CIM Reverse Logistics & Returns 3

Question 1

Which of the following is a primary driver of consumer product returns in e-commerce?

Accepted Answer

Product does not match online description or images

Answer

In e-commerce, the most common return driver is product misrepresentation—items that don't match photos, descriptions, or size charts.

Question 2

What does 'advance exchange' mean in a returns context?

Accepted Answer

A replacement unit is shipped before the defective unit is returned

Answer

Advance exchange (or advance replacement) ships a new unit to the customer immediately, improving satisfaction while the defective unit is returned separately.

Question 3

How does 'vendor-managed returns' differ from standard returns processing?

Accepted Answer

Vendors handle disposition decisions and logistics for returned goods

Answer

In vendor-managed returns, the supplier takes responsibility for disposition decisions and reverse logistics execution, relieving the retailer of those costs and decisions.

Question 4

A retailer's return rate is 18% and average order value is $120. If 60% of returns are resold at 70% of original price, what is the net recovery per returned dollar?

Accepted Answer

$0.42

Answer

60% of returns resold at 70% value = 0.60 × 0.70 = 0.42 recovered per returned dollar.

Question 5

What is 'secondary market' disposition in reverse logistics?

Accepted Answer

Selling returned goods through discount or liquidation channels

Answer

Secondary market disposition involves selling returned or excess inventory through discount retailers, liquidators, or auction channels below primary market prices.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Reverse Logistics & Returns 3