If you‘re an Amazon seller, offering refurbished products on Amazon Renewed can be a smart way to increase profits, reduce waste, and satisfy customers seeking discounted prices. However, the program has specific requirements and best practices to follow for success.
In this ultimate guide, I‘ll share my insider knowledge as an experienced Amazon seller on how to effectively sell refurbished products through Amazon Renewed. I‘ve been selling new and used products on Amazon for over 5 years, so I‘ve learned many tips and strategies to help other sellers navigate the Renewed program.
What Exactly is Amazon Renewed?
For those unfamiliar, Amazon Renewed is an official program that allows sellers to list refurbished products on Amazon. To qualify as "Renewed", products must be professionally inspected, tested, cleaned, repaired, and repackaged to look and function like-new.
Amazon puts all Renewed inventory through rigorous vetting to meet their quality standards before items can be listed under the program. Only items that pass Amazon‘s diagnostic testing and physical inspection can earn the Amazon Renewed badge.
This review process gives customers confidence that any product labeled as Renewed on Amazon has been thoroughly evaluated to work and look like new again. Amazon Renewed products also come with a 90-day Amazon Renewed Guarantee. If issues arise, customers can get a quick refund or replacement. There is also a 1-year limited warranty.
In essence, the Amazon Renewed program allows sellers to resell refurbished goods while leveraging Amazon‘s reputation to provide buyers peace of mind about purchasing pre-owned items. As an experienced seller, I‘ve found it to be a great opportunity.
Why Should Sellers Consider Amazon Renewed?
Here are the main reasons why selling refurbished products through Amazon Renewed can benefit your business:
Access Amazon‘s Vast Customer Base
One major advantage is that listing on Amazon Renewed taps into Amazon‘s massive customer base. Amazon attracts over 197 million unique monthly visitors just in the US. Many buyers are already conditioned to purchase renewd items on Amazon. You gain instant exposure and visibility to millions of potential customers.
Based on my experience, Amazon shoppers demonstrate significant demand for refurbished electronics, appliances, watches, and other renewed products. You can capitalize on this built-in audience.
Increased Credibility for Refurbished Items
The Amazon Renewed badge lends an air of credibility and trust to your refurbished product listings. Customers feel more confident purchasing a product labeled as Renewed on Amazon compared to a generic refurbished item.
Amazon has spent years establishing itself as a trusted brand. By selling through their official Renewed program, you benefit from that reputation. According to one survey, 82% of customers perceive the Amazon brand as reliable and trustworthy.
Allow Customers to "Try Before They Buy"
Another advantage I‘ve noticed is that the Amazon Renewed Guarantee makes returns and refunds straightforward for unsatisfied shoppers. Within 90 days of receiving a product, customers can return it for any reason. This helps overcome buyer hesitation and reluctance about purchasing used goods.
Knowing they can easily return an item gives customers peace of mind to "try before they buy" when considering a Renewed product. This drives increased conversion rates.
Receive Prime-Eligible Product Placements
By meeting Amazon‘s standards, Renewed products also gain eligibility for Prime listings and preferred product placement. Millions of Prime members actively look for Prime-eligible items.
As a seller, I‘ve seen first-hand how important Prime eligibility is for sales velocity and conversions. Prime listings drive significantly more sales.
Discount Pricing Attracts Bargain Hunters
Additionally, selling through Amazon Renewed allows you to offer discounted pricing compared to brand-new equivalents. I‘ve learned that customers expect and demand lower prices for refurbished and used products.
The bargain hunting segment on Amazon is huge. Offering deals is a major sales driver. Renewed provides a natural opportunity to promote markdowns and discounts to attract deal-seeking shoppers.
Reduced Waste and Environmental Impact
Finally, reselling refurbished products reduces waste and environmental impact compared to manufacturing new items. Reusing goods is an inherently "green" process that cuts down on total carbon emissions.
For sellers like myself who prioritize corporate social responsibility (CSR), Amazon Renewed aligns well with those values around sustainability. It facilitates recycling and reuse.
Considering these benefits, sellers should strongly evaluate if the Amazon Renewed program is a good fit for their inventory and business model. It provides unique advantages difficult to replicate elsewhere.
What Products Are Eligible for Amazon Renewed?
Amazon has specific categories that are authorized for refurbished product listings under the Renewed program. Based on my selling experience, the main eligible product categories include:
- Electronics: smartphones, tablets, laptops, computers, monitors, printers, cameras, drones
- Home entertainment: TVs, Blu-ray players, speakers, headphones, routers
- Smart home tech: lighting, security systems, thermostats, robot vacuums
- Kitchen appliances: refrigerators, microwaves, coffeemakers, ranges, dishwashers
- Home improvement: power tools, generators, lawn mowers, chainsaws
- Outdoor recreation: binoculars, telescopes, drones, metal detectors
- Watches: traditional and smartwatches
- Musical instruments: guitars, pianos, keyboards, drums, brass instruments
- Video game consoles: PlayStation, Xbox, Nintendo Switch
- Automotive parts: tires, batteries, electronics, accessories
However, even if your products don‘t fit squarely into one of the above categories, they may still qualify on a case-by-case basis. The best approach is to inquire with Amazon about your specific products if unsure of eligibility.
Overall, any refurbished items in working pre-owned condition have potential for Amazon Renewed given the growing diversity of products. It‘s worth exploring.
What Are the Requirements to Join Amazon Renewed?
Sellers must meet the following criteria to start listing refurbished inventory through the Amazon Renewed program:
Have an Established Amazon Seller Account
First, only existing Amazon sellers can gain approval to sell Renewed products. You must have an active seller account already in good standing to qualify. Both your account history and performance metrics will be reviewed before admission.
I‘d recommend having at least 6 months of selling history and 50+ product listings on Amazon before applying for the program.
Provide Refurbished Inventory Invoices
To join Renewed, you have to supply invoices showing your purchases of refurbished product inventory. The required total invoice amounts vary based on the product category:
- Electronics: $50,000 in 90 days
- Home goods: $250,000 in 90 days
- Watches: $2.5 million in 12 months for luxury brands
So proper sourcing documentation is a prerequisite. Plan ahead with your suppliers to obtain compliant invoices.
Pass Inspection and Testing Requirements
Crucially, all Renewed products must pass functional testing to prove they operate properly. Amazon also requires a thorough cosmetic inspection of each item.
As the seller, you‘re responsible for correctly inspecting, validating, and preparing items to meet standards. I recommend setting up an in-house quality assurance process to catch any defects.
Follow Packaging and Labeling Rules
There are specifications for how Renewed products must be packaged before shipment to customers. Amazon has provided specialized packaging and prepaid return labels sellers must use.
I advise reading Amazon‘s requirements closely and obtaining these materials directly from Amazon before listing. Proper packaging is required.
Offer the 90-Day Renewed Guarantee
As mentioned, you must back all Renewed products with Amazon‘s 90-day Renewed Guarantee. This means accepting returns and providing refunds or replacements.
Factor this into your costs. I suggest pricing items at least 20% under new product pricing to accommodate potential returns.
Provide a 1-Year Limited Warranty
In addition to Amazon‘s guarantee, either you as the seller or the manufacturer must supply a 1-year limited warranty on renewed items.
I‘ve found it‘s best to get the original manufacturer to provide the warranty for electronics and appliances whenever possible. This adds credibility.
Price at Least 5% Below New Versions
Amazon mandates that Renewed products must have pricing at least 5% lower than the new equivalent versions. So competitive yet discounted pricing is crucial.
I regularly monitor the market to price Renewed items attractively against comparable new and used listings. Staying 5-10% under market is ideal.
While detailed, these renewing requirements help elevate the standards shoppers see. They are worth following to build a reputable business long-term selling refurbished goods on Amazon.
Step-by-Step Guide to Listing Refurbished Products
Once approved for Amazon Renewed as a seller, here is the basic step-by-step process I follow to list refurbished products:
1. Create New Amazon Listings
First, create unique Amazon listings for each of the refurbished products you plan to sell. Make sure to include relevant title information, product descriptions, attributes, images, pricing, shipping settings, and other listing details.
I like to add "Renewed" in the actual listing title, so it‘s clear throughout Amazon it‘s a refurbished item.
2. Upload High-Quality Product Photos
One of the most important parts of the listing is having great visuals. Include multiple high-quality photos that showcase the actual renewed product from various angles along with the packaging.
The photos need to demonstrate the item has been cleaned, inspected, and restored to like-new condition. I use a lightbox setup to take crisp, bright pictures.
3. Select the "Renewed" Condition
When specifying the item condition on Amazon, you must choose "Renewed" rather than new, used, or other conditions. This properly tags it as a Renewed product for customers.
4. Provide a Detailed Product Description
In the listing description, cover specifics on the inspection, testing, cleaning, repair, and renewal process the product went through. Mention the warranty.
Highlight any minor scratches or imperfections on the item, even if barely noticeable. Total transparency builds trust.
5. Set Attractive Pricing
One advantage of Amazon Renewed is the ability to offer significant discounts compared to new equivalents. Make sure pricing is at least 5% lower than new versions.
I monitor competitors and aim to price Renewed products around 10-20% cheaper than new items while still being profitable. Attractive pricing drives conversions.
6. Ship Using Renewed Packaging
Use the approved Amazon Renewed packaging and prepaid return labels for all shipments. This reinforces the Amazon Renewed branding.
I ship orders out same or next day to provide a smooth customer experience. Fast fulfillment exceeds expectations.
Following this checklist when first listing refurbished products on Amazon will set your account up for success.
Pro Tips for Amazon Renewed Results
Beyond the basics, here are some pro tips I‘ve learned that can help maximize sales of renewed products on Amazon:
Leverage high-demand brands – Refurbished products from recognizable major brands like Apple, Sony, Cuisinart, DeWalt perform best. Capitalize on brand affinity.
Specialize in a niche – Become an expert in refurbishing electronics, small appliances, or watches. Specialization promotes expertise.
Highlight inspection rigor – Emphasize the strenuous inspection process and quality control. This alleviates concerns.
Invest in photography – Pay for a professional product photographer if needed. Great visuals boost conversions.
Write compelling listings – Use wording like "professionally refurbished" and "works and looks new" to persuade.
Advertise new listings – Use Amazon PPC ads to gain visibility as you launch Renewed products.
Optimize for Prime – Ship quickly with tracking to increase Prime eligibility. Prime drives more impressions.
Provide exceptional support – Be highly responsive to customer issues and offer friendly service. This reduces product returns.
Automate workflows – Use software to automate product listings, inventory, repricing, and order processing to scale efficiently.
Leveraging best practices like these can help you get the most out of selling renewed products on Amazon.
How to Scale Your Amazon Renewed Business
Once you gain traction on Amazon Renewed, here are proven ways to scale up your refurbished product business:
Expand into more categories – Start selling renewed consumer electronics, then add appliances, watches, instruments, and toys. Diversity lowers risk.
Increase inventory – Test demand, then stock up on faster selling renewed items. Buy deeper inventory of winning products.
Develop custom bundles – Create unique product bundles like headphones + charging cable to boost average order value.
Build a recognizable brand – Create custom branding, packaging, inserts to build awareness of your business.
Sell across other channels – Expand beyond just Amazon onto eBay, Walmart, Sears and other leading marketplaces.
Set up in-house renewal – Bring parts of the refurbishing operation in-house rather than outsourcing for better quality control and profits.
Automate pricing – Use dynamic repricing software to automatically optimize prices based on competitors.
Hire dedicated experts – Bring on staff with specialized skills in testing electronics or repairing appliances.
Consider warehouse expansion – As you grow, add more warehousing space for inventory storage and faster processing.
With the right strategies, an Amazon Renewed business can scale successfully. Amazon provides the platform for serious growth.
Key Takeaways on Selling Refurbished through Amazon Renewed
Based on my years of experience as a top seller, here are the big takeaways:
- The Amazon Renewed program opens the door to sell refurbished goods to Amazon‘s vast customer base that is comfortable purchasing renewed items.
- You benefit by having Amazon‘s trusted reputation attached to your refurbished products, increasing credibility.
- Following Amazon‘s standards for rigorous inspection, testing, packaging and customer support is essential.
- Renewed allows you to offer attractively priced deals on refurbished inventory, appealing to bargain seekers.
- With the right focus on product sourcing, listing optimization, and customer satisfaction, reselling renewed products on Amazon can become a thriving sales channel.
The Amazon Renewed program provides an amazing opportunity to turn returns and excess inventory into profits while reducing waste. I highly recommend it to any sellers with refurbished goods that meet Amazon‘s criteria.
To summarize, selling professionally refurbished products on Amazon Renewed allows growing businesses to tap into surging demand in an environment conditioned for this emerging retail category. Done right, you can build a satisfying and lucrative venture.
I hope this guide serves as a helpful blueprint to get started selling renewed products successfully. Let me know if you have any other questions!