When was the last time when one of your customers raised a request for a return?
Really sure that it could be as early as 10 minutes back because returns are a common part of the daily life of an e-commerce brand.
But every time you see a return request raised, it becomes an extra effort for your team, both in terms of operational overhead and an extra associated cost point of view.
While brands make every effort to ensure customer satisfaction via various things such as timely delivery, and providing high-quality products, there are instances when customers may desire to return a product.
But how do you as a brand make sure the return process for the customer is seamless, and also make the tracking for this return easy at your end?
Well, the answer is a Return Merchandise Authorisation and a Return Management Software.
In this blog, we’ll understand more about Return Management Authorisation (RMA).
Let’s get into the very basics of an RMA first.
What is a Return Merchandise Authorisation (RMA)?
A Return Merchandise Authorisation (RMA) is a system that helps brands enable product returns.
An RMA is an authorisation number issued by a mail-order or e-commerce vendor, enabling customers to return a product.
Various companies implement return policies that vary. Some businesses exclusively accept returns for defective items, while others, particularly in the case of software, only permit returns for unopened products.
The customer may receive either a refund or store credit, based on the vendor's return guidelines.
In cases where a product falls outside the specified return period or warranty coverage, the return request may be declined.
Why is an RMA system important?
An RMA system has advantages across e-commerce businesses and their customers.
For D2C brands, it helps them understand the areas for product improvements.
For instance, it can update the QA team with some of the issues that arise with certain tech devices like defective components or a software malfunction, helping the team do a search for alternative suppliers.
Similarly, if a specific clothing item is generally returned by customers, the team can work on rectifying the product issues - fitting issues, shrinking, not according to the sizing chart, or something else.
By identifying areas in need of improvement, and taking appropriate action, these brands can then reduce their return rates and boost revenue.
Furthermore, an RMA system streamlines the return process, reducing inefficiencies that can otherwise consume significant time and money.
From the customer's perspective, an RMA system provides peace of mind and enhances the overall shopping experience. Knowing they can return an item if it doesn't meet their expectations increases their likelihood of making purchases from your store.
In contrast, the absence of an RMA system may make them think twice before buying the product and might lead them to competitors offering this convenience.
With all these capabilities, it’s not wrong for us to say that an RMA system,
- Enables businesses to build strong customer relationships
- Helps them foster loyalty
- Better word-of-mouth marketing
- Positive product reviews
And ultimately a better sales pipeline.
How an RMA system works
While each company has its own unique returning system, let’s understand the most basic and common steps that build up the base of an RMA below.
Step 1: Customer initiates an RMA request on the brand’s platform
The RMA process is started whenever a customer expresses dissatisfaction with a product.
The first step is for the customer to provide a reason for their return request. Brands ideally, have predefined reasons such as:
- Received a broken item
- Wrong colour
- Poor fit
- Wrong item delivered
Or something else. It’s important to understand here that a return request doesn’t always mean a refund. It also means an exchange.
In this case, if a wrong item is delivered or a wrong size is delivered, the brand might set the system to show only ‘exchange the product’ as the return option to customers.
Unfortunately, some online stores unintentionally make it difficult for customers to initiate the return by reaching out to them via phone or email, resulting in inefficiencies — These drawbacks can be eliminated with an automated process that allows customers to complete an RMA form online.
Regardless of the method used to initiate a return, this simplifies the selection process for the customer, but they should also have the option to provide additional text to offer a more detailed explanation of their return request.
It's essential for customers to specify their preferred course of action, whether it's a refund, repair, or replacement.
Step 2: The brand approves the RMA request
Not all requests for a return are approved.
While some e-commerce businesses accept all return requests, many of them also have a predefined set of rules that must be met before approving the return request.
This approval of return requests can be done manually or automatically with the help of a Return Management Software offered by Pragma that can help E-commerce businesses in India achieve a 15-20% increase in sales by offering a hassle-free returns process.
Once approved, the store lets the customer know the instructions on how to return the product.
D2C brands generally include a free shipping label with a unique RMA number.
This is the step where the brand informs the customer about their RMA number and instructs them to include the label on the packing slip, even if it's already printed on the provided shipping label.
By doing this step, easy matching of the returned item with the customer's account is then tracked properly.
Step 3: Customer’s product is received in the Store Receives
Upon the delivery of the customer's package, it becomes the store's responsibility to confirm that the item has been received.
A robust RMA system should be capable of linking the received item with the provided RMA number.
In the case of the customer mistakenly sending the wrong item, the store can then inform the customer and close the RMA.
Step 4: The store inspects the customer’s returned item
Finally, the store can now begin its investigation to examine the returned product. Brands usually have a checklist of items to be examined like:
- Is the product used or not
- Does it match the reason stated by the customer for the return
- Some identification patterns associated with specific items
- Identifying items with serial numbers for electronics/software, etc.
These checks help the QA team to pass the feedback internally and work on the product to make sure returns for similar reasons don’t happen next time.
Step 5: Store resolves the Matter with the customer
The process is now completed.
It’s the time that the store issues a refund or replacement for the defective product.
The most important aspect here is to make sure that the customer is informed about the timeliness of the return to avoid them following up or registering complaints from them again on similar matters.
An automated system in place can help perform these things without human intervention. This way your team can focus on more important tasks while the customer is also in the loop every time with timely updates.
Do You Really Need a Return Merchandise Authorisation System?
Determining whether you need a Return Merchandise Authorisation (RMA) system depends on the nature and scale of your business. But there are some of the benefits that can help a D2C brand in purchasing an RMA in their return cycle:
1. Helps D2C brands in streamlining the return process
An RMA system simplifies and enhances the return process. While it automates RMA requests, it even makes it convenient for customers to initiate returns and for brands to approve or decline them based on predefined criteria.
2. Efficiently handles item routing and item disposition
It determines the most appropriate routing and disposition of returned items. An RMA can automatically direct items to specific destinations, such as restocking inventory, routing them to quality control departments, or managing the disposal of damaged goods.
This ensures that returned items are quickly and effectively managed.
3. Automate refund procedures without manual intervention
In the above section, we talked about how it’s important for D2C businesses to quickly process refunds and how it impacts customer satisfaction.
Hence RMA solutions often incorporate features for automating the refund process, guaranteeing that customers receive their refunds promptly.
4. Informs Data-Driven Decision-Making
RMA systems offer valuable insights into the reasons behind returns and overall return patterns.
This helps the team work on the product internally and provide a better product that is built on customer feedback. This empowers businesses to build strategies that can be fed into their marketing and sales funnel.
Helping you choose among the best players in the market
With this, we’re at the end of this comprehensive guide that will help you with everything you’ll ever need to build the best Return Merchandise Authorisation for your brand.
An RMA is helpful for D2C brands, it becomes important for you to uphold your customer’s expectations, minimise return orders, and even flag inappropriate users or return queries that might be fraudulent in nature.
But trust us, managing this procedure manually becomes challenging as your platform grows and you start receiving hundreds of return requests daily.
Which is why you need a platform that can take care of the analysis of user behaviour and automatically customise the return process as well - Enters Pragma, analysing millions of return orders, right from cosmetic brands to apparel across 450+ D2C brands in India.
It’s time for you to try out Pragma’s Fully Automated Return Management System first hand!
Talk to our experts for a customised solution that can maximise your sales funnel
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