It’s no secret selling on Amazon seems a bit…overwhelming. There are lots of terminologies, guidelines, and programs to learn. But if you plan to sell pre-owned or refurbished products, you’re going to want to dive into Amazon Renewed first.
Questions you may ask yourself are: What Does Renewed Mean on Amazon? And how can I sell refurbished products on Amazon?
In this guide, we’ll explain everything you need to know about how you can sell refurbished products on Amazon with Renewed. By the end, you’ll be ready to sell refurbished products in no time!
Is Amazon Renewed the Same as Refurbished?
The term “renewed” is Amazon’s way of referring to refurbished and pre-owned products.
You may see renewed and refurbished are used interchangeably throughout Amazon and wonder: is there a difference?
The answer: nope! People just use both words. But Renewed sellers are different from Amazon stores carrying certified refurbished products.
Amazon’s team thwarts the risk people may associate with pre-owned, refurbished products by making Renewed sellers experience a stringent vetting procedure. Customers will see your store first and know to trust purchasing discounted items from you.
Considering 48% of online shoppers chose a large e-commerce marketplace, signing up for the Renewed program gets your renewed products in front of a lot of customers.
Who Is Amazon Renewed For?
Amazon Renewed is for qualified manufacturers and third-party sellers or refurbishing companies. To be eligible, the products must be either:
- In open-box condition
Here’s what each term means.
These are generally worn products, returned for defective parts or other damage, restored to like-new condition.
Like refurbished products, they’ve been used and returned but are often in better condition.
These products were opened and removed from their box but were never used and are still, technically, brand new when returned.
Types of Products You Can Sell on Amazon Renewed
As we mentioned, you have the option to sell open-box, pre-owned, or refurbished items. Most eligible products are electronics, appliances, or tools. The main condition is anything sold must work and look like new products.
Eligible sellers can list items in the following categories:
- Automotive parts
- Smartphones & tablets
- Video game consoles
- Gardening Equipment
- Personal computers & laptops
- Power tools
- Home & kitchen appliances
- Office equipment
- Musical instruments
As you can see, there’s a wide umbrella of things to sell on Amazon Renewed. But, you’ll need everything inspected and tested. Then you’ll need to earn Amazon’s approval.
Qualifying for Amazon Renewed
If you’re looking to make sales on Amazon’s renewed marketplace, you’ll need to meet the requirements in place to ensure your company’s quality and customer satisfaction.
Professionally Inspected Products
Sellers have to prove product quality with a full diagnostic test. You should inspect every item for possible damage, and that includes both refurbished and open-box products. Amazon wants your products to look and work like new.
Your inspection process must produce a full diagnostic test, and you should have your product cleaned. Professionally inspected products will be tested to see what works and what doesn’t. If your report details defective parts, you’ll need to replace them before Amazon lets you sell.
Any products sold need to look like-new too. Therefore, have any cosmetic damage repaired.
This testing isn’t just about getting in on Amazon Renewed. As a seller, getting your pre-owned, refurbished, and open-box products inspected and tested is a great way to have customers trust your business. The process is entirely worth it and makes attracting customers easier.
Customers love a good warranty. And your products are required to have a nice, 90-day limited warranty. This is called the Amazon Renewed Guarantee.
Your warranty is required to cover any possible defects, but it excludes poor installation or lack of maintenance on the customer’s end. The Amazon Renewed Guarantee means customers are entitled to a full refund or replacement within 90 days of receiving their items.
Discounting Product Price
Everything may look and work like new, but you’re not selling new products. Your customer is looking for a discounted price, and Amazon wants you to give them just that.
Amazon policy requires the price of refurbished, pre-owned, and open-box products must be discounted by at least 5%.
Sound Business History
To earn an Amazon Renewed label, you’ll need to have any already established (and trusted) reputation through selling on Amazon. To sign up, you’ll have to prove the standing of your business via invoices.
For A New Amazon Seller
You’ll have to produce invoices totaling at least $50,000 of pre-owned product purchases. Or they should reflect a minimum of 500 refurbished items.
Heads up: Product sales for $15 or less do not count towards your 500 units. To include lower-priced units, submit invoices with the unit amounts blacked out. Instead, use the dollar amounts.
Is your business selling Apple products? From the last 3 months, your invoices must total $2.5 million in refurbished products.
For An Existing Amazon Seller
Your approval process is a little simpler. Amazon requires your order defect rate to fall under 0.8% within the last 90 days.
How to Begin Selling Refurbished Products on Amazon
To get started (and make money), you’ll need to do a few things first.
Step 1: Sign up as an Amazon Seller
Naturally, you must register as an Amazon Seller. You can easily do this using your email on Amazon Seller Central.
Note: This is just to sell products on Amazon and is not approved for a renewed Amazon store.
Step 2: Decide What To Sell
You can sell any of the products we’ve outlined above, but it’s in your best interest to research the marketplace first. We can’t express the importance of research enough. Take the time to evaluate your opportunities and your niche.
When conducting research, here are tips to maximize your profitability:
- Look for high-demand products with low competition.
- Use a product research tool to speed up the process.
- Avoid products sold by Amazon.
- Price competitively. Products sold on Amazon Renewed require a 5% discount. However, it’s best to stay between 2% of the “used” price and 20% below the “new” price, easily for high-demand items.
Step 3: Purchase Inventory
After you’ve researched your market competition, start sourcing your products. And where should you source from?
An easy choice: liquidation companies who purchase excess merch from manufacturers. Why? They handle the refurbishment process for you.
Just make sure their price point still allows you to profit. And check out their testing process and ask for any reports you can.
You can also buy from manufacturers themselves. However, you may have to handle refurbishment.
Finally, there is Alibaba. Sellers often use this service, and you’ll most likely receive the best quality refurbished goods there. Vet product manufacturers to avoid scams.
Step 4: Apply to Sell with Amazon Renewed
The final step is applying for that Amazon Renewed label. Make sure you meet the requirements we’ve discussed to sell Amazon renewed products.
If everything’s in order, expect approval within 14 business days. Then you can start making money with renewed Amazon products.
Is the Approval Process Worth It? How is it Any Different From Being a Certified Refurbished Seller?
There are plenty of reasons to choose this seller program!
You’re automatically rewarded as you become part of an exclusive program, which helps avoid niche competition. Since not just any person can sell through this program, you have the opportunity to seriously make money – more so than in the regular Amazon marketplace.
If you offer certified refurbished items but don’t join in the program, you’re likely missing out on profit. 81% of consumers opt for trusted stores. Amazon’s dedication to quality assures your customer base that trust.
The Amazon Renewed Wrap Up – Is It Good?
If you’re selling certified refurbished products, there’s no reason you shouldn’t join the Amazon Renewed program. You’ll have to meet stringent requirements (like product testing, offering warranties, proving business history, and discounting items), but you’ll rise above your competition and gain trust.
Don’t just be a certified refurbished product seller (that’s a mouthful, anyway) – be an Amazon Renewed seller. You have a major opportunity to expand your business and brand as you’re tapping into a new branch of the market. The effort to sell pre-owned items can result in high rewards if done properly. Just remember to follow the guidelines mentioned above in this guide!