Amazon Renewed is a program in which sellers can offer refurbished items at great discounts. It’s no secret that consumers want to save money on the ever-rising prices of many commodities. But it’s always hard to find good, second-hand products online.
Also, how can you tell if they’ll work? And, what can you do if the item falls short of expectations?
In this post, we’ll review how the Amazon Renewed program actually works and how sellers can make a profit.
What Is Amazon Renewed?
Image: Amazon Renewed
Maybe you’ve come across the “Renewed” label while scrolling through Amazon’s homepage.
This is the retail giant’s gateway into the second-hand market and it gives shoppers the chance to buy second-hand products, backed by Amazon’s guarantee.
According to Clark.com, customers save from 30% to 50% when purchasing on Amazon Renewed. These are some of the items you can find there:
- Cameras, tablets, and laptops
- Smartphones and smartwatches
- TVs and audio devices
- Office equipment
- Power tools
- Home and kitchen appliances
- Consoles and video games
Image: Amazon Renewed
There are 3 main categories of used products:
- Open Box. Unused and returned products with an open package.
- Pre-owned. Open-packaged items with minimal use. They are in better condition than refurbished products.
- Refurbished. Items with cosmetic wear, missing accessories, and extended use. To resell these products, the seller must fix them to the best possible condition.
Renewed or Refurbished, is the main product category found in Amazon Renewed. And the retail giant goes a long way to resell them.
Amazon’s in-house technicians, or third-party restorers check and restore all products.
Each item goes through a thorough cleaning process to ensure they look as new as possible. Then, items get certified by Amazon and uploaded to the marketplace.
Renewed products feature minimal wear and cosmetic issues (when seen from 12 inches away). Batteries are also tested to feature at least an 80% charging capacity.
Besides, Amazon replaces any missing accessories when it’s needed. However, some replaced items may come from generic brands.
Amazon Renewed Guarantee
Every Amazon Renewed item sold in North America (except for Amazon devices) is backed up by the Amazon Renewed Guarantee.
This is a refund & return policy designed to protect both sellers and customers. It grants customers the following safeguards:
- Satisfaction guarantee. When the product doesn’t work as expected, buyers have a 90-day window to return the item. Then, customers may receive a full refund or a product replacement.
- Renewed Premium. Some renewed items feature the Renewed Premium badge. In such cases, products have a 1-year return window.
- Customer Support. Shoppers can submit claims or seek troubleshooting via the “Get Product Support” button. It is located next to the purchased item, on the “Your Orders” page.
Guarantee-covered items feature the words “Backed by the 90-day Amazon Renewed Guarantee” in the product listing page.
Note: Theft, device tampering, and accidental damage are not covered under the Amazon Renewed Guarantee.
Why Should I Join Amazon Renewed?
Amazon Renewed is not an exclusive store for customers and Amazon. Sellers can also use the program to their advantage.
Here are some of the perks that brands enjoy when enrolling in Amazon Renewed:
You’ll access an exclusive marketplace for sellers who can provide refurbished products. But also, you’ll prove that your return and refund logistics are top-level.
So, Amazon Renewed has lower competition amongst brands. And this translates to increased chances to sell and delight consumers.
New eCommerce Tools
Amazon provides sellers with innovative advertising and selling features, and Amazon Renewed is no exception.
This marketplace also features several ways for sellers to increase revenue.
“Renewed” brands can get insights to optimize listings and promote items to set up a successful refurbished store.
Visibility & Engagement
Buyers are always on the lookout for trustworthy used items. In fact, some Amazon users wait for specific products to appear on Amazon Renewed.
If your brand has built enough trust by selling brand new products, you could follow up on that reliability to sell “like-new” products.
If they know you provide great products, they’ll expect the same when advertising renewed products.
Inside Amazon Renewed
Amazon Renewed is a great opportunity to grow your business as a certified, refurbished seller. It is a whole new market that allows you to gain visibility, engagement, and credibility as a brand.
There are two ways to join Amazon Renewed:
- FBA: You’ll be automatically enrolled in the program.
- FBM: You must comply with a series of requisites to join Amazon Renewed.
Amazon Renewed Eligibility Requisites
- First off, you must be a Registered Amazon Seller, with an Order Defect Rate below 0.8%, and at least 70 orders in the past 90 days.
- You must also accept pre-paid returns, and provide data on your experience selling refurbished items.
- Next, you must prove that you’ve earned at least $50,000 in qualifying refurbished purchases. (Submit invoices 90 days before your application.)
Sometimes it’s not possible to provide a guarantee, especially when sourcing factory refurbished products. In such cases, you can submit at least eight images of a sample unit.
Amazon will review this information to verify shipping, packing, and padding practices.
Lastly, you must provide a 90-day warranty for certified restored products. And once Amazon clears your application, you can start listing refurbished items.
Contact Amazon Renewed’s support team, and send all your documentation to see if you qualify at [email protected].
Now, it’s time to select specific certified-refurbished goods to sell on this program. Do some research to source the best refurbished inventory.
Find refurbished products with high demand and low competition. It’s best to choose items that do not compete with other sellers, or with Amazon.
Once you have selected the best items for you, start sourcing. Here are some options to get the products you need:
- Manufacturers. Partner up with a supplier that sells refurbished goods to third parties. You can buy products in bulk and upload them to Amazon Renewed.
- Liquidation. There are companies that buy excess stock from manufacturers to refurbish and sell. You can skip the manufacturer and buy from them.
- Alibaba. Acquire wholesale discounted goods from Alibaba or similar stores.
- Retail Arbitrage. Buy items on clearance to sell them for a nice profit on Amazon.
Remember, all the products you get must pass Amazon’s review. So, it’s important that the products you sell are in good condition. That way, you’ll ensure the product gets the Amazon Renewed Guarantee.
As you source your product and build up your inventory, keep an eye out for how your products’ price compares to similar refurbished items.
Then, come up with an attractive price for customers. A good rule of thumb is to price items with a 5% to 20% discount from their “new” sales value.
A Few Extra Tips
Treat your Amazon Renewed venture like it is your main store. Customers expect great listings and services. You must win their trust. Start out by offering great content. Create detailed and honest descriptions. Since you’re selling refurbished goods, customers expect full disclosure about the working state of a product.
Next, invest in quality images. Make sure the refurbished product looks its best. Great visual quality means better sales.
You can also invest in sponsored product campaigns. These are cost-per-click ads that show up in search results. Place yourself in front of the users, especially those who seek renewed items.
Build a good reputation as a seller through your customers’ feedback. Positive feedback shows you deliver working products at fair prices and great customer support.
The second-hand market is on the rise. But gaining consumers’ trust is by no means an easy task!
For sellers, Amazon Renewed is a chance to resell returned items. It is a second source of income and a new channel to engage with customers.
FBA sellers are automatically enrolled in the program. Therefore, it may take longer for FBM brands to join Amazon Renewed, but it’s certainly worth it.
Esteban Muñoz is an SEO copywriter at AMZ Advisers, with several years’ experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on the Amazon platform for their clients by optimizing and managing their accounts and creating in-depth content marketing strategies.