RMA

Category: Operations

Also searched as: Return merchandise authorization

Definition (plain English)

Return merchandise authorization is the controlled approval process for customer returns, replacements, inspections, or credits.

Why it matters commercially

RMA rules determine who pays freight, whether stock can be resold, how claims are evidenced, and how returns affect true margin.

Example

A distributor required photos, lot code, invoice number, and temperature evidence before authorizing returns on chilled products.

Common mistake

Accepting returns informally without reason codes, evidence requirements, restocking rules, credit limits, and supplier recovery path.

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