Overview
Lowe’s suppliers agree to a Return Method, Return Authorization Method, and a Collection Method during their onboarding process with their Lowe's buyer. Selections made for each will apply against all customer returns, including both defective and SOS (Special Order or Drop Ship only) non-defective returns.
Return policies are at the Home Office Vendor Business Unit (HOVBU) level and apply to all items regardless of the product, cost of the product, or reason for the return.
Return Methods
Lowe's offers two different return methods at the HOVBU level: Return to Vendor or Dispose. For disposal Lowe’s can elect to recycle, liquidate, donate, or destroy.
The Return to Vendor method will include a 5% processing fee, and the supplier is responsible for coordinating pickup of return freight. Suppliers have 14 business days to process the return and arrange shipping or pickup after being contacted by Lowe's. Failure to do so will result in the disposal of the product by Lowe's.
It is important to make sure that all return contact information is up to date in Vendor Gateway to ensure smooth processing.
Return Authorization
Suppliers have two options for how they would want to account for the return. The first is that no return authorization is required. Stores will process customer returns without a Return Authorization (RA) Number being required to RTM for credit.
Alternatively, suppliers can provide a blanket RA against which all returns can be processed. The RA Number is 10 digits (max), alpha numerical without any spaces, and it should not contain PO, Store #, or Date.
Collection Methods
There are also two options for collection methods available.
Suppliers can either have returns taken as deductions as each RTV is processed (with ACLI cost). Or suppliers can opt for a Defective Allowance.
Deductions will be taken on a monthly cadence based on the percentage agreed upon in the PO cost. This deduction will include all RTVs processed for that month.
ACLI
The ACLI cost formula is PO/Invoice + Inbound Freight + DC Costs - Allowances.
Unless otherwise specified, items will be purchased on the basis of Lowe's valuation method for inventory, which includes all costs for placing inventory in a sellable
position in our stores. This includes, but is not limited to, inbound freight charges and distribution or warehousing costs incurred within the distribution center/store.
Note that the Return to Vendor processing fee is 5% per RTM cost at ACLI if the item is stock inventory.
Store Return Process
Customers who wish to make a return will return the product to their local Lowe’s store. The store will then process the return against the supplier's return policy. If the vendor is on a Return to Vendor policy, the product will be returned to the supplier.
Customers provide Lowe’s with the return reason at the point of return. Lowe's reviews and inspects the product, but it cannot confirm defective versus non-defective and default to return reason provided by the customer.
Buyer’s remorse is considered a non-defective return and follows the same policy as defective returns. If there are missing or damaged parts, customers will reach out to
their local Lowe's for assistance on ordering missing or damaged parts, and Lowe’s would notify the supplier for assistance as needed.