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In this session, we shall deal with the third function of inbound logistics: Dealing with returned products.
A customer returning the product he has purchased to the retailer for some valid reasons like the defective functioning of the product, say, some electronics product is called Product Return. The customer also receives a refund or exchanges the returned product for another item generally of the same cost.
Customer Rights guarantee him survival, enough food, clothing and shelter. The Right to Safety sees to it that he gets goods and services that are not dangerous to health and life. The Right to Information offers him the demand for facts and information he may need to exercise a right choice. In other words, the Customer or the Consumer has the right to choose products and services of his choice among many different services and goods available and he has the right to choose at competitive prices. If the goods or services do not satisfy him he has the right to seek redress.
Based on this Right to Redress, the Customer can return a product or reject a service on the grounds of dissatisfaction with the product or the service.
Let us look into some more reasons that influence the rejection or the return of the product. When a customer receives a product purchased online, he may find the size or the colour is not what he wants; he finds there is some difference between what he saw online ad and what he gets when delivered. Or there is a possibility that the customer wrongly clicked the box and finalized the purchase he did not intend to buy it. In such cases, the customer may have to choose an alternative to the same price of the returned product. Another mistake that is known to happen is the customer orders more than he needs; this mistake happens when products are sold in bulk. After purchase, the customer may look into the prices of other companies for the same product and he finds that he has paid more comparatively; therefore, he wants to return. Any customer does not cherish the feeling that he has been cheated in a way. Another popular reason points to the fact that after the purchase, he realizes the same product can be acquired rather cheap during the festival season and he does not hesitate to return the product choosing to buy the same one in the festival sale spree.
Late delivery will necessarily lead to dissatisfaction of the customer ending up in returning of the product.
There is unethical return of the product also.  Some customers purchase a product, use it for a day or two and then return on some pretext and demand full refund. This practice is not new to the retailers who once detected try to dissuade the customer from purchase.
Indeed, there is some fraudulent practice among some customers. They return some stolen items or items purchased on stolen credit cards. The company must evolve some mechanism that detects these fraudulent practices.
It is said by experts that the company must have some return policy in practice that enables the customers to return the products and at the same time adequate measures have been put into practice to deal with the customers who tend to abuse the return policy.
We will see some more of return policy in our next session. 

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