Returning
Encyclopedia
In retail
, returning is the process of a customer
taking previously purchased merchandise back to the retailer, and in turn, receiving a cash refund, exchange for another item (identical or different), or a store credit. Many retailers will accept returns provided that the customer has a receipt
as a proof of purchase, and that certain other conditions, which depend on the retailer's policies, are met. These may include the merchandise being in a certain condition (possibly being resellable), no more than a certain amount of time having passed since the purchase, or that identification be provided. In some cases, only exchanges or store credit are offered. Some retailers charge a Restocking fee
for returned merchandise.
Returning is generally offered by retailers as a courtesy to the customer. Often it causes the retailer to suffer a loss, because the merchandise, not being in sellable condition, must be sold at a discount or not at all. While retailers are not usually required to accept returns, laws in many places require retailers to post their return policy in a place where it would be visible to the customer prior to purchase.
There are various reasons why customers may wish to return merchandise. These include a change of one's mind, defectiveness of the merchandise, personal dissatisfaction, or a mistaken purchase of the wrong product. For clothing, it may be a lack of a correct fit. Sometimes, there may be a manufacturer's recall
in which the manufacturer has requested the merchandise be brought back to the store. Also, gift receipts are offered sometimes when an item is purchased for another person, and the recipient can exchange this item for another item of comparable value or store credit.
, various abuses using the return process cost retailers more than $9 billion annually.
One common practice is the use of the system in order to use it to "borrow" the merchandise at no charge. The customer who engages in this practice purchases the item for temporary use, then returns it when finished. Examples include an article of clothing worn for a single occasion, or a book that is returned after it has been read.
Another problem is when customers legitimately purchase an item, then re-enter the store with the receipt, take an identical item off the shelf, and approach the customer service desk requesting a refund. In the process, they essentially receive the item for free.
Others have been reported to print fake receipts which they use to return shoplifted merchandise for a cash refund.
An agency called The Retail Equation (formerly The Return Exchange) collects data from participating retailers via a swipe of a driver's license
. The information found on the license is collected into a database
, and other stores operated by that particular retail company can use this information to deny a return. This system can be used to prevent various problems, such as return fraud.
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
, returning is the process of a customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
taking previously purchased merchandise back to the retailer, and in turn, receiving a cash refund, exchange for another item (identical or different), or a store credit. Many retailers will accept returns provided that the customer has a receipt
Receipt
A receipt is a written acknowledgment that a specified article or sum of money has been received as an exchange for goods or services. The receipt is evidence of purchase of the property or service obtained in the exchange.-Printed:...
as a proof of purchase, and that certain other conditions, which depend on the retailer's policies, are met. These may include the merchandise being in a certain condition (possibly being resellable), no more than a certain amount of time having passed since the purchase, or that identification be provided. In some cases, only exchanges or store credit are offered. Some retailers charge a Restocking fee
Restocking fee
In retail, returning is the process of a customer taking previously purchased merchandise back to the retailer, and in turn, receiving a cash refund, exchange for another item , or a store credit...
for returned merchandise.
Returning is generally offered by retailers as a courtesy to the customer. Often it causes the retailer to suffer a loss, because the merchandise, not being in sellable condition, must be sold at a discount or not at all. While retailers are not usually required to accept returns, laws in many places require retailers to post their return policy in a place where it would be visible to the customer prior to purchase.
There are various reasons why customers may wish to return merchandise. These include a change of one's mind, defectiveness of the merchandise, personal dissatisfaction, or a mistaken purchase of the wrong product. For clothing, it may be a lack of a correct fit. Sometimes, there may be a manufacturer's recall
Product recall
A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence and to improve or avoid damage to publicity...
in which the manufacturer has requested the merchandise be brought back to the store. Also, gift receipts are offered sometimes when an item is purchased for another person, and the recipient can exchange this item for another item of comparable value or store credit.
Fraudulent returns
In the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, various abuses using the return process cost retailers more than $9 billion annually.
One common practice is the use of the system in order to use it to "borrow" the merchandise at no charge. The customer who engages in this practice purchases the item for temporary use, then returns it when finished. Examples include an article of clothing worn for a single occasion, or a book that is returned after it has been read.
Another problem is when customers legitimately purchase an item, then re-enter the store with the receipt, take an identical item off the shelf, and approach the customer service desk requesting a refund. In the process, they essentially receive the item for free.
Others have been reported to print fake receipts which they use to return shoplifted merchandise for a cash refund.
Denying Returns
Some retailers have turned to a practice in which customers who return or exchange items excessively (beyond the guidelines set by a retailer) may be prevented from making a return or exchange with that particular company.An agency called The Retail Equation (formerly The Return Exchange) collects data from participating retailers via a swipe of a driver's license
Driver's license
A driver's license/licence , or driving licence is an official document which states that a person may operate a motorized vehicle, such as a motorcycle, car, truck or a bus, on a public roadway. Most U.S...
. The information found on the license is collected into a database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
, and other stores operated by that particular retail company can use this information to deny a return. This system can be used to prevent various problems, such as return fraud.
External links
- The Retail Equation homepage, describes details about the agency and returning