Not every product that leaves a warehouse stays sold. Returns management is the set of processes for receiving, inspecting, dispositioning, and administratively closing products that customers send back.

Activities include authorizing returns, providing labels, inspecting condition, restocking, refurbishing, liquidating, or disposing of items, and issuing refunds or replacements. Policy clarity and fast processing protect both customer goodwill and product value.

High return rates in categories such as apparel make returns management a major cost center. Data from returns also feeds quality and merchandising improvements. Treating returns as a designed process rather than an exception reduces leakage and delay.

• Process for handling products returned by customers
• Covers authorization, inspection, and disposition
• Affects cost, service, and product recovery value
• Provides feedback for quality and assortment decisions