returns-reverse-logistics

Grade the item first (A through D), then apply the disposition decision tree by category. Restock only Grade A items, refurbish when cost is under 40% of recovered value, and liquidate Grade C items through pallet auctions or wholesale channels.

Use the 0-100 fraud scoring model that weights signals like return rate above 30%, serial number mismatches (+40 points), weight discrepancies (+25), and no-receipt returns. Flag returns scoring 65+ for review and hold refunds at 80+.

A return reverses a purchase within the return window, typically 30 days, for any reason. A warranty claim reports a product defect within the coverage period, from 90 days to lifetime, and follows a separate workflow usually handled by the manufacturer.

Pursue recovery when expected credit times collection probability exceeds labor, shipping, and relationship costs. Always pursue claims over $500, batch claims of $200-500, and raise the minimum threshold to $1,000 for overseas vendors.

Segment beyond raw return rate by evaluating net lifetime value after returns, return reason consistency, and product condition. A customer with $80K spend and 42% return rate may still be profitable, requiring nuanced policy action rather than a ban.

Recalled products must not go through the standard returns workflow. They follow the recall program instead, and mixing them creates liability and reporting errors, so route them immediately to the recall coordinator.