Fashion Terms — the Apparel Search fashion terminology directory
A return authorization — also called a return merchandise authorization (RMA) or return goods authorization (RGA) — is part of the process of returning clothing, footwear or fashion accessories for a refund, replacement or repair. The purchaser must contact the supplier (manufacturer, distributor or retailer) to obtain authorization before returning the product, so the return is agreed, tracked and credited correctly.
What is a return authorization and why does it matter to clothing companies?
First of all, what is a return? A return takes place when a company purchases product and then for some reason returns the merchandise to the company that sold them the merchandise.
For example, a clothing boutique called Mike’s Clothing Store purchases jeans from the wholesaler John’s Wholesale Jeans Co. After the purchase arrived Mike conducted an inspection (possibly an AQL inspection). After conducting the inspection Mike’s Clothing Store realized that a large portion of the shipment was in a very poor quality. The owner decided that the shipment was unacceptable and they did not want to keep the merchandise. It was decided that a full return was necessary.
Because Mike’s Clothing Store already paid for the shipment, it was important that they discussed the issue with John’s Wholesale Jeans Company so that they could mutually agree that a return would be made. It was important for the jeans company to confirm that they have given authorization for the return and that they would refund the money.
Prior to returning merchandise, it is important to receive a return authorization so that you are certain that your account will also be credited accordingly. You do not want to return merchandise to someone and later learn that they have no intention of giving you back the money you originally paid for the merchandise.
A return can transpire for numerous reasons. Poor quality is only one of the many reasons. Some companies will ship merchandise with a pre-discussed agreement that unsold units will be returned at the end of the selling season.
When dealing with large clothing retailers the buyer a return authorization is typically assigned to product being returned. The return authorization number allows both companies to better track the return transaction.
The company that receives the returned clothing must decide what to do with the product. Depending on the quality, they have a few options. The product can be refurbished and sold again to a new client if the merchandise is of good quality. Damages can be donated or destroyed depending on the condition.
If you work for a fashion company that has many return in your warehouse, you may want to consult with a clothing closeout company or a jobber to help you sell off the excess merchandise.
By the way, if product is returned for poor quality, late delivery, or another supplier error sort of reason, it may be accompanied by a chargeback from the buyer.
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A return merchandise authorization (RMA), return authorization (RA) or return goods authorization (RGA) is a part of the process of returning clothing, footwear, or fashion accessories in order to receive a refund, replacement, or repair. The purchaser of the product must contact the supplier (manufacturer, distributor, or retailer) to obtain authorization to return the product.
The example behind this term is the standard wholesale case. A boutique buys jeans from a wholesaler, inspects the shipment on arrival — possibly with an AQL inspection — and finds a large portion in very poor quality. The boutique has already paid, so the jeans sitting in its stockroom are also its money. The return authorization is the mechanism that converts those goods back into a credit: the buyer raises the problem, the seller agrees the shipment is unacceptable and authorizes the return and the refund, and only then does the merchandise travel. Skipping the authorization step reverses the leverage — goods gone, credit uncertain.
Quality failure is only one trigger. Returns also happen under pre-discussed agreements that unsold units go back at the end of the selling season, and for supplier errors such as late delivery — which may additionally be accompanied by a chargeback from the buyer. In each case the authorization, and especially its number, is what makes the transaction administrable at scale: warehouse, accounts and customer service on both sides can reference the same RA number and agree on what was sent, what arrived and what was credited.
An authorized return is the first step of reverse logistics, the backward flow of goods through the supply chain. What the authorization governs is the front end of that flow — permission, identification and the promise of credit. Everything after the truck leaves — inspection, refurbishing, resale through closeouts and jobbers, donation or destruction — is decided under the reverse logistics and refurbishing terms linked from this page. For a fashion business, getting the authorization discipline right is what keeps those later steps orderly instead of adversarial.
Because the account must be credited. Returning goods without authorization risks sending merchandise to a company that has not agreed to the return and has no intention of refunding the original payment. The authorization is the mutual agreement that the return will be made and the money refunded.
Large clothing retailers typically assign a return authorization number to product being returned. The number lets both companies track the return transaction from shipment through receipt, inspection and credit.
The receiving company decides by quality: good-quality merchandise can be refurbished and sold again to a new client; damaged goods may be donated or destroyed depending on their condition. Excess returned stock may also be sold off through a clothing closeout company or a jobber.