How to Increase Your Profits with Amazon Renewed
Amazon Renewed is a marketplace where ‘like-new’ meets savvy savings.
Consumers want to save money on the ever-rising prices of many commodities. But it’s always hard to find good, second-hand products online.
Now picture this: high-quality products, from the latest gadgets to must-have appliances, all meticulously inspected and restored, yet available at a fraction of their original cost. That’s Amazon Renewed.
Renewed isn’t just a hub for bargain hunters; it’s a goldmine for environmentally conscious consumers and a promising frontier for enterprising sellers.
But is Amazon Renewed reliable? How can you ensure that your refurbished products will work for your customers? And what can you do if the item falls short of expectations?
Let’s unravel the layers of Amazon Renewed, showcasing how it works, its myriad benefits, and how sellers can turn a profit in this thriving ecosystem.
What Is Amazon Renewed?
Maybe you’ve come across the “Renewed” label before, but what does Renewed mean on Amazon?
This program offers customers the opportunity to purchase refurbished, pre-owned, and open-box items. Products range from electronics to home appliances, all of which have been returned, previously owned, or slightly used.
The key feature of Amazon Renewed is its commitment to quality. Every item sold under this program undergoes a comprehensive quality inspection to ensure it functions and looks like new.
In short, customers can buy products that have been rigorously tested and verified to meet a high standard of performance and cosmetic condition. The Amazon Renewed store isn’t just a place to find used items; it’s a source for reliable, like-new products at a lower cost.
Qualified sellers have the opportunity to offer a variety of high-quality pre-owned products at competitive prices in several categories, including:
Smartphones
Digital Cameras
Audio Headphones
Home Kitchen Appliances
Power Tools
Personal Computers and Laptops
Tablets
Televisions
Video Game Consoles
Note: Review the detailed program policies for a comprehensive list of products you can sell.
Refurbishing Process
Many customers ask: Is Amazon Renewed reliable? To address this concern, the marketplace has a thorough process of repair and refurbishment, which sets the foundation for the reliability of these products.
There are 3 main categories of used items:
Open Box. Unused and returned products with an open package.
Pre-owned. Open-packaged items with minimal use.
Refurbished. Items with cosmetic wear, missing accessories, and extended use. To resell these products, the seller must fix them to the best possible condition.
Amazon Renewed focuses on the third category. The refurbishment involves several critical steps:
Diagnostics. Amazon’s technicians check and identify any electrical or mechanical issues, determining if repairs are necessary.
Battery tests, where applicable. Technicians check that a product’s battery life can hold at least an 80% charging capacity.
Upgrades. Amazon replaces any missing accessories or damaged parts when it’s needed. However, some replaced items may come from generic brands.
Cleaning and inspection. Each item goes through a thorough cleaning process to ensure they look as new as possible.
Repackaging, where applicable. Renewed products feature minimal wear and cosmetic issues (when seen from 12 inches away). Batteries are also tested to feature at least an 80% charging capacity.
When the process is complete, refurbished items get certified by Amazon and uploaded to the marketplace.
Product Conditions
The standard inspection and testing procedure is undertaken either by the qualified supplier or directly by Amazon. The aim is to ensure that all products are fully functional and meet one of four condition categories. These are:
Premium
Cosmetic: No visible damage when held 12 inches away.
Functional: Battery life over 90% of the original capacity.
Accessories: Original or OEM accessories and packaging.
Guarantee: One-year Guarantee.
Excellent
Cosmetic: No visible damage when held 12 inches away.
Functional: Battery life over 80% of the original capacity.
Accessories: Original or OEM accessories and packaging.
Guarantee: 90-day Guarantee.
Good
Cosmetic: Light scratches, barely visible at 12 inches.
Functional: Battery life over 80% of the original capacity.
Accessories: Original or OEM accessories and packaging.
Guarantee: 90-day Guarantee.
Acceptable
Cosmetic: Visible light scratches, perceptible at 12 inches.
Functional: Battery life over 80% of the original capacity.
Accessories: Original or OEM accessories and packaging.
Guarantee: 90-day Guarantee.
Amazon Renewed Guarantee
Renewed is a gateway into the second-hand market, offering shoppers the chance to buy second-hand products, backed by the Amazon Renewed guarantee.
This is a refund & return policy designed to protect both sellers and customers, which adds an extra layer of confidence for the buyer.
The Renewed guarantee grants customers the following safeguards:
Satisfaction guarantee. When the product doesn’t work as expected, buyers have a 90-day window to return the item. Then, customers may receive a full refund or a product replacement.
Renewed Premium. Some renewed items feature the Renewed Premium badge. In such cases, products have a 1-year return window.
Customer Support. Shoppers can submit claims or seek troubleshooting via the “Get Product Support” button. It is located next to the purchased item, on the “Your Orders” page.
Guarantee-covered items feature the words “Backed by the 90-day Amazon Renewed Guarantee” in the product listing page.
Such a guarantee sets the program apart from other sellers of refurbished goods. It underscores Amazon’s commitment to quality and customer satisfaction in the refurbished market.
In addition to the Amazon Renewed program, Amazon also offers the Amazon Trade-In, where customers can trade in their used items for Amazon gift cards.Trade-In provides a platform for customers to recycle their old items in a responsible and rewarding way.
Note: Theft, device tampering, and accidental damage are not covered under the Amazon Renewed Guarantee.
Benefits of Selling on Amazon Renewed
Amazon Renewed presents a lucrative opportunity for sellers, offering a platform that aligns with the growing trend of sustainable eCommerce.
This program not only caters to environmentally conscious consumers but also opens up a new revenue stream for sellers dealing in refurbished products.
Here are some key benefits for sellers participating in Amazon Renewed:
Access to a Large Customer Base
The program provides sellers with access to Amazon’s vast customer base, eager for high-quality, refurbished products at a reduced price. This exposure can significantly increase sales volume and market reach.
You may also find that there’s lower brand competition. This translates to increased chances to sell and delight consumers. Plus, it’s also an opportunity to improve your return and refund logistics.
Higher Profit Margins
Refurbished products often come with higher profit margins compared to selling new items. Sellers can acquire products at lower costs, refurbish them, and sell them at competitive prices while still enjoying healthy margins.
Amazon Renewed also provides sellers with innovative advertising and selling features. “Renewed” brands can get insights to optimize listings and promote items to set up a successful refurbished store.
Visibility & Engagement
Buyers are always on the lookout for trustworthy used items. In fact, some users wait for specific products to appear on Amazon Renewed.
If your brand has built enough trust by selling new products, you could follow up on that reliability to sell “like-new” products.
If they know you provide great products, they’ll expect the same when advertising renewed products.
Contribution to Sustainability
By participating in Amazon Renewed, sellers contribute to sustainable eCommerce practices. This program helps reduce e-waste and promotes the recycling and reusing of products, aligning with the global shift towards more environmentally responsible business practices.
How Can You Start Selling on Amazon Renewed?
The Renewed program is a great opportunity to grow your business as a certified, refurbished seller. It is a whole new market that allows you to build visibility, engagement, and credibility.
Here’s a step-by-step guide on how to start to selling on Amazon Renewed:
Step 1: Register as a Seller on Amazon
To sell refurbished and pre-owned products, you first need to be a registered seller on Amazon.
If you’re new to selling on Amazon, you’ll have to provide your details to set up your selling account. This initial step is crucial to gain access to the Amazon marketplace and its customer base.
Step 2: Qualify to Sell on Amazon Renewed
Qualifying for the program requires demonstrating your experience in selling refurbished products. The criteria include:
Providing supply invoices showing a minimum total value of $50,000 in qualifying refurbished purchases in the previous 90 days (180 days for categories like Home, Tools, Lawn & Garden, and Kitchen).
Existing Amazon sellers must have an Order Defect Rate (ODR) of 0.8% or less in the trailing 90 days.
For listing factory refurbished items without a manufacturer warranty, you need to submit at least eight images of a sample unit for product and packaging review.
Your company must back all refurbished products with the Amazon Renewed Guarantee and handle all claims under this guarantee.
For approval to list the Apple brand in the Consumer Electronics categories, you need invoices from the trailing 90 days totaling $2.5 million in Apple refurbished products.
Step 3: Start Selling and Grow Your Business
Once your application is approved, you can begin selling by listing your refurbished and pre-owned products or adding your offers to existing product listings.
When customers order, you have the option to fulfill the orders yourself or use Fulfillment by Amazon (FBA). FBA can be particularly beneficial as it leverages Amazon’s logistics and warehouse return policy, offering a streamlined process for handling and shipping products.
Tips for Success
Succeeding as a seller on the program requires more than just listing your products. It involves strategic planning and a deep understanding of the refurbished market.
Here are some tips to help you find success on this platform:
Quality is Key
Ensure that all your products meet the high standards of Amazon Renewed. This includes thorough quality inspection and refurbishment to ensure products are like-new. High-quality products lead to better customer reviews and repeat purchases.
Actionable Tip. Implement a rigorous quality control checklist for each product category you deal in.
Competitive Pricing
While refurbished products are expected to be more affordable than new ones, setting the right price is crucial. Research the market to understand the pricing strategy of similar products and price yours competitively to attract buyers.
Actionable Tip. Track price history and trends for similar products on Amazon. Set your prices based on this data to stay competitive yet profitable.
Detailed Product Descriptions
Provide clear and detailed product descriptions. Include specifics about the refurbishment process, product condition, and any warranties or guarantees, like the Amazon Renewed Guarantee. Transparency builds trust with customers.
Actionable Tip. Create a template for product descriptions that includes sections for product history, refurbishment details, technical specifications, and warranty information.
Stay Updated with Trends
The refurbished market is dynamic. Stay updated with current trends and consumer preferences. This can help you adjust your inventory and marketing strategies accordingly.
Actionable Tip. Subscribe to industry newsletters, follow relevant tech blogs, and join seller forums. Use this information to anticipate demand for certain types of refurbished products.
Sustainable Practices
Emphasize your commitment to sustainability. In a world increasingly conscious of environmental impact, highlighting the eco-friendly aspect of refurbished products can be a unique selling proposition.
Actionable Tip. Highlight the environmental benefits of refurbished products in your marketing materials.
The Bottom Line
The second-hand market is on the rise. But gaining consumers’ trust is by no means an easy task.
For sellers, Amazon Renewed opens up a new dimension of possibilities. It’s about tapping into a new customer base, and about being part of a sustainable business model. If nothing else, it’s also a new income source and a new channel to engage with customers.
Joining this program is an invitation to be part of a community that values quality, affordability, and environmental responsibility. So, take these insights, apply them to your business strategy, and watch as you unlock new levels of success in the marketplace.
Whether you’re a seasoned shopper, a curious newcomer, or an eCommerce business owner exploring the prospect of reselling on Amazon, it’s worth discovering how Amazon Renew is redefining the art of sustainable shopping.
Authors
Esteban Muñoz is a content writer with several years’ experience in digital marketing and eCommerce. He’s been able to achieve incredible growth for his associates by optimizing and managing their accounts, and creating in-depth content marketing strategies.
Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as e-commerce, digital marketing, and data analytics.
The post How to Increase Your Profits with Amazon Renewed appeared first on AMZ Advisers.
