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Return & Damage Management

A structured returns and damage-claim process protects margin on both sides of a transaction — as a buyer receiving damaged goods, and as a seller handling customer returns — and the process needs to be decided in advance, not improvised each time an issue arises.

Reviewed by Sourcing Team, Candora Trading·Published April 18, 2026
Return & Damage Management

In this article

  1. 01Handling Damaged Incoming Shipments as a Buyer
  2. 02Managing Customer Returns as a Seller
  3. 03Distinguishing Damage Types for Appropriate Handling
  4. 04Tracking Return and Damage Rates Over Time
  5. 05Frequently asked questions

Handling Damaged Incoming Shipments as a Buyer

A clear, pre-agreed process for reporting and resolving damaged incoming shipments (photo documentation, notification timeline, replacement vs. credit) protects a buyer's margin — without this agreed upfront, damage disputes become ad-hoc negotiations that often resolve less favorably for the buyer.

Managing Customer Returns as a Seller

A documented returns policy (what's accepted, timeframe, restocking or disposal process) protects margin on the seller side — an undefined, case-by-case returns process both costs more in absorbed losses and creates inconsistent customer experience.

Operations — Managing Customer Returns as a Seller

Distinguishing Damage Types for Appropriate Handling

Shipping damage, manufacturing defects, and expired/aging stock each warrant different resolution paths (freight claim, supplier quality claim, or straightforward write-off respectively) — treating all returns identically misses recovery opportunities specific to shipping and manufacturing-fault claims.

Operations — Distinguishing Damage Types for Appropriate Handling

Tracking Return and Damage Rates Over Time

Tracking return/damage rate by supplier and by product over time surfaces patterns worth addressing at the source — a consistently high damage rate from one supplier or shipping lane is a signal to address the root cause, not just process each individual claim in isolation.

FAQ

Frequently asked questions

Follow a clear, pre-agreed process — photo documentation, prompt notification within an agreed timeline, and a defined replacement-or-credit resolution. Without this agreed upfront, damage disputes become ad-hoc and often resolve less favorably.

No — shipping damage, manufacturing defects, and expired stock warrant different resolution paths (freight claim, supplier quality claim, or write-off). Treating all returns identically misses recovery opportunities specific to shipping and manufacturing-fault claims.

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