Amazon Renewed: What is it and is it Worth It?
Amazon Renewed: What is it and is it Worth It?
Amazon is always looking for new ways to sell products. They’re continually branching out into new sectors and expanding into different areas of eCommerce. And sure enough, they’ve done it again.
Amazon Renewed is the company’s selection of refurbished products, backed by their own guarantee. It gives consumers a way to purchase cheaper goods, and sellers a new avenue to make money on the platform.
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So, how does the program work and how do you start selling with it? Keep reading to learn everything you need to know about this option.
What Does Renewed Mean on Amazon?
Renewed and refurbished are quite similar. The only difference is how long they have been in use. In the first case, the product could be used for some time, and then restored to new condition. With the second, the product was basically not used at all.
When Amazon says “renewed” they mean refurbished.
So, what is a refurbished product?
The definition of a refurbished item is one that’s had certain components repaired or replaced. The difference between this and used is that a refurbished item is in “like new” condition.
All Amazon Renewed’s products are certified so customers know they’re buying quality merchandise.
This means if you’re going to sell through this program you either have to repair your products yourself, hire someone to do it for you, or partner with a manufacturer that provides this service.
Who Can Sell on Amazon Renewed?
Amazon has strict guidelines regulating who can sell products under this program. In order to be accepted your items must meet the company’s quality standards and you need to have sold a minimum number of refurbished products in the last three months.
So, if you’re just beginning your refurbishing business, or you’re brand new to selling altogether, you likely won’t be eligible for Amazon Renewed.
We recommend that you have significant experience with repairing and refurbishing items before applying for the program.
What Kinds of Products Can You Sell with Amazon Renewed?
Amazon Renewed only sells items that are capable of being refurbished. As such, they only offer electronic and mechanical products that can have their components swapped out or repaired.
Some of the products you’ll be able to sell include:
Video Game Consoles
As you can see, the types of products you’re able to sell are much more limited, so make sure you’re comfortable selling these items before committing to joining the program.
How to Apply
If you’re interested in joining the program follow the steps below to get approved.
1. Fill out the application form. Don’t worry if you don’t already have a selling account with Amazon. Complete the form and if you’re approved Amazon will help you set up your account.
2. After submitting your application you’ll need to meet Amazon’s criteria. This includes:
Submitting invoices for a minimum of $50,000 worth of refurbished items in the last 90 days.
Having an ODR of 0.8% or less in the last 90 days if you’re an existing seller.
Back all your refurbished products with the Amazon Renewed Guarantee and be responsible for any claims you receive.
If you want to request permission to sell factory refurbished items without a warranty you’ll need to send a minimum of eight photos of a sample product for review.
After you’ve submitted your application you should receive a decision within 10 business days.
How to Find Products to Sell on Amazon Renewed
Once you’re approved for the Amazon Renewed program you’ll need to decide what exactly you’re going to sell. Remember, some products sell better than others so if you’re going to invest time and money into building a business you want to make sure there’s a market for it.
Luckily there are a few tools that make this process easy and ensure you always select winning items to sell on Amazon.
Generate Product Ideas with the AMZScout Product Database and Keyword Search
The Product Database and Keyword Search tools can help you identify products that meet your criteria.
To start, use the Product Database to search all the products currently listed on Amazon. Take advantage of the 44 filters to narrow your search. You can search for products based on:
For example, when looking for products to sell on Amazon Renewed you’ll want to limit your search to only categories that are allowed by the program.
Once you have your results use the AMZScout Amazon Keyword Search tool to generate even more ideas. Simply enter a product into the search field to get dozens of related keywords and find other similar items that you might be interested in selling.
Validate Your Ideas
After you find a few products you’re interested in it’s time to take a closer look at them and see how profitable they really are.
Install the AMZScout Pro Extension, then go to Amazon. Search for the product you’re interested in and open the extension to see estimated monthly sales, reviews, average price, sales history, and more.
Use the profit calculator to estimate your profit margins and determine if it’s worth selling a particular product. Just remember to factor in the cost of refurbishing your products when entering your expenses into the calculator.
The Pro Extension also includes product and niche scores that are based on estimated profit margins, the level of demand, and how many other sellers are already offering it. The higher the score the more profitable it will be to sell.
Tips and Tricks
If you’re planning on selling through Amazon Renewed here are a few tips to help you find success and grow a profitable business:
#1 Price Your Products Accordingly
Even though your products are refurbished they’re not brand new so you’ll need to price them lower. We recommend charging 20% less than new items.
That being said because your products are “like new” you should be able to charge more than products that are just “used.” Just make sure to explain how your items have been refurbished to justify why someone should pay more.
#2 Use Amazon Ads
Amazon Ads are a great way to drive traffic to your listings and increase sales. This is especially true for new products that aren’t ranked in Amazon’s organic search results yet.
Use the AMZScout Keyword Search tool to find the right keywords to target with your ads for the best results.
#3 Use Fulfilled by Amazon
The Fulfilled by Amazon (FBA) program lets you ship all your inventory to Amazon to be stored in their warehouses. When one of your products sells they’ll pick, pack, and ship it for you.
This is a great option for individual sellers who don’t have the space to store products or the time and resources to fulfill orders.
#4 Stick to the Most Popular Products
For the best results, stick to refurbished products that have proven to sell well. This includes laptops, phones, tablets, and gaming accessories.
Is Selling on Amazon Renewed Worth It?
After everything we’ve covered so far the biggest question you’re probably wondering is, is it worth it to sell on Amazon Renewed?
Here are the pros and cons:
Less Competition: Only certain sellers are allowed to sell on Amazon Renewed. This is a major barrier to entry and means you’ll be up against less competition.
Sell Items That Are Usually too Competitive: Products like laptops and smartphones usually have way too many other sellers to compete with. But like we just mentioned, there aren’t that many people able to sell refurbished versions of these products. So, if you really want to sell these items this might be the way to go.
Attract Customers with Lower Prices: Products on Amazon Renewed are priced well below new products. People are always looking for a great deal and if you can prove your products are just as good as the new ones you’ll be able to grow a loyal customer base.
Complicated Application Process: Getting approved for the Amazon Renewed program takes a long time, meaning you might have to wait a while before you can start selling.
It’s More Work: With new products, you just have to buy them and resell them. But before you sell products on Amazon Renewed you need to refurbish them. That means either putting in the time and effort to do it yourself or contracting someone to do it for you.
It’s Mostly Electronics: Most of the products found on Amazon Renewed are electronics. These items are more complicated and prone to failure, which leads to higher return rates and more complaints to deal with. So, if you go down this route make sure you’re very familiar with Amazon’s return policy.
There’s Less Demand for Refurbished Products: Refurbished products are usually just as good and reliable as new ones. However, the fact remains that most people prefer to buy new, so just know that you’ll likely never sell as much as people selling new products.
If you already run a successful refurbishing business then Amazon Renewed is a great way to grow your revenue. You’ll be able to sell to all of Amazon’s Prime users and expand your business much faster.
For these reasons we highly recommend it for anyone already selling these types of products and who has experience doing this type of work.
However, if you don’t know anything about refurbishing items you’ll likely be better off sticking to new products. The process is much simpler and will require a lot less hassle.
If you do plan to sell on Amazon Renewed make sure to check out AMZScout’s wide range of tools to help you find the best products to offer. Free trials are available to allow you to test them out and see if they’re right for your business.