Reverse distributor
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is reverse distributor?
A reverse distributor is a company that takes back unsold, expired, recalled or returned products and arranges manufacturer credit, resale or disposal. The term is most common in pharmaceuticals, where expired and controlled drugs must be returned or destroyed under strict rules.
Reverse distributor example
A pharmacy ships last month’s expired medications to a reverse distributor, which arranges their destruction and collects the manufacturer credits owed to the pharmacy.
Related terms
- Return merchandise authorization (RMA)A return merchandise authorization (RMA) is the approval and tracking number a distributor issues before a customer sends a product back.
- Credit memoA credit memo is a document that reduces what a customer owes, issued to correct an invoice or to credit a return, a pricing error or a short shipment.
- Dead stockDead stock is inventory that hasn’t sold for a long time and probably won’t sell at its normal price.
