Selling used and refurbished products on Amazon just got a whole lot easier. Before, selling used products on Amazon (other than books) was a huge headache. Most customers only want to purchase new products and hardly bother looking at used ones. Even Amazon’s Buy Box algorithm gives priority to sellers selling used products. In 2021, Amazon is trying to revamp its resell market with the launch of Amazon Renewed. Amazon recently launched its new Renewed marketplace, where sellers can register to sell high-quality products that are still close to new conditions. The new marketplace provides sellers another avenue to increase their sales and grow their Amazon businesses, with some added benefits.
This blog will break down how Amazon Renewed operates and how you can start making sales on Amazon by selling like-new and refurbished products with Amazon Renewed.
What Does Amazon Renewed Mean?
In general, used and refurbished products are difficult to sell. Especially on Amazon where customers are accustomed to buying brand new products, selling anything different can be tricky. One of the issues with used products is that no one wants to buy a potentially broken or defective product. Even products that are “newly refurbished,” come with a ton of preconceived notions of potential product issues. Amazon Renewed is hoping to change the way Amazon customers perceive and buy used products.
When Amazon launched its Renewed marketplace, they played a heavy emphasis on their testing process of used products. Any used or refurbished product sold on Amazon Renewed must undergo serious trials and evaluations to be approved to sell. Every pre-owned product on Renewed is inspected and tested by one of Amazon’s qualified suppliers and third experts. Each product comes with Amazon Renewed Guaranteed, confirming that every product is completely working “like-new” along with a 90-day warranty. After undergoing and passing a refurbishment process, products are cleaned and repackaged and then are available for purchase on Amazon Renewed.
Why Should I Sell Like-New Products?
Used and refurbished products can be extremely beneficial to sellers by providing new avenues of growth. Here are some of the key benefits from selling like-new or refurbished products on Amazon Renewed:
Low Competition and High Potential
The amount of sellers on Amazon is increasing every day, and as the competition rises, the sales of each Amazon business can take a hit. With the Renewed program, used products have to go through a strict testing process to ensure they are working properly. The marketplace has more strict quality criteria and testing in place, which allows Amazon to prevent any bad actors from joining. This is great news for professional or eager sellers who are currently struggling with the competition on Amazon. Amazon sellers can join a more exclusive marketplace that has a lot less competition and more room for growth.
Access to Amazon
Along with growth opportunities, Renewed sellers will still have access to all of the benefits of selling on Amazon. This includes access to Amazon seller tools, Amazon FBA and Prime shipping, and the millions of Amazon customers around the world. While you won’t be selling new products, there will be tons of customers searching for your used products.
Certified and Trusted Products
Amazon Renewed testing process can validate your used products to increase brand trust and sales. Selling refurbished products on any other e-commerce platform can be tough. Since most other marketplaces don’t offer any refurbish guarantee for third-party sellers, there is a lot less trust between sellers and their potential customers. As we mentioned above, no customer wants to purchase a potentially broken or defective product. But with Amazon’s Renewed Guarantee, customers will be more confident in purchasing used products on Amazon.
Growing Your Catalog
Expanding your Amazon inventory can be tough when there are too many sellers selling the same products as you. But if you sell used products, it provides another opportunity for product sourcing and expanding your inventory. With new products, sourcing enough inventory can also be really expensive. Most used and refurbished products can be purchased at a discounted rate through online sellers, thrift stores, garage sales, and more. By selling used products on Amazon Renewed, you can potentially source more products with higher profit margins at a cheaper cost!
Do Customers Want Used Products?
Looking back, you would think customers are shying away from used products, but in reality, it’s the exact opposite.
In a study done by Global Data Retail, it was reported that resale marketing is growing 11x faster than traditional retail markets. In 2030, it is estimated that the resale market will be worth roughly $84 billion.
This change isn’t surprising when looking at the primary reasons behind reselling used products. The two biggest benefits of used and refurbished products are the potential economic savings and the impact on the environment.
It’s no secret that used and refurbished products are always cheaper than their new counterparts. With the current buyer market, more and more shoppers are looking for affordable alternatives rather than paying full price on goods. Used and refurbished products that are “like-new” provide that perfect middle ground where shoppers can confidently purchase high-quality goods without breaking their wallets.
Along with the monetary savings, lots of customers are thinking of the economic impact of buying new products. One of the biggest eco-issues is the production of electronic waste (e-waste). We even discussed this topic in our previous article on Amazon’s Trade-In program where e-waste contributes 20 to 50 million metric tons of pollutants is disposed of worldwide every year. To combat e-waste, many shoppers are becoming more environmentally conscious, purposely choosing to purchase used products instead of new ones.
The market for used and refurbished is there, and it is growing fast. As more and more customers are looking for cheaper, more sustainable, and eco-friendly resale products, Amazon Renewed provides a huge window of opportunity for Amazon sellers.
How Do I Sell on Amazon Renewed?
Here are the steps to apply and register for Amazon Renewed:
Step 1: Register an Account on Amazon
This process is quite simple. Head over to sell.amazon.com/programs/renewed and click on “Sign Up.” The registration process is quite simple and should only take a couple of minutes.
For our existing Amazon sellers, you’ll need to submit a form providing details about your current Amazon business. Click the link below for the application details and get started:
Step 2: Meeting the Criteria
As we mentioned before, this program is a lot more exclusive to sell on, which is why there is a lot less competition. To qualify and sell on Amazon Renewed, every seller must fulfill the following criteria:
– Supply invoices showing a minimum a total value of $50,000 in qualifying refurbished purchases in the previous 90 days from the date of the application or 180 days for sellers selling Home, Tool, Lawn & Garden, and Kitchen products.
– Less than a 0.8% Order Defect Rate in the past 90 days
– Minimum of 8 professional images for your products and their packaging (for factory refurbished products)
– Agreement to Amazon Renewed Guarantee and their policies
– For Apple products, sellers will need to provide invoices from the past 90 days that total $2.5 million in Apple refurbished products
Step 3: Approvals and Listings
For sellers who meet these requirements, your application will be approved in a couple of days and you can begin to list and sell your refurbished products through Amazon Renewed. If a customer decides to purchase your product, you can either fulfill the order yourself (FBM) or use Amazon’s Fulfillment Centers (FBA).
Which Products Can I Sell?
Amazon Renewed currently accepts select products and product categories. The most commonly found products on Amazon Renewed include:
- Kitchen Appliances
- Video Game consoles
- and more
To find a complete list of permitted products you can sell on Amazon Renewed, you can refer to Amazon’s program details and guidelines here.
In addition to the product categories, all products sold on Amazon Renewed must pass their quality check and evaluations. This means your products have to meet the “Amazon Renewed Guarantee” which have follows Amazon’s Global Quality Policy. Some of these requirements:
- No signs of cosmetic damage (scratches, dents, etc.) should be visible when the product is held 12 inches away.
- Any potential refurbishing operation should only use the Original Equipment Manufacturer (OEM) part.
- All markings on the product must be intact (e.g. product logo). No additional markings (e.g. supplier logo, engravings, etc.) are allowed.
- When present, batteries must have a capacity that exceeds 80% of the new equivalent
- Products must include all accessories that come with a new equivalent.
This is just a short list, but Amazon has a ton more requirements to abide by. You can find the entire list of restrictions in more detail here.
Growing Your Business with Amazon Renewed
We understand that the seller and product criteria may be a lot for some sellers. But, it is well worth it. Amazon Renewed is at the forefront of the rise of resale, used, and refurbished products. While Amazon’s marketplace becomes busier and more competitive, Amazon Renewed may be the lifeboat that can protect and sustain your business among the competition.
If you don’t qualify for Amazon Renewed now, don’t panic! There’s still a lot of time to build your sales and qualify for Amazon Renewed in the coming months. But to get there, you need to start selling high-quality products now. Go to Sellgo.com and look into our seller tools like our Search Management tool to bulk analyze supplier catalogs. Then, use the Profit Finder to hunt down the best and most profitable products to source and sell. Once you build your inventory and sales history, you’ll be eligible for Amazon Renewed in no time!
Until next time, take care and good luck on your Amazon seller journey!