USRE42177E1 - Facilitating returns of merchandise purchased from other sources - Google Patents
Facilitating returns of merchandise purchased from other sources Download PDFInfo
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- USRE42177E1 USRE42177E1 US11/088,220 US8822005A USRE42177E US RE42177 E1 USRE42177 E1 US RE42177E1 US 8822005 A US8822005 A US 8822005A US RE42177 E USRE42177 E US RE42177E
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q30/00—Commerce
- G06Q30/06—Buying, selling or leasing transactions
Definitions
- This invention generally refers to a method and system for handling returned merchandise, and more specifically, to a method and system for receiving returned merchandise and efficiently processing it for appropriate disposition.
- a merchant must provide personnel and facilities for processing and handling returned merchandise, which can add substantial overhead to the operation of a business.
- goods When goods are returned, they must be checked to determine their condition and to determine if the customer has actually returned the goods purchased from the merchant, or has omitted any portion of the goods that were to have been returned.
- These steps are essential to ensure that the customer is promptly credited for the cost of the returned goods, but is not credited if the condition and/or contents of the merchandise received are not in accord with the merchant's returned goods policies.
- the merchant must determine how to dispose of the goods. This aspect of handling returned goods can be particularly troublesome, because most merchants are not properly equipped to deal with returned goods that cannot be simply reshelved for resale. In some cases, the condition or nature of the goods will preclude them from being repackaged for resale. In other cases, a portion of the returned goods may be salvaged, but the remainder will need to be discarded in an acceptable manner. For other situations, a merchant will prefer to donate the returned goods to an acceptable charitable cause, thereby enjoying the benefit of a tax write-off for the value of the donation.
- Certain types of goods may represent an environmental hazard if improperly disposed of and will require special handling, in accord with criteria set forth for toxic or hazardous waste.
- Most merchants do not have the facilities or staff to assess the condition of returned merchandise and to carry out the steps that need to be taken for appropriate handling of the returned goods. Accordingly, it will be evident that it would be preferable to provide a centralized returned merchandise handling agency to process returned merchandise for a plurality of different merchants. Such a centralized agency will be able to more efficiently process returned merchandise than could any individual merchant.
- a method for handling returned merchandise on behalf of a plurality of different merchants.
- the method provides that merchants transmit data relating to merchandise that might be returned by customers of the merchants to a central database.
- the data identify the merchant and the merchandise purchased by a customer, and include contact information for the customer.
- a return label is provided to the customer for inclusion with the merchandise being returned and includes information referencing at least a portion of the data stored in the central database.
- the return label can be provided with the merchandise when purchased by the customer, and if so, can be usable without obtaining further permission to return the merchandise, or alternatively, is usable only after permission to return the merchandise has been requested and granted.
- the return label can be sent to the customer for use after permission to return merchandise has been requested by the customer and granted.
- At least part of the information included on the return label is entered into the central database to indicate that the merchandise has been received.
- the condition of the merchandise is then assessed.
- a tag is associated with the merchandise to indicate how the merchandise should be disposed, based upon the condition of the merchandise as received.
- the merchandise is thereafter automatically routed to a station designated for the temporary storage and subsequent disposition of the merchandise as indicated on the tag.
- the return label comprises a scannable code.
- the tag associated with the merchandise also preferably comprises a scannable code. The tag is thus readily scanned to determine the disposition of the merchandise and to facilitate automatically routing the merchandise to the appropriate station for its disposition.
- the station designated for the disposition comprises a storage repository designated to hold returned merchandise that have been allocated for a common disposition.
- the method also includes the step of electronically reporting receipt of the merchandise that was returned to the merchant who transmitted the data identifying the merchandise.
- the report indicates the condition and the disposition of the merchandise to the merchant.
- the account of the customer returning merchandise is credited for the value of the merchandise being returned at any time specified by the merchant from whom the customer purchased the merchandise, but the customer's account is subsequently debited for this value if the merchandised that has been returned fails to meet a condition specified by the merchant.
- a report regarding the status and/or condition of the merchandise is optionally provided to the merchant at any desired point in the processing of the returned merchandise.
- the report is preferably electronically posted on a network accessible by the merchant (such as the Internet), showing the status and/or condition of the merchandise that has been returned. In this way, the merchant can track the handling of the returned merchandise through its final disposition.
- the options for disposition of the merchandise include salvaging at least one useful component from the merchandise and discarding the remainder of the merchandise, refurbishing and repackaging the merchandise for resale, donating the merchandise to benefit a selected charity, discarding the merchandise in an appropriate waste disposal facility, and returning the merchandise to the inventory of the merchant.
- FIG. 1 is a flow chart illustrating the steps implemented in the present invention
- FIG. 2 is a block diagram illustrating the processing of returned merchandise that has been received at a central processing facility
- FIG. 3 is a schematic diagram illustrating the interaction between the merchants that subscribe to the central return merchandise processing service, their customers who are returning merchandise, the facilities, and several of the options for disposition of the merchandise;
- FIG. 4 is a block diagram illustrating a first option for providing a return authorization bar code and prepaid shipping label to a customer for use in returning merchandise;
- FIG. 5 is a block diagram illustrating a second option for providing a return authorization bar code and prepaid shipping label to a customer for use in returning merchandise
- FIGS. 6A and 6B are block diagrams respectively illustrating the purchase of merchandise that includes a return bar code and prepaid shipping label and the control exercised in authorizing the return of merchandise.
- FIG. 1 The logical steps implemented in carrying out the present invention are shown generally in FIG. 1 .
- the process is typically initiated when, as indicated in a block 12 , a customer 10 contacts a merchant 14 to request authorization to return merchandise to the merchant from whom the merchandise was originally purchased.
- a customer will want to return merchandise.
- merchandise may be of an improper size or color, or otherwise fail to meet the requirements of the customer, or the merchandise may be defective, or may have been supplied to the customer in an incomplete form.
- the requirements set forth by different merchants to justify granting of an authorization to return merchandise vary from industry to industry, and will often depend upon the nature of the merchandise.
- NATIONAL RETURN CENTERTM is such a central return facility that has been created by Returns Online, Inc. to efficiently service returned merchandise for a plurality of different merchants.
- a merchant might ship merchandise that was dropped off by the customer, to this central return facility. However, it is more likely that in most cases, the customer will be the party that ships the merchandise being returned to the return facility.
- merchant 14 must authorize the return and transmit the return data to Returns Online, Inc. for inclusion in its database. It will be most convenient to transmit the data electronically, either over the Internet, or via a dedicated data line provided for each merchant who elects to use the central return services provided by Returns Online, Inc.
- the data transmitted to Returns Online, Inc. by a merchant who has authorized the return of merchandise will identify the customer who requested the return and the merchant authorizing the return, will indicate the address and other contact information for the customer, and will include a description of the merchandise that identifies all items that should be included.
- Returns Online, Inc. Upon receiving the data from a merchant who has authorized the return of merchandise, Returns Online, Inc. will generate a return authorization shipping label as indicated in a block 18 .
- the shipping label will include a bar code identifying the merchant authorizing the return and including any other information that is relevant to processing the return of the merchandise. Included on the return authorization shipping label is the address for Returns Online, Inc. Other options for providing the return authorization shipping label are discussed below in greater detail.
- Returns Online, Inc. may include either a prepaid United States Postal Service Postage Permit or other private shipper forms that can be used by the customer returning the merchandise to facilitate shipment of the merchandise to Returns Online, Inc. These labels will be sent to each customer returning merchandise through conventional U.S. Postal Service mail or by email in an electronic form that can be printed by the customer, providing the appropriate printable bar-coded return authorization shipping label for facilitating shipment of the merchandise to Returns Online, Inc.
- the customer Upon receiving the return authorization label, as indicated in a block 20 , the customer will pack the merchandise to be returned in an appropriate container, apply the label to the container, and will then arrange for shipment of the merchandise to the central return facility of Returns Online, Inc.
- the returned merchandise can be conveyed by the U.S. Postal Service using the U.S. Postal Service Postage Permit or by a private shipper. If using the U.S. Postal Service, the customer will leave the container at a postal drop box at the U.S. Post Office, or at the customer's mail box or doorstep. If a private shipper is elected, the shipper will likely pick up the container from the customer's residence or other location.
- a block 24 indicates that Returns Online, Inc. scans the return authorization label applied to the shipping container of merchandise that has been received. Based upon the merchant identified by the bar code on the shipping label, the container conveying the merchandise is sorted and transferred to an appropriate processor station.
- the contents of a shipping container are inspected and the processor verifies that the contents received in the container match the expected contents, based upon the data received from the merchant who authorized the return shipment.
- the processor assesses the condition of the merchandise.
- the processor produces a bar code tag that is applied to the merchandise or its container indicating the final disposition of the merchandise, in accord with instructions received from the merchant and depending upon the assessed condition of the returned merchandise. The disposition indicated on the bar code tag is thus dependent upon the nature of the returned merchandise, the instructions from the merchant, and/or upon the condition of the returned merchandise.
- the processing station sends an electronic transmission to merchant 14 indicating that a complete return of the merchandise occurred, as indicated by the line from block 26 back to block 14 .
- the message may indicate that the return was incomplete or that the returned merchandise exhibits excessive wear or likely customer damage. Fraudulent returns are also detected at this point.
- the electronic message transmitted back to merchant 14 will thus indicate the condition of the returned merchandise. If the merchandise has been completely returned in an expected condition, the merchant will credit the customer's account for the returned merchandise, as indicated in a block 28 . Customer 10 receives the refund, as indicated by the line from block 28 back to block 10 .
- refunds can alternatively be credited to a customer's account for returned merchandise at any time during the process designated by a merchant. For example, when a customer initially requests authorization to return merchandise, the customer's account can be credited for the cost of the merchandise being returned or a check in the amount of the credit can be mailed to the customer. In the event that the merchandise is either not returned by the customer, or if some other condition established by the merchant such as the condition or completeness of the return is not met, the customer's account will be debited in the amount previously credited. If the credit was paid to the customer, an invoice for the amount of the credit will be sent to the customer, or the matter will be otherwise handled as the merchant involved has directed.
- the merchandise that has been inspected at the processor station is then conveyed by an automatic conveyer, which sorts and routes the merchandise to an appropriate station by automatically scanning the bar code tag that was applied to the container or merchandise in block 26 .
- the merchandise is directed to an appropriate temporary storage bin in which it is stored until it is subsequently disposed of as indicated on the bar code applied to the tag at the processing station.
- blocks 34 - 44 Several exemplary options for disposing of returned merchandise are indicated in blocks 34 - 44 .
- Certain types of merchandise may not be completely reusable, but may include components that are sufficiently valuable to justify salvage, as indicated in a block 34 .
- the display screen on such a product if still operative, may comprise a substantial portion of the entire cost of the product when it was originally manufactured. Accordingly, valuable components of such a product can be salvaged for further use in new products being manufactured.
- a block 36 indicates that certain goods will require repackaging or refurbishing, e.g., to replace a blister pack or other packaging destroyed when the customer originally opened the product prior to returning it. Repackaging and refurbishing the product will typically place the product in a saleable condition, assuming that it is not otherwise defective and has not been adversely affected by any use of the previous customer.
- the returned merchandise will be shipped to the original manufacturer, for possible use in manufacturing new goods of a related nature.
- This disposition option is noted in a block 44 .
- FIG. 2 Further details related to the processing of returned merchandise are illustrated in FIG. 2 .
- an exemplary container 50 is shown in which a customer has packed merchandise to be returned. The return of this merchandise has previously been authorized by a merchant, and having been advised of the authorization by the merchant, Returns Online, Inc. has provided the customer with a return authorization label 52 that includes the address for Returns Online, Inc. and a bar code that is scannable for identifying the merchant and merchandise being returned.
- Container 50 is then shipped via a private shipping company or through the U.S. Postal Service to a central return facility, i.e., to a loading dock 54 , which receives all of the packages returned from customers of merchants who are clients of Returns Online, Inc.
- container 50 is directed to a receiving station where return authorization label 52 is scanned using a scanner 64 a, so that the data included in the scannable bar code can be entered within a database maintained on a computer 56 .
- Scanner 64 a is coupled to computer 56 via a lead 58 .
- the receiving station scans a return authorization label to identify the merchant who authorized the return
- the container is sorted along with other returned merchandise received, based upon the information from the merchant who authorized the return of the merchandise.
- the container is then transferred to a processor station.
- the processor at this station inspects returned merchandise 62 inside a container 60 and rescans the return authorization shipping label with a scanner 64 b that is connected to computer 56 through a lead 66 .
- the contents of container 50 are verified against the expected contents as indicated in the data stored in the database on computer 56 .
- a bar code tag 71 indicating the disposition is applied to the returned merchandise or to container 60 , and container 60 and/or returned merchandise 62 is directed onto an automated conveyer system 70 .
- the disposition indicated on bar code tag 71 is scanned using a scanner 64 c, which is coupled through a lead 63 to a computer 68 .
- computer 68 controls conveyer system 70 via control signals conveyed by a lead 65 , to direct the returned merchandise to an appropriate temporary storage bin selected from among bins 72 - 82 .
- Each of these bins is allocated to hold merchandise that has been assigned to a common disposition. Once a bin is filled, it is shipped for disposition as indicated on the bar code tag provided for all of the returned merchandise that it contains.
- Central return facility 100 will service the returned merchandise for a plurality of different merchants including a clothing store 102 having customers 104 , a pet supplies Internet merchant 106 who sells pet supplies to customers 108 , a computers online vendor 110 who sells to customers 112 , a music store 114 that sells music CDs and videos to customers 116 , a drugstore 118 that sells to customers 120 , and an electronic goods store 122 that sells to customers 124 .
- the merchants used in this exemplary illustration are not in any way intended to limit the types of merchants that will use the central return facility provided in accord with the present invention. However, it should be noted that the merchants shown in this example are of both the “brick and mortar” type and of the “online” type that sell goods and services over the Internet.
- a plurality of containers 130 , 132 , 134 , 136 , 138 , and 140 are illustrated in association with at least one customer of each client merchant.
- the customer of a merchant will have contacted the merchant for authorization to return merchandise.
- the container that is being returned includes merchandise purchased from a client merchant and is sent either via the U.S. Postal Service or through a private carrier to central return facility 100 , for example, to a facility operated by Returns Online. Inc.
- returned merchandise After the returned merchandise has been processed as described above, it is conveyed in a bin (along with other returned merchandise assigned the same disposition) to the assigned disposition.
- returned merchandise that is to be donated to a charity are conveyed as indicated by an arrow 144 , using a delivery service, to a charitable institution such as a church 142 .
- Returned merchandise designated for disposal is shipped by a truck 146 to an appropriate waste disposal site.
- Repackaged/refurbished returned merchandise is shipped as indicated by an arrow 148 , prepaid to the merchant that authorized the return, such as electronic goods store 122 , where the returned merchandise is restocked for resale.
- an arrow 150 indicates that returned merchandise designated for salvage is shipped to a salvage parts reseller.
- FIG. 4 illustrates a first approach in which the customer 200 receives purchased merchandise 204 with which is included a return authorization code and prepaid shipping label 206 from a merchant 202 .
- merchant 202 has elected to pre-authorize customers to return any purchased merchandise with which the customers are dissatisfied, without the need to obtain further authorization for the return.
- the authorization to return that merchandise is automatically provided.
- customer 200 If dissatisfied with purchased merchandise 204 for any reason, customer 200 simply repackages the goods, applies return authorization bar code and prepaid shipping label 206 , and arranges for shipment of returned merchandise 208 to NATIONAL RETURN, CENTERTM 210 , as described above.
- FIG. 5 illustrates a more likely approach for handling the authorization to return merchandise.
- customer 200 either contacts a merchant web site 212 over the Internet or alternatively, telephones a merchant call center 214 and is connected with an operator. If the customer contacts the merchant web site, an interactive form will be provided that enables the customer to provide the same information solicited by the operator if the customer had instead called the merchant call center. In either case, the customer requests authorization to return merchandise previously purchased and indicates why the merchandise should be returned.
- a return authorization engine 216 will be provided to compare the code associated with the customer's reason for returning the merchandise with rules that have been predefined as justifying a return, exchange, or other resolution. Typically, these rules will be established by the merchant from whom the customer purchased the merchandise.
- the return authorization engine will automatically send return authorization bar code and prepaid shipping label 206 to the customer. If the customer wants to make an exchange, an operator handling the communication with the customer at a call center (or the customer, if the customer has contacted the manufacturer's web site) will preferably be automatically routed to an order page to enable the customer to order replacement merchandise.
- the return authorization bar code and prepaid shipping label required for returning merchandise can either be sent through the mail, or can be provided as a printable attachment to an e-mail, enabling the customer to print the label.
- This e-mail may include additional messages and/or incentive coupons.
- Customer 200 then applies the return authorization bar code and prepaid shipping label to a container 222 in which the merchandise being returned is packed, and arranges for shipment of the merchandise to the NATIONAL RETURN CENTERTM, as explained above.
- FIGS. 6A and 6B Yet another approach for providing the return authorization bar code and prepaid shipping label and authorizing the return of merchandise is illustrated in FIGS. 6A and 6B .
- This approach is a combination of the preceding two approaches.
- the customer receives the return authorization bar code and prepaid shipping label with the purchased merchandise at the time a purchase is made.
- FIG. 6B the customer is required to obtain authorization prior to returning, the merchandise.
- the customer must contact either merchant web site 212 or merchant call center 214 to request authorization to return the merchandise. If the reason given by the customer satisfies the predefined rules, the return authorization engine provides the authorization for the return of the merchandise, as indicated in a block 222 .
- the return is not authorized, as indicated in a block 224 . Only if customer 200 has been authorized to make a return of the merchandise will returned merchandise 206 be accepted by NATIONAL RETURN CENTERTM 220 . When properly authorized to make a return of the merchandise, the customer will apply the return authorization bar code and prepaid shipping label that was provided with the merchandise when purchased and arrange for shipment of the merchandise to the NATIONAL RETURN CENTERTM as previously noted above.
Abstract
Description
Claims (108)
Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
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US11/088,220 USRE42177E1 (en) | 2000-11-15 | 2005-03-23 | Facilitating returns of merchandise purchased from other sources |
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US09/713,421 US6536659B1 (en) | 2000-11-15 | 2000-11-15 | Facilitating returns of merchandise purchased from other sources |
US11/088,220 USRE42177E1 (en) | 2000-11-15 | 2005-03-23 | Facilitating returns of merchandise purchased from other sources |
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US09/713,421 Reissue US6536659B1 (en) | 2000-11-15 | 2000-11-15 | Facilitating returns of merchandise purchased from other sources |
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US11/088,220 Expired - Lifetime USRE42177E1 (en) | 2000-11-15 | 2005-03-23 | Facilitating returns of merchandise purchased from other sources |
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US09/713,421 Ceased US6536659B1 (en) | 2000-11-15 | 2000-11-15 | Facilitating returns of merchandise purchased from other sources |
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