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Return Goods Authorization (RGA) for Merchant Wholesalers of Nondurable Goods

Merchant Wholesalers, Nondurable Goods · NAICS 424 · Return Goods Authorization (RGA)

A Return Goods Authorization (RGA) is a critical control document for merchant wholesalers of nondurable goods. Unlike durable goods, nondurable items—such as food, beverages, cosmetics, and pharmaceuticals—have limited shelf life and strict handling requirements. An RGA ensures that returns are properly authorized, inspected, and credited, reducing the risk of accepting spoiled or contaminated products. This document helps you manage restocking fees, track carrier damage claims, and maintain compliance with industry regulations. Use it to streamline your returns process and protect your bottom line.

When you need this document

A customer reports damaged goods upon delivery and needs to return them for credit or replacement.
Your company shipped the wrong item or quantity, and the customer wants to return the incorrect products.
A retailer has unsold perishable inventory nearing its expiration date and requests to return it within your policy window.
A customer discovers a defect in a nondurable product (e.g., broken packaging, contamination) and initiates a return.
You need to document a return related to a product recall or regulatory withdrawal.
A customer requests to return items that are not damaged but are within your standard return policy (e.g., overstock).

What the generated draft includes

Unique RGA number and issue date
Customer and wholesaler contact information
Original invoice and purchase order references
Detailed product return list with SKU, quantity, and lot/batch numbers
Reason for return and condition codes
Restocking fee and credit/replacement terms
Return deadline and shipping instructions
Carrier damage claim procedures

Frequently asked questions

What is a restocking fee and when should I apply it?

A restocking fee is a percentage (typically 10-20%) deducted from the credit amount to cover handling and inspection costs. It is commonly applied when the return is not due to a wholesaler error, such as a customer overstock or change of mind. For damaged or defective goods caused by the wholesaler, no restocking fee is charged.

How do I handle returns of perishable goods?

Perishable returns must be authorized quickly, usually within 24-48 hours of delivery. The RGA should specify a short deadline and require the customer to keep the product refrigerated or frozen until pickup. Clearly state that returns will be refused if the cold chain is broken or the product is past its expiration date.

What should I do if the goods were damaged in transit?

If the carrier caused the damage, instruct the customer to note the damage on the delivery receipt and file a claim with the carrier within 48 hours. The RGA should include a section for this, and you may choose to issue a credit only after the carrier claim is resolved. Provide photos and documentation to support the claim.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.