What Does "Renewed" Mean on Amazon? An In-Depth Guide for Small Businesses

As a small business selling on Amazon, you‘ve likely come across renewed product listings. But what exactly does "renewed" mean? In this comprehensive guide, I‘ll break down everything a small ecommerce seller needs to know about Amazon‘s Renewed program.

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Overview of the Amazon Renewed Program

Amazon Renewed is an Amazon program launched in 2014 that professionally inspects, tests, and cleans used and returned products before reselling them on the site. Products that pass Amazon‘s stringent certification process receive the official "Renewed" designation and are backed by the Amazon Renewed Guarantee.

The renewed program has grown rapidly, with year-over-year unit sales up over 30% in 2020 according to Marketplace Pulse. As a small business, this presents a major opportunity to both buy and sell renewed inventory.

Amazon uses "Renewed" instead of terms like refurbished or used to denote a higher tier of quality control. Renewed products should meet standards closer to new condition than typical refurbished or used goods.

Sourcing Renewed Inventory for Your Amazon Business

As a small Amazon seller, one of the best ways to find renewed inventory is directly through Amazon Warehouse deals. These are excess and returned products directly from Amazon that have been inspected and discounted.

I‘ve found Amazon Warehouse to be a goldmine for finding replenishable renewed products in like-new condition at 30-40% discounts. This allows me to price items very competitively while maintaining healthy margins.

Third party sites like Decluttr, ekipni, and tech trade-in sites also offer a steady stream of pre-owned electronics and appliances to fuel my renewed product listings. Facebook Marketplace and Craigslist can provide local sourcing opportunities as well.

Pros and Cons of Selling Renewed Products

Based on my experience, here are some key pros and cons to keep in mind:

Pros

Increased profit margins by acquiring inventory at a discount
Ability to undercut competitors on pricing for like-new products
Additional revenue stream from reselling pre-owned products
Help increase lifespan of products and reduce e-waste

Cons

More time spent inspecting and testing renewed inventory
Higher return rates compared to selling brand new sealed products
Potentially more customer issues if expecting perfect condition

Renewed Product Quality Standards

For a product to qualify as Amazon Renewed, it must pass the following key inspections:

Functionality testing – Ensure full working order
Cosmetic inspection – Limit defects to minor scratches/scuffs
Data wiping – Securely erase any personal data
Cleaning/disinfecting – Remove dirt, grime, signs of use
Reboxing – New packaging and all accessories/parts

Amazon claims less than 10% defects on average for renewed electronics based on internal audits. However, this can vary based on the product category and seller.

I find testing 100% of inventory upfront helps reduce returns and negative reviews. For phones, a 30-40 point inspection checklist is ideal.

How to List Renewed Products on Amazon

To maximize sales, I make sure to optimize my Amazon renewed listings with the right details:

Title – Include "Renewed" at the start along with key details like storage capacity, color, and model number
Condition notes – Disclose any minor cosmetic flaws upfront in the listing description
Images – Show the actual renewed item with clear, high-quality photos
Item specifics – Fill out all relevant fields like model number, storage capacity, etc.
Price – Price competitively based on product quality tier and market data

Providing full transparency helps set the right buyer expectations and boost conversion rates.

Are Renewed Products Right for Your Business?

Selling renewed products certainly has its complexities, but also major upside potential. As a small seller, I‘ve found it to be a profitable endeavor overall that has expanded my business.

Just be sure to thoroughly test inventory, accurately represent condition in listings, and wow customers with quality service. With the right diligence, offering renewed products can unlock significant new revenue and margin opportunities.