Last updated on June 23rd, 2023
Written by Mohamed Aden
If you sell electronics or home appliances online, you know how frustrating it is to receive returned products for various reasons. But there’s still hope for an Amazon seller—you can still sell these items through the Amazon Renewed program if they meet the criteria. Here’s a handy guide on how to sell refurbished products on Amazon Renewed and maximize its features.
There is no doubt that Amazon customers want the best value for their buck. And the best way to do that is to buy brand-new items. They trust that these products still work at their best because they are new, which makes them more reliable in the long run.
Because of this, most shoppers ignore pre-owned items. After all, not many people have the guts and luxury to gamble their money away on something that can be potentially defective. As a result, sellers find it difficult to sell such goods.
However, Amazon is trying to change customers’ preconceived notions about pre-owned and refurbished products through the Amazon Renewed program.
The program only allows sellers to sell pre-owned and refurbished products if they meet the criteria. In addition, not every product category is qualified. Check if your products belong to the following qualified categories before enrolling your business in Amazon Renewed:
You already know that selling refurbished and pre-owned products can be challenging with the average consumer’s bias towards brand-new items. But selling on Amazon and maximizing the Amazon Renewed program can be an effective business model if you play your cards right.
Before we dive into the business of this program, let’s first discover some of its advantages and disadvantages:
Amazon currently has almost 2 million existing sellers on its platform, which makes the competition tighter among sellers with similar product selections. But joining Amazon Renewed makes you become a part of an exclusive program.
Because only sellers who meet Amazon’s strict criteria can enter this program, this means less competition for you.
Because you are still within the Amazon marketplace, you also get to enjoy all the benefits that come with it, such as a huge customer base and flexible shipping options. With Amazon’s monthly visitors of over 2 billion, you can turn this venture into a working business model to scale your online business.
Before Amazon Renewed was launched, only brand-new products were sold on the Amazon marketplace to ensure that customers would receive nothing but high-quality products. Unfortunately, this prompted customers to purchase refurbished items on other platforms for less, which can be risky.
Now, Amazon ensures their customers that refurbished products on Amazon Renewed program undergo a full diagnostic test and a product and packaging review, encouraging customers to confidently purchase like-new devices.
Plus, the Amazon Renewed guarantee makes you a more trustworthy and reliable seller on the platform.
As an Amazon seller, you know that receiving returned products is inevitable in your eCommerce business. Some customers sometimes return almost brand-new items that you can still sell afterward.
So, joining the Amazon Renewed program is a great way to resell refurbished and pre-owned products without losing money and contributing to worsening environmental problems.
Because of the nature of pre-owned products, sellers who opt to join Amazon Renewed must be aware of the risks associated with joining. One is the high possibility of returns, especially since Amazon offers a full refund or replacement under its 90-day guarantee and 1-year limited warranty.
So if the customers are not satisfied with the item, they can ask for a refund or replacement immediately, which can be challenging for third-party sellers.
Another disadvantage of selling through Amazon Renewed is that you have less control over the prices of the products. In compliance with Amazon Marketplace Fair Pricing Policy, sellers offering Renewed products must set a 5% or more discount than their brand-new counterparts.
While this seems reasonable, it can still affect your possible revenue from the program.
As mentioned above, you will have less competition among sellers of Amazon-certified refurbished products. But you cannot stay away from your biggest competitors—the sellers of your products’ brand-new counterparts. You might also have to deal with other sellers outside the Amazon marketplace.
Now that you know its pros and cons, are you ready to start selling refurbished products on Amazon Renewed? If you’re dedicated to selling through this program, here are some steps to get you started:
Before selling certified refurbished and pre-owned items through the Amazon Renewed program, you must be a registered seller on Amazon first.
Go to Amazon’s Seller Central website and create a selling account to start your journey on Amazon.
Only qualified Amazon Renewed sellers can sell refurbished products on the platform. To be eligible for the program, your products must pass Amazon's quality criteria. Here are some of the program's requirements:
To be eligible for Amazon Renewed, you must prove to the platform that you have enough inventory. You can do this by planning the products that you want to sell.
Before purchasing, ensure that you have the right products. You can tell if the product is right if it has high demand and low competition, is not sold by Amazon, and can be priced competitively. Using a product research tool can also help you find the right products.
Once you know which products match those essential factors, you can start sourcing those products through the following ways:
After determining the products to sell and finding the appropriate sourcing methods, proceed to the Amazon Renewed page to submit your application. Once you’ve completed the application process, expect a response from Amazon within ten business days.
The Amazon Renewed program might be a little challenging if you’re not familiar with the ins and outs of the platform. To help you drive sales through the program, here are a few tips for you:
In terms of pricing, set the prices of the refurbished products at least 20% lower than their original price when they’re brand new.
Implement a “Best Deals” promotion for your refurbished and pre-owned products. You can be eligible for Amazon’s Best Deals offer if you meet the platform’s product quality criteria.
Utilize Amazon’s Sponsored Products advertising program to drive increased traffic to your newly refurbished listings. For best results, it’s advisable to use both manual and automatic campaigns and implement a trial-and-error method.
Amazon Renewed has made selling Amazon refurbished products easier and more reliable. Through this program, sellers can now offer refurbished and pre-owned items to Amazon customers who want to receive high-quality products for lower prices.
But like any other program, it has its share of pros and cons. If you want to succeed in growing your business through Amazon Renewed, we can provide full account management services for you.
We have excellent and experienced account managers who can help you sell your renewed products and make your business thrive in the ecommerce platform. Contact us today.
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