This paper examined the channel policies that midlife returns (M) and end2of2life returns (E) are used in price increasing environments. Midlife returns allow retailer to return units partway through the life cycle at some rebate. Our results display that , if the wholesale prices and the return rebates are set properly , then EM combining policies can achieve channel coordination. Furthermore , such policies are sufficient to guarantee both coordination and a win2win outcome. These results enlarge the Terry’s about the price decreasing environment