The trend of selling used items online is growing, especially as people opt for second-hand purchases amid rising inflation.
Amazon has recognized this trend and created opportunities for sellers. While selling refurbished goods on Amazon is not a new concept, the introduction of Amazon Renewed has distinguished new items from pre-owned, like-new, and repaired products, categorized as “open-box,” “pre-owned,” and “refurbished.”
This not only gives sellers a chance to make a significant profit from selling refurbished items but also enables buyers to discover excellent deals.
In this guide, you’ll learn what renewed means on Amazon, how it works, and how to grow your business by selling on Amazon Renewed.
What is the Amazon Renewed Program?
Amazon Renewed is a unique program by Amazon that lets sellers offer products in three categories: pre-owned, refurbished, or open-box.
Pre-owned: These are items used by customers and returned. They might have some signs of use but are generally in good shape.
Refurbished: Refurbished items are used products returned due to a fault. They go through professional testing and repairs before being sold again.
Open-box: Items taken out of their original packaging but not used. These could be unused returns or items used for demonstrations.
For a product to be part of Amazon Renewed, it undergoes a strict process. It’s cleaned, inspected, and tested to meet Amazon’s quality standards.
Amazon classifies Renewed products based on:
Excellent condition: No visible scratches or damage when held 12 inches away.
Good condition: Light scratches are barely visible from a distance of 12 inches.
Acceptable condition: There are a few visible scratches when the screen is off, and light scratches are noticeable when held 12 inches away.
No matter the condition, all Amazon Renewed items work well, have over 80% of their original battery life, include accessories and packaging, and come with a 90-day Amazon Renewed Guarantee. In short, Amazon Renewed lets customers buy quality-tested and certified refurbished items with the assurance of Amazon’s guarantee.
Quick Review of Amazon Renewed Guarantee
The Amazon Renewed Guarantee is a warranty program provided by Amazon for renewed products. Here’s what it includes:
90-Day Warranty: Customers receive a full refund or replacement within 90 days of purchase if the renewed product is not working as expected or if they are unsatisfied.
Extended Warranty for Renewed Premium Items: Renewed Premium items have an extended guarantee, allowing customers to receive a full refund or replacement within 1 year of purchase.
Free Troubleshooting: Customers can access free troubleshooting services via phone or chat.
Quick Support for Claims: Customers can expect prompt support for warranty claims.
It’s crucial to note that sellers are responsible for honoring the Amazon Renewed satisfaction guarantee, and this guarantee is not fulfilled by Amazon directly.
While sellers can provide guarantees to customers in addition to the Amazon Renewed Guarantee, Amazon does not take responsibility for any claims made under the seller’s “Voluntary Guarantee.”
Difference Between Selling Amazon Renewed and Selling Used Items On Amazon
The critical difference between selling through Amazon Renewed and selling used items on Amazon lies in the marketplace dynamics and customer assurances.
In Amazon Renewed, sellers can secure the buy box, a privilege not available to regular sellers of used items on Amazon.
Customers on Amazon benefit from a guarantee provided by Amazon, instilling a sense of security in their purchases.
However, it’s important to note that Amazon charges an additional fee for sales made through the Amazon Renewed platform.
Products to Sell on Amazon Renewed
The Amazon Renewed program lets sellers list products as “new” only if they’re in excellent condition, meeting Amazon’s high standards and customer expectations.
Not all product categories can be sold through Amazon Renewed, but you can list refurbished or renewed items in these categories:
- Watches
- Tablets
- Home & Industrial Tools
- Laptops & Computers
- Smartphones
- Automotive Parts
- Headphones & Audio
- Outdoors & Sports
- Home Appliances
- Cameras
- Television Sets
- Video Game Consoles
- Office Equipment
- Musical Instruments
- Kitchen Appliances
Note: This program ensures customers receive high-quality products that look and work like new.
Where to Buy Products for Selling on Amazon Renewed?
Finding quality products for selling on Amazon Renewed involves exploring various avenues. Let’s have a look at different sources to buy items for your Amazon Renewed business:
Wholesale Suppliers
Establish connections with wholesale suppliers specializing in refurbished or pre-owned items. These suppliers often maintain a diverse inventory, from electronics to home appliances. Regular communication and partnership can lead to a reliable source of quality products.
Manufacturers and Brands
Reach out to manufacturers or brands offering certified refurbished versions of their products. Some brands operate their refurbishment programs, providing an opportunity for direct sourcing by Amazon Renewed sellers. Establishing partnerships with such entities can secure a consistent supply.
Liquidation Auctions
Participate in liquidation auctions, either in person or online. These auctions feature bulk quantities of refurbished or customer-returned items, presenting a cost-effective method for sourcing products. Vigilance and research are crucial to ensuring the quality of objects acquired through this channel.
Here are some reputable Liquidation Auctions companies that you may consider:
Amazon Liquidation Auctions
Direct Liquidation
Liquidation.com
Walmart Liquidation Auctions
Amazon Return Pallets
Amazon regularly auctions off returned merchandise by the pallet, often without revealing the contents beforehand. While this can be a lucrative option, it requires careful consideration and a willingness to take on some level of uncertainty in terms of product specifics.
Customer Returns
Collaborate with retailers or wholesalers specializing in handling customer returns. If in good condition, these returned items offer a potential source for refurbishment and resale on Amazon Renewed. Building relationships with return processing centers can grant access to a steady stream of products.
How to join the Amazon Renewed Program? 4-Step Checklist
Create an Amazon Seller Account
If you don’t have a seller account, go to the Amazon website and create one on Seller Central. Choose a seller plan (Professional or Individual) and provide the necessary information, including a business email, credit card, government ID, tax details, phone number, and bank account. Consider joining the Amazon Brand Registry if applicable.
Meet the Criteria
Sellers must meet specific criteria to list Renewed products on Amazon, including:
- Order Defect Rate of 0.8% or less in the past 60 days.
- Supply invoices for refurbished purchases totaling $50,000 (or more for certain brands) in the last 90 days.
- Proof of experience selling refurbished items, showcasing sales volume and types of items sold.
- Products must be inspected, cleaned, repaired, and tested by a manufacturer or third-party refurbisher.
- Provide at least 10 images, including the shipping box, product box, items inside the box, and top-to-bottom product pictures.
- Meet the Amazon Renewed Quality policy and submit additional documentation about the inspection process.
Apply for Amazon Renewed
Once you’ve created your seller account and fulfilled the criteria, apply for Amazon Renewed. You can do this through the program website or by emailing Amazon at [email protected] and providing the necessary documentation. Amazon will notify you of approval within 10 business days.
Start Selling
Upon approval, add your Renewed products to existing listings or create new ones. Begin selling on Amazon Renewed and use this platform to reach customers looking for refurbished items.
If you feel confident in navigating these processes, go ahead and proceed, or you can hire an Amazon consultant from eMarspro if you find the tasks challenging.
eMarspro is a leading provider of account management services for Amazon sellers, their team consists of seasoned Amazon experts with decades of experience effectively managing brands and manufacturers on Amazon.
Pros and Cons of Joining the Amazon Renewed Program
Sellers contemplating entry into the Amazon Renewed program must weigh the advantages and disadvantages to make an informed decision. Here’s an in-depth exploration of the pros and cons:
Pros of Amazon Renewed
Reduced Competition: The stringent entry standards make Amazon Renewed an exclusive program. This exclusivity creates less competition, providing sellers with a unique space to showcase their refurbished products.
Access to a New Consumer Demographic: By becoming part of the Amazon Renewed program, sellers can tap into a different demographic of consumers. Those seeking refurbished items represent a market segment willing to embrace pre-owned products, potentially converting into loyal customers.
Backed by Amazon’s 90-Day Guarantee: One of the major advantages is that Amazon stands behind Renewed products with a 90-day guarantee. This commitment implies that Amazon will cover return costs for dissatisfied buyers during the initial 90 days after purchase, instilling customer confidence.
Efficient Order Fulfillment with FBA: Sellers can leverage the Fulfillment by Amazon (FBA) program for seamless order fulfillment. This entails sending products to Amazon’s fulfillment centers, where employees handle picking, packing, and shipping orders. This streamlines operations and enhances customer satisfaction with reliable and quick delivery.
Cons of Amazon Renewed
May Not Suit Luxury Brands: For sellers dealing in luxury items, the Amazon Renewed program might need to align with their brand image. Luxury items often come with prestige and exclusivity, and being part of a refurbished program may resonate poorly with the target audience.
Products Displayed Alongside New Ones: Renewed products appear in search results alongside brand-new items. Sellers must work diligently to ensure customers can distinguish between the two. Proper product descriptions, images, and labeling become crucial to avoid confusion and maintain transparency.
Wrap-Up
Joining the Amazon Renewed program can be a strategic move for sellers, especially those targeting a market interested in pre-owned, refurbished items. The exclusive nature of the program, coupled with Amazon’s guarantee and efficient fulfillment options, provides a unique opportunity.
However, sellers must carefully consider their brand positioning and be mindful of potential challenges, such as the coexistence of Renewed and new products in search results.
By navigating these factors thoughtfully, sellers can maximize the benefits and minimize the drawbacks of participating in the Amazon Renewed program.
Need instant help selling on Amazon? Feel free to contact us or call us at +1-682-472-4939.
