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It is not necessary to have a revolutionary new product idea to sell things online. You do not even have to manufacture your products to start your own eCommerce business. In addition to transferring product development, manufacturing, and fulfilment to third parties, there are many other business models you can adopt.
Selling refurbished products are one such model. Becoming a seller of refurbished items is a great way to start selling online without starting from square one. One such online selling platform available is Amazon Renewed.
What is Amazon Renewed?
There are some items that people have hardly used after purchasing them, E-commerce existence is a bane. But today there is a place that is safe on Amazon; Amazon Renewed. But what is Amazon Renewed and why to use it? Is it worth it for that brand where you want to keep it original? Let's have a look into it.
A renewed product is an item that is almost like new with high quality that could be refurbished, pre-owned, or open box. Yes, you read it right. There are different types of ways to sell an item under the Amazon Renewed category.
This Amazon Renewed program allows vendors to sell their refurbished, pre-owned, or open-box products at a discounted price, they get to clear the stock, while the buyers get what they were looking for at low cost. The quality check on such items is thorough, they are ensured to be in new-like condition and intact.
One's brand needs to reach a certain amount of the performance bar set by Amazon to qualify as an Amazon Renewed Seller, which concludes that the product listed will be handed over to the customer only after it has been tested and certified to look similar to the brand new.
A typical process involves a diagnostic test, replacement of the worn out or not working parts, thorough cleaning and inspection, and repacking like new when all the quality assurance is done.
Amazon has certain categories that ate eligible to be listed under the Amazon Renewed program, not all products can be sold here. Here's what all can be considered to be sold under Amazon Renewed:-
- Watches
- Television sets
- Video game consoles
- Tablets
- Smartphones
- Office pieces of equipment
- Musical instruments
- Outdoor and sports
- Kitchen appliances
- Laptops and Computers
- Automotive parts
- Cameras
- Home appliances
- Headphones and audio
- Computer peripherals including keyboards, mice, etc
- Heaters
- Projectors
When held 12 inches away, no signs of damage (scratches, dents, etc) should be visible, and refurbishment of any parts should be done only using an Original Equipment Manufacturer (OEM).
The markings such as the logo of the supplier, engravings, etc should be intact. Must include all the accessories that have been purchased from new like. Batteries should have a capacity that exceeds 80% of the new product.
Difference between Refurbished, Pre-owned, and Open box
There are mainly three different types of items that are sold under Amazon Renewed program categories. All of them differ in the product, they are:-
1. Refurbished
Refurbished products are those that are used by the customer and then either sent back because of finding it to be faulty or they no longer wanted them. The Sellers of refurbished items make sure to check all the necessary parts if everything is intact and working, replace the ones that are damaged, run tests and then put them online.
In many cases electronics suffer the most damage, the buttons are cleaned or switched if worn out, and the exterior face plate is changed if need be. Many of the refurbished products come with a warranty, usually, the period is much shorter than the new ones.
In many cases, when a refurbished product is bought from a manufacturer, you get the same benefits or tech support as if you'd bought a brand new product. Both are treated as equals in a way.
Certified Refurbished
There's a difference between a refurbished product and a certified Refurbished product, that is the refurbished product is from a third-party seller or companies or individuals while when the manufacturer, dealers, or authorized third-party refurbishment companies themselves to claim to have put them on sale, it becomes a Certified Refurbished product. Since the tooling and expertise are used in the factory, the Certified Refurbished products are better to purchase.
2. Pre-owned
Pre-owned is a category that sits somewhere between Refurbished and Used products, the item condition is good to use but not exactly new in condition. It is a grey area because it technically refers to a second-hand product but in many cases, the item is taken good care of. It's like a vintage label applied to clothing.
The term Pre-loved is used at times similar to pre-owned, implying that the product listed is handled with care and was beloved to the previous owner, you are expected to notice nothing wrong on the outside of the product or just some minor negligible damage.
The words Pre-owned, Pre-loved, and Vintage are used to evoke feelings linked to the product a seller is trying to sell, screaming that it is taken well care of, but not guaranteed to last.
There is no agreement or anything, it depends on the seller, stores, and sites. Understand the risks when it comes to purchasing second-hand items, especially when it comes to hardware, electronics, or anything with high value. Make sure you read and understand the seller's policy on returning and warranties if applicable.
Certified Pre-owned
Pre-owned is a word majority used for marketing a used item, but Certified Pre-owned (CPO) has a different approach and meaning to it. CPO is usually used in the car industry, where it describes that the parts inspection is done by the manufacturer or the dealers themselves, very similar to Certified Refurbished.
3. Open Box
It is somewhat equivalent to a brand new product. The name itself says it, open box. The products are already removed from the box or original packaging and used for demo purposes at retail stores. Rarely, could be unused returns from the customers as well. Hence, technically open box items can't be claimed as brand new.
Companies offer great discounts on the wear and tear that has appeared on the box, which makes it worth buying. Most of the bulk open box products are not even turned on in the first place, it's just a mess or tampering with the packaging.
Whenever you are planning to buy an open box unit, make sure you are buying it from reliable dealers who offer the manufacturer's warranty. There are other features for prime members such as free delivery and extra discounts.
Why sell on Amazon?
Products that are used can be highly beneficial, especially to sellers. It provides an avenue of growth; here are some pointers to why they sell renewed products, especially on Amazon.
Large Potential and Low competitors
The competition to sell items on Amazon stores is in a different league. The number of sellers is increasing day by day on the platform, and the competition keeps rising. This takes a toll on the sales of each seller, it's a chain link one affected by the other.
The market for renewed products is yet dilute, the items are thoroughly checked for any wear and tear before they are shipped. The quality testing is strict and hence Amazon can cancel out all the unnecessary sellers entering the space.
This is really good news for those professional sellers struggling to make their ground on the regular Amazon store, where the competition is fierce. Amazon sellers can join this exclusive marketplace under the Amazon Renewed program, where there is less competition and more area to grow.
Access to Amazon
Amazon sellers that join the Amazon Renewed program will still have all the access to Amazon features just like a regular seller, with immense growth opportunities. The access is enabled to tools such as Amazon Seller tools, Amazon FBA, Prime shipping, and not to mention millions of consumers around the world. People are looking for used items and low-cost products, that is where you come in handy.
Growing Catalog
When you sell used products, it provides an opportunity to gather sources and expand your Amazon inventory as selling and maintaining inventory of new products can be tough since many sellers are trying to find ways to earn.
The cost of expanding Amazon's inventory and sourcing new products can be expensive on the other side. Most of the sourcing can be done through online sellers, garage sales, thrift stores, etc. At a cheaper cost, you can source products on Amazon Renewed with much higher profit margins. The growth potential in this area is still unexplored by true sellers.
Certified and trustworthy products
The quality assurance process of the Amazon Renewed program can validate your products, thus increasing trust in the brand and increasing sales overall. Other E-commerce sites are tough to sell refurbished products, that's where Amazon comes in handy. They process everything seamlessly and make sure that the customers get the best quality possible.
There is a lot less trust when it comes to refurbished items since other third-party sellers don't provide any guarantee. The trust level between the customers and the loyalty of sellers is rather too low. That's where Amazon shines, its renewed program brings trust and confidence to people in purchasing renewed products on Amazon.
Pros and Cons of selling on Amazon
The decision of selling items on Amazon Renewed brings in a lot of pros and cons, specifically for small businesses. If you are up to making living generated from the revenue from the renewed program; here are the things that you need to have in mind:-
Pros:-
1. Trusted Platform
Amazon, the name itself is enough to gain the trust of people. Amazon Renewed is a trustworthy program, unlike other selling marketplaces. There is security, one can sell items without having to worry about getting conned or scammed.
2. Offloading Products
Small Companies that constantly keep changing location, selling office equipment and other supplies can be a way to offload items and make some bucks. Consumers are always on an eye out looking at great deals, this can be a useful business tool.
3. Customer base
Amazon is a trusted source, it has millions of loyal fan bases to target. Many products can be targeted at the customers, you can hit millions at once. Thanks to their security and service
4. Less Competition
The Amazon Renewed program has very strict rules and regulations to follow, the filter process is tiring, and selected items must have passed the high-quality tests. Thus the competition for refurbished products is very less.
You'll find an audience for your items within a short period compared to the regular Amazon Store, the profit margins are good since you need not worry about other sellers.
Cons:-
1. Return rates are high
The risk of selling renewed products on Amazon is their high return rates. Amazon offers, full repayment or replacement within 90 days of purchase if the buyers aren't satisfied. This can be challenging to the sellers willing to make profits.
2. Unable to control pricing
Under the Amazon Renewed program, sellers don't get to set prices for their products. There is a company policy to be followed, the pricing is set automatically and should be 5% less than the price of a new product. This does make an impact on the Seller's potential to make revenue overall from the program.
3. Cannot be detected easily
The major drawback of listing under Renewed program is that they appear in search results in between the new products. Hence, sellers are expected to make sure to differentiate their renewed products from the new products to avoid confusion.
4. Impact on Branding
If you are too brand cautious, then the Amazon Renewed program may not be the right option. This could be a major case with luxury items that depend on Elite customer handling and brand-building creation. Such high-valued brands won't prefer to switch to Renewed products from the regular ones.
What products can you sell on Amazon Renewed?
Through the Amazon Renewed programme, things that can't be labelled as "new" but are in good enough shape to satisfy both Amazon and customers' standards can be sold on the Amazon marketplace.
You must abide by the programme regulations, product quality policies, and warranty requirements for refurbished and pre-owned products; meet the performance threshold, and accept the programme terms and conditions to be approved as a seller of refurbished and used goods.
Once you've met the requirements, you can sell the consumer the following types of things at amazing pricing:
- Cameras
- Mobile Phones
- Home Appliances
- Power Tools
- Video Game Consoles
- Kitchen Appliances
- Tablets
- Personal Computers
- Power Tools
- Television
You can market your refurbished, used, and open-box goods to millions of Amazon shoppers worldwide by using Amazon Renewed. If you fulfil the performance standards and can provide high-quality goods that have been examined and found to function and appear like new, you can sell the products
How to join the Amazon Renewed program?
Not everyone can enter the Amazon Renewed program, its a very filtering process, and here's how you can apply to be a seller:-
Become a registered Amazon Seller
To sell anything on Amazon you need to have an Amazon seller account, so is the case with selling refurbished, pre-owned, and open-box products. Create a Seller Central account and become a qualified Amazon seller.
Here are a few things you might need to know before signing up for Amazon's Seller Central:-
- A business Email address
- Tax papers
- A credit card
- A government ID
- A Valid phone number for business communications
- A business bank account
You may also try enrolling on Amazon Brand Registry, which provides sellers with tools for hassle-less business operations on Amazon.
Understand the Requirements
There are a set of criteria to meet before sellers go on listing their products under the Amazon Renewed program. You need to be accepted after applying. The Sellers are required to prove that their products are working and look just like new.
Here are the requirements to be met to join the Amazon Renewed program:-
1. Providing invoices for the refurbished products
2. To provide a minimum warranty period of 90 days for refurbished products
3. In case you are already an existing Amazon seller, you should have to maintain an Order Defect Rate(ODR) of 0.8% or less in the past 90 days
4. You need to provide a minimum of 8 images for review if you want to sell factory refurbished items that have no manufacturer warranty. The images must contain the display of the box that the product will be shipped, the item, and packaging inside and outside of all sides.
Find product source
Sellers must show Amazon that they have enough inventory, you don't need to fill your inventory with anything random. Take time and analyze before purchasing (listing) the products on Amazon.
1. You need to search and select products that are of high demand and low competition, those which aren't sold by a lot of sellers at the moment.
2. Select the item that isn't sold by Amazon, the chances of selling such products are high, this way you won't have to compete with the rankings.
3. Make sure to designate competitive prices for your products.
Source products
After all the market research, you find what fits the same for you to sell. Now you will have to source your products; here's where you can look into:-
1. Liquidation Companies:
Excess merchandise are sold often by the manufacturers to liquidation Companies, they are later refurbished and resold to other third-party sellers.
2. Manufacturers:
Usually retailers and third parties buy their merchandise directly from manufacturers and sell them as renewed.
3. Alibaba:
You can choose to buy wholesale certified - refurbished goods from Alibaba if you want to go Private Label.
Apply for the Amazon Renewed Program
Once you have found your fit in the market and decided on your sourcing, it's time for your last step. You just need to visit the Amazon Renewed page and apply. After 10 business days since you applied, you will be hearing from them.
1. Once you get approval, you can list your products on Amazon.
2. Those accepted to the Amazon Renewed program may not be able to list on all Amazon ASINs.
3. General Amazon gating guidelines may apply, contact Amazon Seller Support to request grant approval of specific brands.
4. You may not be able to create a new "Certified Refurbished" ASIN if one already exists for the same model, be sure to check this.
5. Make sure to follow Amazon's ASIN Creation Guidelines
6. Certified ASINs should be listed under the "New" type of condition, which will enable sellers' offers to win the Buy Box.
How to Sell Products on Amazon Business:
Amazon is a well-liked marketplace for both buyers and sellers. If you don't already have one, you must first sign up for an Amazon seller account. Amazon gives you the choice to sell one item or thousands with its two selling plans (Individual and Professional), but you can also think of them as regular and premium.
Before you start the registration process, choose the plan that is most appropriate for your company. While sellers using the professional plan pay $39.99 per month regardless of how many things they sell, those using the individual plan pay $0.99 per transaction.
If you sell more than 40 items each month, the Professional package is highly recommended. You can change your mind at any time, so don't stress if you choose the wrong one.
Individual Plan
You can choose an individual plan. If you sell fewer than 40 products each month, you don't need sophisticated selling tools or programmes, and you're still considering what to sell.
Professional Plan (For Business)
The professional subscription, however, allows you to sell more than 40 products per month, gives you access to more selling analytics and APIs, and lets you sell through platforms like Launchpad or Handmade.
If you have a brand, Amazon has resources to help you develop, expand, and safeguard it. Enrolling in Brand Registry will give you access to more advertising alternatives, suggestions for boosting traffic and conversion, and the ability to personalize your brand and product pages while protecting your intellectual property and trademarks.
So, as a business, signing up as a professional will benefit you. You'll have access to your Seller Central account once you sign up to sell on Amazon. Consider using Seller Central to be your primary selling resource on Amazon.
It is a gateway to your Amazon business, a place where you can manage your selling account, add product details, update your inventory, handle payments, and locate content that will help you operate your Amazon business. You can list all of your products there as well.
Utilize the Amazon Seller App to manage your business from your phone, including tracking sales, completing orders, finding things to sell, answering inquiries from customers, taking and editing high-quality product photographs, and creating listings.
You have to create a product listing before you can sell something on Amazon. Create a new listing or match an existing one if another seller is already offering the same goods on Amazon (if you are the first or only seller).
Depending on their selling strategy, vendors upload and list their products in different ways. Simply put, individual sellers list products one at a time, whereas merchants using professional seller accounts have the option of listing their products in large batches using bulk uploading or inventory management with third-party systems.
You won't need to supply a product ID if you match a listing because it already exists. You might need to buy a UPC number or apply for an exemption if you're introducing a new product to Amazon.
The product detail page will undoubtedly be familiar to you if you've ever bought anything on Amazon. Customers may get all the necessary details regarding a certain item there. When a product is offered by many sellers, Amazon compiles information from each offer into a single product description page.
Along with other sellers and manufacturers, you can suggest product information on a product detail page and ask for detail page reviews if you believe the information is inaccurate.
Amazon sellers have two options for getting their products to customers: They can handle it themselves, managing their inventory and shipping products to customers (merchant fulfilment), or they can have Amazon handle packaging, labelling, and shipping their products through Fulfillment by Amazon (FBA). You just need to choose the approach that works best for your company from among the benefits that each strategy offers.
How to Sell Branded Refurbished Products on Amazon
A terrific place to start selling goods and making money is Amazon. It offers third-party sellers an opportunity to make a career without the requirement for physical stores because it is the largest e-commerce platform in the world.
Branded used products can be sold on Amazon, but there are a lot of requirements and guidelines that must be followed. One of the most well-liked platforms for the resale of goods is Amazon.
Many people purchase goods elsewhere and then resell them on Amazon for a profit. You could even base a whole company's operations around this technique if you go about it the right way. On Amazon, you can resell any goods, branded or unbranded.
Although Amazon does not place any restrictions on the ability to resell any products, some guidelines must be followed. Usually, restrictions are imposed by the platform, not by the business that makes the platform.
The majority of brands are, in fact, secure for resale. Just because it wouldn't be true, you can't say anything is "brand new" or "straight from the manufacturer." If you are reselling any product, you can't claim that product to be a new one.
You have to provide the right information to your customers. When selling on Amazon, you must understand that the marketplace is set up to make it simple for just about anyone, including the brands themselves, to post things on the website.
Listings must be priced lower than or at the same level as the suggested pricing. Experts in resale pricing typically advise pricing products at 50% of their original cost if they are still relatively fresh, 25% for anything a few years old, and 10% for everything else. Of course, there are exceptions.
How to Sell Refurbished Products on Amazon for Free.
The fees listed in the Selling on Amazon Fee Schedule will be increased by a Renewed Program fee if your Selling on Amazon account is approved for Amazon Renewed. This additional charge varies depending on the category and only applies to sales of renewed products linked to your account.
- In addition to the regular category referral fees, there will be an additional 2% charge for newly purchased and unlocked cell phones.
- Additional category referral fees of 1% will be added to the price of all other refurbished products.
Amazon will only charge you the lesser of the applicable fees listed below and any other fees they may have disclosed to you (such as promotional fees that Amazon may provide from time to time). Certain vendors, such as warranty suppliers and other service providers, are exempt from this and will continue to pay selling fees at the rates outlined in their programme agreements.
When you have active listings, the Professional Selling Plan costs the US $39.99 per month. However, individual selling plans, it's free of charge. A separate cost might be charged if you have active listings in other nations or regions utilising merged accounts.
Amazon collects the buyer's payment when your product sells (including the price and any shipping, gift wrap, or other charges). Books, music, video, and DVD (BMVD) professional account sellers can choose their delivery costs, including providing free shipment (for more information, go to Activate custom BMVD shipping rates). BMVD products will be subject to individual account sellers' standard shipping charges from Amazon.
To satisfy the increasing demands of merchants, it has introduced its FBA service. With the help of this service, sellers can use the platform's vast consumer base and distribution network to realize their business goals. It's the most common platform option for shops. There isn't a per-item charge for professional sellers. However, there is a $0.99 fee for each item sold by individual sellers.
How to Sell Refurbished Products on Amazon from Home
All you need is a smartphone or a computer with an active internet connection to sign up as a seller on Amazon. The registration process for new sellers on Amazon is quick and free. As a result of the development of technology in recent years, ambitious business owners now have access to a variety of home-based business options.
Home-based businesses are now a reality for millions of people all over the world, thanks to the easy availability of high-speed internet on a variety of devices and applications, as well as a shift in people's attitudes toward the nature of work.
Frequently asked questions
Refurbished products are not second-hand or used merchandise, according to Amazon. According to the e-commerce behemoth, the seller has these products properly inspected, tested, and cleaned so that they perform like new. Products sold as Amazon Refurbished have undergone testing, repair, and refurbishment to look and function like new.
All open-box and refurbished products sold on Amazon Renewed will include a card containing the name, contact information, and email address of the warranty provider. You may view the products that are covered by brand warranties here. Sellers of open-box and reconditioned goods are responsible for providing warranties for the remainder of the merchandise.
Currently, Amazon sells used laptops, smartphones, tablets, and books. To display just used goods, you can search and filter the results based on conditions. The manufacturer offers a six-month warranty on the item. New-Like Used: The phone's screen is not damaged, dented, or scratched, and it functions well.
All accessories, including the charger, original bill, and packing, are included. There could be a six-month seller warranty. Even if the object has signs of wear, it still functions well. It might be marked, have distinguishing markings, or have aesthetic flaws. The packaging for the item can be damaged upon delivery or changed. The item may be missing some components, add-ons, manuals, or assembly tools.
Refurbished and renewed generally refer to the same thing. However, Amazon's renewal has deeper implications. It also includes products that are open-box and already owned, in addition to refurbished products. Products that were presumably used but were in better shape when they were returned than they might have been having they been restored.
The words "(Renewed)" in the product name on Amazon indicate that the item is either refurbished, pre-owned, or open-box, and that it has been thoroughly examined and tested to function and seem as new.
Used but returned by the return policy is what is meant by "pre-owned." Refurbished indicates that it was returned to the manufacturer for maintenance. It was damaged or flawed, fixed, and then resold.
Refurbished equipment may require some cleaning, maintenance, or other upkeep: Refurbished appliances fall in the middle of new and used. They might be used equipment that goes through maintenance before being resold, or they might be units that were returned soon after being purchased.
A product that has been certified refurbished or manufacturer refurbished has undergone in-house testing and repairs. The best location to buy refurbished laptops and computers is here. Because certified refurbished products are safe to use, you can feel secure.
Because of the knowledge and equipment employed by the manufacturer, certified products are typically the superior choice. Even so, there are a few reputable third-party refurbishing businesses that do excellent work updating those devices.
Certified RefurbishedThe same limited guarantee that comes with a new gadget is offered with Amazon Devices, which function and appear brand-new. Any merchant can list certified reconditioned products on Amazon. To even be taken into account as a seller of certified refurbished goods, you must maintain a high Best Seller Rank (BSR).
Therefore, it's in your best interest to monitor the data on your seller dashboard to make sure you continue to sell above the minimum standards. The item may be still in its original packaging.