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The seller’s guide to Amazon Renewed

11 min read
Tamilore Oladipo

Without reselling second-hand products on Amazon, many dollars would be going down the drain instead of into your pocket. Overall, the net worth of the refurbished selling market for consumer electronics equates to over $10 billion. So, if you’re on the fence of indecisiveness, hop over and start selling your refurbished goods now.

Amazon Renewed’s thorough process of validating second-hand goods to resell allows you to incorporate them into your inventory. As a result, you grow the sales, inventory, and customers — producing more success for your business.

What is Amazon Renewed?

Amazon Renewed is an online marketplace where merchants can sell refurbished goods. You can find many second-hand products, from laptops and smartphones to air fryers and lawnmowers. The items on this specific marketplace are owned by Amazon or from previous customers who returned to Amazon sellers.

The products inside are refurbished, inspected, and tested by Amazon-qualified suppliers to ensure they are good to resell. The process of inspection and testing typically involves a diagnostic test, renewal of any malfunctioning parts, and in-depth cleaning. The steps ensure your merchandise is capable of reselling and works almost as well as new. Merchandise may have minor problems like dents or scratches, but overall, they are in excellent condition to sell.

Items that customers return with light wear and tear qualify as Amazon Renewed products, falling under one of three categories:

  • Open-box: Open-box items are the products buyers can get that are closest to “brand new” because they have yet to be used. The only thing that sets them apart from brand-new products is the opened packaging.
  • Pre-owned: Pre-owned products are items that previous customers have lightly used. They still function fully, though they may have minor cosmetic issues. This product type will last longer than refurbished goods because they have no defects and function just fine.
  • Refurbished: Refurbished products usually have some issue — the sole reason why customers return these products quickly. These used items go through restoration to be labeled as in new condition or the closest thing to it. They are the least popular type because they have different problems, such as defective wiring, damaged parts, and other malfunctions.

In addition to the types of second-hand items you can sell, an exceptional warranty — Amazon Renewed Guarantee — comes with buyers’ purchases. The agreement allows buyers to return items within 90 days with the original receipt. Furthermore, there is Amazon Renewed Premium. Products that fall under this higher tier have a warranty that lasts for 365 days.

The extended period offers extra comfort and security for customers, knowing that no matter what happens, they have the flexibility to return if something goes wrong.

Related: How to sell stuff on Amazon

Benefits of using Amazon Renewed

Online sellers who take advantage of adding Amazon Renewed products to their inventory open themselves to the opportunity of gaining more customers and sales. Your contribution to the program ensures that used products can be enjoyable to new customers while you simultaneously make bigger profits for your business.

Makes use of second-hand goods

Amazon Renewed offers you a marketplace to sell returned items with a guarantee to your customers that they’re still in perfect (or near-perfect) condition. Rather than reselling a refurbished good on your own, you can rely on Amazon Renewed and its resources to verify its condition to resell.

Imagine that your customer Henry buys a brand-new air fryer. After using it once or twice, he realizes that he doesn’t like this particular air fryer because it lacks a few features that another brand offers. Henry’s next thought, of course, is to return it and purchase a different one.

In this case, don’t let a barely used item crowd up your warehouse and go to waste. Your best option is to resell it as an Amazon Renewed pre-owned product because it is still in stable condition. Of course, it has to pass inspection, but such items will qualify to go back on Amazon to sell in most cases.

You wouldn’t want to resell these types of products through your non-Amazon store because you lose the benefit of being backed by Amazon Renewed. The program’s testing and inspections are what verify that your product is suitable to resell.

Enters you into a more exclusive selling market

The Amazon Renewed program holds a high standard and is only available to select sellers.

If you meet Amazon’s performance criteria and supply quality products that pass inspection and perform like new, consider yourself a new member of the exclusive program.

This rarity puts you in a smaller ecommerce selling category. So, good news for you: there’s less competition in the world of Amazon Renewed because you are not crossing paths with all the merchants selling new items.

Boosts your list of customers

Once you’re a part of the Renewed community, you can reach an entirely different group of customers — those on the fence about paying a full price for different products. You can increase their chances of buying products by selling things for less than brand new items.

And to go a step further, if their satisfaction levels are high, they are likely to return to you for other items and refer you to their friends and family. The more customers you gain through word of mouth, the higher the likelihood of you enticing engagement.

Because Amazon Renewed’s program is all about quality assurance, customers can count on you to provide products in good condition. The more customers who rely on you to offer that validity, the more they will spread the word — leading you to boost your customer base.

Risks of using Amazon Renewed

While Amazon Renewed is an excellent way to grow your business, it’s not without problems. From the level of competition with new products to the hesitancies from customers, it’s crucial to know that joining the exclusive club will not mean that everything will be all roses.

Competition against new items

Because technology and appliances are forever evolving, people tend to opt for new products instead of Renewed ones. Since new items have never been touched before, buyers know they’re purchasing something with a longer lifespan.

But fortunately, the biggest pro to selling Renewed goods is the low price tag that comes with it. Renewed products can’t compete with new items in terms of long-term quality, yet they will be significantly cheaper, making the lower quality worth it.

Lack of trust from customers

Previously owned products can be challenging for buyers to trust because they are unsure of how good the conditions of the items are.

You can gain the trust of customers by giving details on how new and unused the items are. Of course, this will require you to collect details on the reasons for returns from the previous customers. But providing such detail will help future buyers trust you and feel more confident in purchasing.

To increase the chances of customers opting for your “open-box” and “pre-owned” items, remind them about the extended warranty on products. Ensure that whatever they purchase is completely refundable within 90 days (or 365 for those with Premium).

It’s also helpful to remind customers that items with the “refurbished” label have gone through a thorough examination and testing by highly reputable third-party sources.

Related: Build brand trust through digital marketing

4 common Amazon Renewed questions

Potential sellers like yourself and buyers of Amazon Renewed merchandise all have suspicions of how it all works. We’re here to put some assumptions to rest and answer questions that may have come to mind before or while reading this guide.

1. How do I join the program?

Because there are hundreds of millions of products that people sell on Amazon, there is a review process that you and your products need to pass before Amazon accepts you to sell exclusive Renewed products.

  1. Sign up to sell on Amazon: You must register to be an exclusive Amazon Seller before anything else.
  2. Review qualifications and apply: Secondly, review past purchases to see if you have a minimum of $50,000 worth of refurbished purchases within the last 90 days. The amount is to ensure that you have enough inventory to sell. In addition, you need an Order Defect Rate (ODR) of 0.8% or less. For reference, an ODR is a key indicator that determines how well you manage experiences with customers. Once you meet the above criteria to ensure you qualify, you can apply to join the program. In addition, you must agree to back your merchandise with Amazon Renewed Guarantee.
  3. Once you’re in, start selling!: After Amazon approves you to sell Amazon Renewed products, it’s time to add them to your listings. Through the Amazon Renewed program, you can choose to use FBA (Fulfillment by Amazon) to handle your orders or fill them on your own.

2. How reliable is Amazon Renewed?

In short: very reliable. It’s a requirement for all sellers to prove to Amazon that they are eligible and capable of selling refurbished products that pass inspection.

You can trust Amazon Renewed to tell you which category an item falls under — open-box, pre-owned, or refurbished — to determine its level of newness. Also, each Renewed package comes with a 90-day return, at the least. So, buyers can rely on Amazon to provide them with a refund or return within the duration of their guarantee if they request one.

In addition, Amazon replaces necessary parts and accessories before merchants add them back to their listings to ensure they are up to Amazon Renewed’s standards.

Overall, Amazon is a very popular online store — exceeding the daily traffic that other virtual retailers receive. In turn, they have the funds to invest in the security for Amazon Renewed so that sellers like yourself can have trust when selling.

3. What products qualify for Amazon Renewed?

Before jumping into the types of products that qualify as Amazon Renewed products, all must undergo testing and certification. If items need repacking, relabeling, or replacements, that needs to take place before receiving the Amazon Renewed label.

Amazon buyers can choose from a range of Amazon Renewed products: smartphones, laptops and desktops, tablets, home and kitchen appliances, game consoles, office products, and more.

As long as it is a technological device or appliance for homes and offices, you can find it on Amazon Renewed’s list. On the other hand, shoppers won’t find items like clothing, produce, or furniture through the Renewed program.

4. Why is it best to sell reusable goods via Amazon Renewed?

If you’re looking to grow your business and make more sales for the products you sell online, it will be worth expanding your inventory and reselling the items sitting in your warehouse.

One thing is for sure: Amazon Renewed will increase the chance of your items selling. Here are a few additional reasons why it’s worth it to join the exclusive program:

  • Less competition against other sellers: Amazon Renewed’s exclusivity allows you to connect with customers that non-Amazon Renewed sellers don’t have access to. The more customers you have to purchase your pre-owned goods, the better the chance is for you to develop a long-lasting relationship.
  • Grow your brand: Through Amazon Renewed, you are working against fewer competitors. This allows your target audience to connect more efficiently with the products you sell. Look at what keywords other popular, highly-rated merchants (selling new or used items) use for their products and apply to your own to expand.
  • Generate higher profit: Without restocking returned and used items through Amazon Renewed, your products are going to waste. Collect more revenue by repurchasing them to resell for a reasonable price instead. Create a solid strategy that helps you advertise to your target audience and set competitive prices.

Drive more sales with Amazon Renewed

Each day you don’t take the necessary actions to join the Amazon Renewed program to start selling your exclusive, refurbished products is another day of you mentally saying, “I’m okay with making fewer sales.”

Amazon makes Amazon Renewed exclusive so that not any and every product can be a part of the program. It’s in existence to help ecommerce sellers who have legitimate goods.

The process for you to make more sales and revenue is just three simple steps to building a solid brand and future success.

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