The process of buying pre-owned products online, known as "re-commerce," is blowing up globally, with the U.S. Chamber of Commerce estimating a market value of $82 billion by 2026.
By selling on Amazon, sellers can take advantage of this booming resale market, where millions of customers can find a variety of products in categories such as "open-box," "pre-owned," and "refurbished."
In this article, we'll explain what Amazon Renewed is, how sellers can join, and the advantages of selling in this niche marketplace. We'll also fill you in on what you can and can't sell, how to price your products, and tips for maximizing your profits.
What Is Amazon Renewed?
Amazon Renewed is the platform's marketplace for open-box, pre-owned, and refurbished items. It includes products that have been inspected and tested by certified technicians, and are backed by the Amazon Renewed Guarantee, which means buyers are protected in case of any product defects or malfunctions.
Just to be clear, you don't need to join this program to sell used items. The platform already enables any seller offering pre-owned items to list them as "used," as long as they meet Amazon's general guidelines.
The difference is that Amazon Renewed has more stringent standards for the items it sells. These are inspected and certified to work like new, so shoppers place more confidence in their purchases.
What Can and Can’t I Sell on Amazon Renewed?
Most products eligible for Amazon Renewed are electronics, including phones, laptops, tablets, and smart home devices. However, you can also find home appliances, tools, and a few other items, such as:
For what items can't be sold on Amazon Renewed, sellers should view the platform's list of restricted products while sticking to the above list of acceptable Amazon refurbished items (which is also available to view in Seller Central).
Amazon Renewed Product Categories (Open-Box, Pre-Owned, and Refurbished)
Amazon Renewed categorizes its "used" products into three quality levels: open-box, pre-owned, and refurbished.
Here's what each one means:
- Open-Box: Open-box products are items that have been taken out of their original packaging but haven’t been used, so they’re technically new. Common open-box items include those that were customer returns, if the product was purchased in error, or if it simply didn’t meet the customer’s expectations.
- Pre-Owned: Pre-owned products are items that have been previously owned and used, but remain in good working condition. They’re also usually in better shape than refurbished items.
- Refurbished: Refurbished products are items that were once functional but needed to be repaired at some point for one reason or another. After the repairs have been made, they’re tested to ensure they meet Amazon’s quality standards.
Requirements for Amazon Renewed
To join Amazon's resale marketplace, sellers must meet the following criteria:
- Register or currently own an Amazon Seller’s account with an Order-Defect-Rate (ODR) of 0.8% or less in the trailing 60 days.
- Supply invoices for all purchase orders totaling $50,000 (or €20,000/£20,000 in EU/UK programs) from qualifying refurbished purchases within the last 90 days from the application date. Note: Some brands may require invoices showing more or less than $50,000. Apple products, for example, require invoices showing a minimum of $2.5 million in the trailing 90 days, specifically for refurbished Apple products.
- Provide proof of experience selling refurbished items, including sales volume, type of items sold, and other data.
- Products must be inspected, cleaned, repaired (if the item is to be refurbished), and tested by a manufacturer or a third-party refurbisher to appear and work like new.
- Submit a minimum of 10 images of a sample unit for product and packaging review as follows: 1) The box in which the product will ship; 2) The product’s box (either white or brown), which will go inside the shipping box; 3) A picture of the items inside the product box (with packaging); 4 & 5) Product pictures from top to bottom; 6–10) Product pictures from all four sides. Note: Items with a screen must include images of the screen turned on.
- Meet and adhere to the Amazon Renewed Quality policy (or click here to view the program’s terms in Germany).
- Additional documentation related to the product inspection process may be required for specific brands.
Sellers who meet the above-mentioned criteria can start the application process here. Alternatively, they can reach out to application@amazon.com with the above documentation attached, along with their full name and phone number with country code. It can take up to 10 business days for a response and approval.
How To Price Your Products
An important rule of thumb is to list your item with a minimum discount of 5% below the market price for the same item that's being sold as "new" on Amazon.
For example, your open-box, pre-owned, or refurbished item must be priced at $95 or lower if the new product is being initially sold for $100. Setting an appropriate price will help your product stand out from the competition and attract more buyers.
More importantly, following this rule could prevent you from being removed from the program and losing your selling privileges altogether.
Advantages of Amazon Renewed
Amazon's resale program has steep qualifications to join, but the advantages it offers to approved sellers far outweigh the requirements.
Some of the primary advantages include:
High-quality product assurance
An endorsement by Amazon Renewed carries a lot of weight with customers. It tells them that the product they're buying has been closely examined and certified to meet the company's rigorous standards.
As a result, Amazon shoppers place more confidence in their refurbished product purchases, knowing they're in safe hands. In some cases, they'll opt to buy these products instead of a brand-new version because of the lower price tag!
Access to millions of customers
Amazon is the largest e-commerce store in the world, with more than 310 million active customers. Through Amazon Renewed, you can tap into that massive customer base and potentially increase your sales.
Easy order fulfillment
The company's Fulfillment by Amazon (FBA) program makes it easy for you to send your products to an Amazon warehouse, then let Amazon take care of the rest. The company handles order fulfillment, customer service, shipping, and returns, taking a huge load off your shoulders.
Grow your business
Amazon Renewed provides an opportunity for sellers to grow their businesses and build a stronger presence on the platform. It's a unique way to piggyback on the powerful Amazon brand and ride the wave of re-commerce that's been growing in popularity over recent years.
Tips for Selling on Amazon Renewed
It takes slick salesmanship and smart marketing to succeed in any business, and Amazon Renewed is no exception.
Here are some tips to help you maximize your potential on the platform's resale marketplace:
- Choose the right inventory — Maximizing success as an Amazon Renewed seller starts with selecting the right inventory. Rather than taking on Amazon or private labelers, look for items that are in high demand, and aren’t carried by many other sellers.
- Be patient — Making a name for yourself on Amazon’s refurbished marketplace takes time. Don’t expect a quick return on your efforts. Instead, focus on building relationships and gaining customer trust over the long term.
- Use Amazon’s Deals and offers — Take advantage of Amazon’s best-deals feature to promote your products. These often appear on the Today's Deals section of the site and can lead to a sudden spike in sales.
- Use Amazon Ads — One of the most effective ways to increase visibility and sales volume is through Amazon Ads. This gives you the ability to showcase your products when customers search for specific items or browse certain categories. For the best results, consider using a PPC automation tool like BidX that can help you manage your campaigns more efficiently.
The Bottom Line
Being able to sell Amazon open box, Amazon pre-owned, and Amazon refurbished products is a great way to supplement your existing Amazon store.
But it's not as easy as simply joining and hoping for the best.
You must be willing to meet Amazon's re-commerce standards, choose the right inventory, and engage in smart marketing practices like PPC Ads to drive sales.
If you can do that, Amazon Renewed could be the key to unlocking a whole new world of success for your business.
Happy selling!
