Amazon is a name that you can’t go a day by without either hearing or reading somewhere, even if it’s an ad you’re seeing on the internet. If we look at the business model, it started off as an eCommerce website selling goods online but its expansion in the market has baffled many. From being just an online retailer, Amazon ventured into e-reading products(Kindle), web services, manufacturing electronics, and other goods, to a streaming platform (Amazon Prime) all in a matter of years. It opened its doors to sellers who wanted to use the platform as a middle party that could help them bring their products towards online buyers. Since then, the whole mechanism of selling through Amazon has evolved a lot. If you are an interested seller and have questions such as ‘what does renewed mean on Amazon’, this blog will help you understand that.
Amazon’s founder Jeff Bezos had bigger plans for the company since the beginning when the platform was only selling books online. Bezos claimed to be working towards evolving the online shopping experience through technological innovation for users and it was successful in many ways if we look at where the company stands now. The company’s shares are listed as some of the highest-priced stocks on NASDAQ. Looking at the enormity of its growth and how accessible it has become to be involved with the platform, it’s no wonder many people are looking to sell their products through it.
This particular article is supposed to answer all your questions regarding the term ‘renewed selling’ or what does ‘renewed’ mean on Amazon. It’s true the terminologies can get a little much, but once you start using the platform, it gets as easy as any routine. Amazon Renewed refers to the refurbished products that sellers can list on the platform. People use very many different terms, but they all refer to the same thing, selling pre-owned products under certified refurbished rules.
People who are passionate about minimalism and are generally conscious tend to lean towards such initiatives and alternatives where their spending will either be a long-term solution or what they’re buying does not harm the planet or its habitat. Apart from that, there is another category of buyers who are into thrifting and want to spend less money on their purchases.
There are guidelines for renewed item sellers on Amazon for the purpose of selling refurbished products, that help keep a check on the quality.
When you register on Amazon, you have a wide variety of options to choose from and get your business running. Registering for the Amazon Renewed program puts you in front of a very large customer base due to Amazon’s huge brand recognition that has given it a considerable edge over its competitors, much like Apple.
The Amazon Renewed program seems to be the brand’s strategy to compete with other reselling platforms namely eBay and Depop. Because initially the numbers weren’t that large, but over time the buyer market for used and refurbished items has consistently increased. Therefore, becoming an Amazon renewed seller can be highly beneficial for you.
There are certain rules and requirements Amazon has put under their program of selling refurbished products, let’s see what they include.
Getting Started with Amazon Renewed:
Firstly, the initial screening includes fishing out only qualified manufacturers and refurbishing companies. Companies that have a track record of doing such work and are credible enough to get Amazon’s name attached to it. The products that are allowed to be sold under this program are mostly machinery and electronic equipment that are refurbished for reuse. Here’s a list of some of the types of renewed products allowed to be sold in the program as an Amazon renewed seller:
- Home appliances
- Kitchen accessories
- Mobiles phones
- Office equipment including, printer and copier etc.
- Gaming equipment
- Laptops and Computers
After you qualify for the program, you have to have the tools to inspect and test your products to make sure the quality is as per the standards.
How to sell on Amazon renewed
As a frequent Amazon seller, you should not have trouble going through the qualifying process to become an Amazon renewed seller. It helps your company make sure your products are good enough for your future customers because satisfied customers lead to further business.
Inspection is the first step of the entire process in which Amazon requires a diagnostic report from your end, of an inspection done on your renewed product. Your product needs to be physically free of any imperfections, clean, and in case of any defects, you cannot list the renewed product until the defects are cleared.
Your renewed product needs to look new, which also needs to make part of the diagnostic report when it gets inspected and tested. This is Amazon’s way of making sure they are not allowing any sub-standard products to be sold through it’s websites and hinder its brand image by any Amazon renewed seller.
After getting inspected and tested, second on the qualifying process list is warranties. Amazon Renewed has a standard for all qualified sellers to offer a 90-day warranty to its customers. This time period includes service for any defaults that appear while using the device. What it does not include is any fault caused by the customer’s own fault that may happen during installation, use, or maintenance.
In case a manufacturer does not want to comply with this particular requirement, there are further requirements that you need to fulfil before you can list your renewed product via Amazon Renewed program. This includes a minimum of 8 pictures of your sample unit for Amazon to review for approval. The pictures need to cover the renewed product’s top, bottom, all sides, packaging from inside and outside.
In terms of discount, Amazon Renewed requires the sellers to offer a 5% discount difference to reflect the original price of the product.
All logically based, even though the product is refurbished to be used as new, it is still pre-owned, therefore, important to offer at a reduced price than the original product price.
- Business history:
To filter out any fishy contenders, the last step in the process to qualify for the Amazon Renewed program is to provide proof of your previous business transactions. This is to make sure the companies they end up working with are to be trusted to deliver or not.
You can still include refurbished items that cost low by choosing to provide the invoices with the amount in dollars instead of the number of units.
- Invoices for at least $50,000 renewed products that you have purchased, only within the last 3 months.
- A receipt for a minimum of 500 pre-owned/refurbished units, but they will not include any units that sell for $15 or under.
You can still include items that cost low by choosing to provide the invoices with the amount in dollars instead of the number of units.
Another important requirement for an already registered Amazon seller is to make sure their defect rate for the last three months is under 0.8%.
Other requirements vary depending upon the brand of the product you’re planning to sell. For example, Apple products require a higher receipt of the order ($2.5 million).
Step by Step Process to sell on Amazon Renewed
Finally, after you go through the qualifying process and come out victorious, it’s time to get started on the process of selling refurbished products.
1. Register yourself with Amazon Renewed:
Get started by heading over to Amazon’s seller central site and sign up.
If you are a new Amazon seller, read about their payment method on their website.
2. Research for opportunities that are in high demand:
There are two scenarios for a seller or potential Amazon seller, both of which can give results if you have done your research. In case you already have your inventory, that means you have done your due diligence with the product, what remains now is for you to make sure you know enough about your competitors and selling opportunities on the platform you will be selling refurbished products on, i.e. Amazon. In case you are starting fresh, your research will have to start from scratch as well, including everything to do with the product you’re thinking of selling refurbished products, the competition you will face, and how you can better reach your customers.
An ideal scenario is to look for or go towards renewed products that have high demand and low competition. This can include many products that form part of a niche market.
3. Build Inventory with best renewed products on Amazon:
In case you are a seller already packed with inventory, you don’t need this step. In case of a fresh starter, after you’re done researching, now is the time to source your renewed products. You have multiple options to go for:
- Firstly, you can go for direct manufacturers who sell defective or faulty pieces to other sellers. You just have to find your own refurbishing options.
- Another option is to look for companies liquidating operations. These companies refurbish the merchandise themselves, therefore you can find options that provide testing and diagnostic reports as well.
- Lastly, other wholesaling platforms such as Alibaba have gained popularity in pre-owned and refurbished items over the years. This is a good option because the quality standards are met so you do not have to worry most of the time.
4. Become a Seller on Amazon Renewed Program
This is a process that you don’t have to follow if you are already registered. After completing the qualification and inventory purchasing process, you’re ready to sell your products on Amazon Renewed.
Amazon Renewed is an ideal option to sell your product to international customers, no matter the type of your product. The brand name gives you enough leverage and credibility to reach customers. Customers trust Amazon for a reason, thus you don’t need to put in additional efforts. Nonetheless, Amazon renewed guarantee for both local and international clientele.