Handling returned goods
Returned goods are one of the most common sources of stock record errors. A customer sends something back, someone puts it on the shelf, and the system never finds out. Or the item is damaged, nobody decides what to do and it sits in a corner for months. A clear returns process prevents both problems.
Receive returns in a separate area
Do not put returned goods straight back on the shelf. Receive them in a dedicated zone, so that unchecked goods never mix with sellable stock.
Check and document
Compare the return with the original sale: item, quantity and reason. Record the return in the system with a document, including who received it and when. Photograph visible damage if it matters for a claim.
Assess the condition
Inspect each item and classify it into one of three paths.
- **Resell:** the goods are in perfect condition and packaging, and go back to stock.
- **Repair or repackage:** the goods can be restored at reasonable cost and then sold.
- **Write off or return to supplier:** the goods cannot be sold and are disposed of or sent back with a claim.
Decide quickly
Set a time limit for each return, for example a few days from receipt to decision. The longer returned goods wait, the more likely they are lost, mixed or forgotten.
Update the records the same day
A return that is physically processed but not recorded creates a surplus on the shelf. Make the system update part of the same procedure as the physical check.
Look for causes
Track the reasons for returns: wrong item shipped, damage in transit, quality, customer change of mind. A high share of one reason shows where to improve, in picking, packaging or product quality.
A simple returns flow
Returned goods arrive and are placed in the returns zone. They are checked and photographed if needed. The condition is classified. The system is updated with the return and the decision. Sellable goods go to stock with their location, and others go to repair, supplier return or write-off. Each step has a person responsible and a time limit.
Protect customers and cash
Make sure that a refund or credit is issued only after the return is recorded. This avoids paying for goods that never arrived and helps reconcile customer accounts.
Finally, include the returns zone in your counts. It is where goods are most likely to be lost between the cracks.