to it.

If you track and solve the issues like frequent delivery of a damaged product, or color not matching or not as described, you will witness a drop in the number of returns.

Conclusion

As mentioned above, the RMA process is beneficial for any online seller because the returns have become very common these days. Also, according to many buyers, an excellent online seller is the one who allows them to return the products quickly without any hassles.

It won’t be wrong to say that the RMA is the backbone of return management in the ecommerce business as far as refunds are concerned.

Softwares like Orderhive are RMA compliant and provide on-demand automation to boost the return process to ease out the pressure by making the process flawless and swift.

Moreover, Orderhive also provides –

• Automated refund processing
• Workflow approvals for procedural compliance
• Multiple payment methods
• Accounting integration

 

Essential Resources

• https://flashglobal.com/blog/return-merchandise-authorization-part-i-what-it-is-and-common-policy-attributes/
• https://cerasis.com/return-merchandise-authorization/
• https://www.3dcart.com/lp/ecommerce-university/what-is-an-rma-system/