What is Return Material Authorization (RMA) in supply chain?

Return Material Authorization (RMA), also known by several other terms such as Return Goods, Product Return or Sales Return, is a part of the supply chain process where the seller agrees to take back the purchases made by the customer. In turn, the customer receives cash refund or exchanges for another product of the same value depending on the seller’s return policy and warranty period of the item.

Some of the common reasons for return are receiving damaged/expired product, wrong delivery, fraudulent order etc.

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