Amazon's Renewed Program Profits from Returned and Refurbished Items
The Renewed Merchants Program was created by Amazon to allow Amazon eCommerce vendors to sell like-new, refurbished, pre-owned, or open-box items. These items are backed by Amazon's "Amazon Renewed Guarantee" and advertised as "tested and inspected" to assuage customer concerns about quality.
This article will explain what Amazon's Renewed Program is, define refurbished and renewed items, and explain how to become a seller in the Renewed Program.What is the Amazon Renewed Program?
Products offered on Amazon Renewed are sourced from reputable vendors who thoroughly check and test each item before selling it. Not only does Amazon's Renewed Program provide vendors with another potentially profitable revenue source, but it also benefits purchasers. The items sold via this program are offered at a reduced price while being of good quality.
Refurbished items that have been approved go through a rigorous quality control process. As a result, in order to sell Renewed items, sellers must apply and qualify. Before you apply, there are a few regulations to follow and performance indicators to grasp.
What is a Refurbished Product?
A refurbished product is one that has been returned to the original manufacturer or a third party for examination and reconditioning before being offered on Amazon. "Refurbished" is then added to the label. This seal guarantees that everything clients buy is trustworthy and as good as new without the hefty price tag.
- Refurbished items must fulfill certain functional requirements and provide complete transparency about the item's state. The following are the prerequisites for standards and conditions:
All components must be thoroughly tested in order to adhere to the quality control requirements. Customers' favorite features, such as screen resolution, audio, and battery life, are all tested as part of Amazon's quality control.
What Is the Difference Between Refurbished and Renewed on Amazon?
Within the Amazon Renewed program, you can find two types of second-hand items: Refurbished and Renewed.
Renewed refers to a used product that has been tested, and any non-working parts are replaced with entirely new parts. Refurbished products, on the other hand, are also tested and inspected, and any non-functional parts are repaired, or replaced by other working but previously used parts.
The differences are slight, and the condition of either product should essentially be the same – working like new!
Products sold in the Amazon Renewed Program are returned items that have been inspected by third-party companies. These companies are authorized by Amazon to ensure that what is advertised by the seller is accurate.
How Reliable are Amazon Renewed Products?
As previously mentioned, Renewed products must meet certain criteria to be sold on Amazon Renewed; this ensures that what customers are purchasing is reliable and as good as new without the price tag attached, thanks to extensive testing.
However, what is being sold as Renewed on Amazon is only certified to be in good working order without any damage or physical flaws within reason. For example, if an item is cosmetically flawed, such as showing scratches and dents, it may be recertified to appear new, but will not pass inspection if damages cause internal components not to work correctly.
For any other major defects such as faulty batteries or what makes an item what it is, the product will not be resaleable on Amazon Renewed without first replacing what’s broken with working parts.
Is Renewed Lucrative?
For eCommerce companies that are looking to sell what are typically considered “used” or second-hand items, Amazon Renewed is a great option. You can offer refurbished/ returned products at a higher price point on Amazon than on other platforms and customers have the reassurance of Amazon’s 90-day return policy.
To be considered for a Renewed Merchant account your products must match the condition of other Renewed products and need to pass an inspection by a third-party supplier.
Next, let’s discuss the steps you should take to sell Renewed on Amazon:
Become an Amazon Seller
The first step in selling Renewed items is to join the Amazon Marketplace. To do so, you’ll need a professional seller account. You can apply for a Professional Seller Account online from the Amazon Merchant Seller Central Portal.
You’ll also need identification information and a valid credit card to be charged what it costs to sell on the platform when applying for an Amazon termed Professional Seller Account.
After establishing your Amazon Seller account, you must meet the Renewed selling criteria:
- Sellers must purchase a minimum of $50,000 in refurbished products within 90 days of submitting their application.
- Sellers must have sold at least 500 units of refurbished products to Amazon during the same period of 90 days.
- Sellers must provide a 90-day warranty on all their refurbished products.
- Products cannot be damaged, defective, counterfeit, or Amazon deems as “unsalvageable” in condition before being recertified to appear new and sold by a Renewed Merchant account holder.
- If your products don’t provide a manufacturer’s warranty, your brand will need permission before selling on Amazon Renewed.
- If your brand sells Apple products, you’ll need to apply for a special license before selling on Amazon Renewed.
If your products meet all the above criteria, you can submit your application for a Renewed Merchant account online from the Amazon Seller Central Portal.
Before you apply, you will want to have the following:
- A comprehensive inventory of what you offer for sale.
- A fully-stocked inventory on hand so that your products can be shipped quickly.
- The ability to process returns as needed.
You’ll also need all your current product listings reviewed by Amazon’s specialists before they are approved.
Apply For Amazon Renewed
Once you’ve met the criteria, you can apply to become a Renewed Merchant account holder.
At this step, you will be required to provide your business name, legal business address, phone number, and email address for contact purposes. You’ll also need to provide a Tax ID number or what’s referred to as an Employer Identification Number (EIN), which you get from the IRS.
After you apply, Amazon will review your application and let you know if it’s been accepted within five working days.
After being accepted, list your products using their Amazon Marketplace ID. You can find it by logging into the Amazon Seller Central Portal and clicking on Inventory > Manage Inventory. The number will be displayed at the top of the page menu bar.
To create a listing, go to Selling on Amazon > Add a Product. Your Amazon Marketplace ID will be what’s called a Vendor ID number in what’s referred to as what Amazon calls an ASIN (Amazon Standard Item Number).
You will need to enter what you are selling in a UPC product number format. At this point, you will have a Master Listing, which you can use as a template for future Renewed product listings.
After listing, press the Save and Finish button, and voila!
Pros of Amazon Renewed
Amazon’s high seller standard keeps Renewed competition low, meaning they only want the best of what’s offered for sale. This high standard means you will have less competition selling refurbished products than you will with new products.
Through Amazon Renewed, customers can enjoy lower prices. Buyers that participate in Amazon Renewed are looking to save what they can. This helps sellers provide affordable products while maximizing profits on new competitive products.
Cons of Amazon Renewed
One of the most common concerns expressed with refurbished, factory recertified, used, or open box items are what they will do to a brand’s image.
It can harm the image of what you're attempting to convey or what it means to be the greatest in what you offer if what you're selling seems like it was returned by a prior buyer before being repaired and recertified to be sold again. Before selling reconditioned things, every eCommerce merchants should think about this.
The way Amazon organizes Amazon Renewed products in search results might cause problems. Among the results of an Amazon search, refurbished and new goods display side by side. As a result, it may be tough for your refurbished item to stand out, and shoppers may be perplexed if there is no discernible difference between items.
Conclusion
The Amazon Renewed program may be a great opportunity for eCommerce retailers to boost revenue by reselling products that have been returned by consumers and recertified. Examine how adding a line of used items can affect customer perceptions of your company, but be sure to follow Amazon's quality criteria.