Return merchandise authorization (RMA)
Also called return goods authorization, RGA
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is RMA?
A return merchandise authorization (RMA) is the approval and tracking number a distributor issues before a customer sends a product back. The RMA records why the item is coming back and what happens next: credit, replacement, repair or return to the supplier.
How it works
Distributors set return rules to control cost: a time limit, original packaging, and a restocking fee for items returned for reasons other than the distributor’s own error. Special orders are frequently non-returnable.
RMA example
Two unopened boxes of switches, ordered by mistake, come back under an RMA. The restocking fee from the return policy applies, and the credit memo follows once the boxes are checked in.
Related terms
- Credit memoA credit memo is a document that reduces what a customer owes, issued to correct an invoice or to credit a return, a pricing error or a short shipment.
- Reverse distributorA reverse distributor is a company that takes back unsold, expired, recalled or returned products and arranges manufacturer credit, resale or disposal.
- Special orderA special order is an order for an item the distributor doesn’t keep in stock, bought from the supplier specifically for one customer.
- Stock rotationA stock rotation is a supplier program that lets a distributor return slow-moving stock for credit, within a limit and against an offsetting new order.
