What is a Refurbished Product?
If a product is tested to work just fine but has a cosmetic flaw, or if it doesn’t work at all and the customer wants to return it then the seller tries to sell it again, that is what we call a refurbished item – a product does not work or has not been properly inspected and tested for defective parts.
Even though it can be easily fixed or the flaw isn’t a big deal to everyone, you still couldn’t resell it as something new as it is now an open box item – someone else had already used slightly, so technically, it isn’t so new.
Normally, in the past, these types of products are very hard to resell as people want their things new and flashy – it’s expected for a new product that it should exceed the customer’s expectation. However, as time passed by, defects became a little normal, and manufacturers caught up to it by giving warranty to their customers and also giving them the option of giving back the products they bought for a replacement or refund as long as receipt of the product is given.
To prepare these type of products, the manufacturer will put them through a comprehensive refurbishment process and tests to check for their functionality and quality. After a long process of making sure that the products are now as good as new, you’ll have a certified refurbished product at the end of the process. Examples of these are refurbished iPhones, home appliances, and the like. While these items won’t work as expected, replacement of any defective items are not that bad.
That’s why products on Amazon Renewed are popular these days. It allows you to choose from a variety of products for a cheaper price. Plus, they offer an amazon renewed guarantee to all its customers.
What is Amazon Renewed?
Amazon Renewed has a tagline that goes “Like New For Less No Worries”. Selling refurbished products at a bargain price as if they’re new has been eBay’s territory for a long time. But now, Amazon ventures into new territory and sells their own version of certified refurbished products.
Sometimes, a customer will then return a product with the box damaged or missing. In some cases, however, they just exchange it for an update. These are good ways to save money, and Amazon knows their business well, and that is why they want in on this trend.
Amazon makes sure that they only select qualified suppliers who have maintained high-quality and performance bar to offer Certified Refurbished products, which are tested to work. The refurbishment process includes a full diagnostic test of the product, replacement of the defective parts, a thorough inspection and cleaning process, and of course repackaging by the seller which, as it looks like, isn’t a quick polish and re-box job.
The product is backed by a separate 1-year limited warranty by the Marketplace seller, the manufacturer or a third-party refurbisher, or even in the case of products sold by Amazon, by the vendor. Afterward, it is then shipped with all the needed accessories.
Selling Refurbished Products on Amazon Renewed
There are a lot of ways to make money on Amazon as it provides incredible potential even if your goal is to just make some extra cash or even build an entire business from the ground up. You can start a full-time private label company or randomly sell household goods around your house.
Selling refurbished items is a great means of making money as a lot of customers are looking for deals and are willing to buy even those that have been slightly used to save a huge deal of cash.
The Amazon Renewed program was launched back in 2017 as an exclusive seller group that requires an application process. Back then, only those who have met the outlined criteria can be allowed to participate in selling refurbished items, and only then will their products be able to be sold as “Certified Refurbished”.
A combination of both sales requirements and quality are the criteria to sell on Amazon Renewed, and becoming a part of this group gives you less competition since the members should first be approved before being able to join the group.
If you are looking for a place where there are refurbished products for sale, Amazon Renewed is the place to go. Meanwhile, you can sell your refurbished items on Amazon using the Amazon Renewed program.
The advantage of this is you can earn some profit even from a product that has been returned. Becoming an Amazon Renewed guarantee seller needs considerable commitment as it has to be a highly successful profit opportunity and the products should be working the same as how new products should work as expected.
To be part of the program, these are the things you need to have in order to be an Amazon Renewed Seller:
- You should be committed to acquiring the collection of refurbished products. You should have invoices totaling at least $50,000 in refurbished purchases 90 days before your application date. You have to show $2.5 million for wireless and $100,000 for non-wireless products if you are selling Apple of Samsung products. You need to make a good investment as this isn’t a small-scale project but rather a business proposition.
- You need to have an Order Defect Rate (ODR) of 0.8% or less for at least 700 orders in the past 90 days.
- You need to submit at least 8 images of the sample unit, including its packaging, in order to list factory items that are refurbished without the original manufacturer’s warranty.
- You need to offer a refund within 90 days.
At the same time, here is a list of Amazon returned items for sale:
- Electronics (stereo equipment, television sets, headphones, video game consoles, etc.)
- Smartphones, tablets, laptops, and computers
- Musical instruments
- Automotive parts
- Office equipment
- Outdoors and sports equipment
- Industrial and home tools
- Home and kitchen appliances
What Are the Cons of Buying Refurbished Products?
One of the disadvantages of buying certified refurbished products on Amazon is that your choices don’t usually include the latest models as it takes time for the customers to return the products and also for the manufacturers to refurbish the products and make them for sale.
Some manufacturers also won’t promise that the refurbished products are in new cosmetic condition, though you can always expect that your product will work as if it is new. The product’s warranty may also be a period which is shorter than for those new items, so you might have to pay for the additional cost for an extended warranty if ever you want this type of protection.
Why Should You Buy Refurbished Products?
The main benefit of buying an Amazon certified refurbished product is that you will save money while buying a fully functional item. This is because sellers can’t list these products as new; they instead offer it at lower prices to attract customers. Another reason why you should buy Amazon refurbished product is that you can rest easy knowing that your product has undergone testing for defects.
Lastly, buying refurbished from Amazon comes with warranties just like those of new products, so you don’t have to worry about not getting your money back if the item you have received doesn’t work as described.
On the other hand, if you plan to be an Amazon renewed seller, here are the advantages you can enjoy:
- You get to extend your brand
Becoming an Amazon renewed Seller will help you boost your brand recognition as you can now offer customers another option which is purchasing refurbished equipment. As it is known in the marketing world, the more choices you provide to the customer, the more customers you’ll have.
- Avoid competition and join an exclusive program
Not everyone can be a seller of certified refurbished items on Amazon. It is a privilege given only to those who have met Amazon’s quality criteria and can consistently sell new products. This gives a great opportunity for the very few who are to be accepted.
- You get to sell to a loyal customer base
Global traffic in Amazon is between 2 to 3 billion visits a month, explaining why it’s known as the leading e-commerce platform. Customers are confident knowing that you have passed Amazon’s requirements in order to sell items that are refurbished. This removes their worry to purchase from you.
- You can use the Amazon platform
As Amazon is known for its quality products, you can use its fulfillment capabilities and proven selling tools to sell your refurbished products worldwide. You can also improve product reviews, manage feedbacks, and automate high-volume emails by making use of the third-party software that Amazon offers.
You Can Get Help for Amazon Renewed from Amazon
Amazon’s account managers are working with sellers one-on-one to help them with the onboarding process as the sellers for Amazon Renewed has been in high demand. Below are a few things that Amazon offers to the sellers of their new platform:
- Increase your profit back to Sound United and protect your brand.
- You can use spreadsheets, feed, and other programs to streamline the inventory loading process from just the standard condition to CR condition.
- To help you get your storefront launched, you can get initial startup support from Amazon’s onboarding team. This includes live personalized raining, expedited storefront launch, and even inventory loading.
- You can run your Best Deals on Certified Refurbished products. You can run as many as you want through 2018, and this is one of the benefits of having an account manager.
- You can sell your products to direct consumer and even protect the privacy that you want to offer for your products.
Some tips are provided below for selling refurbished items on Amazon renewed. Below are some tips that we recommend for you to be successful in the Amazon Renewed Seller platform:
- Give customers at least a 20 percent reduction in the cost of a new product.
- You should get started with at least 15 SKUs.
- You should make use of Amazon’s Sponsored Products advertising programs which helps you create a certified refurbished ASINs which will be appearing on the first page of the search results of Amazon on its product detail pages.