Amazon is good at developing potentially winning opportunities for sellers. The Amazon Renewed program is one of them. So let’s find out what it is and how your store can benefit from selling your products in its framework.
Amazon Renewed Essence
Amazon Renewed is another opportunity for Amazon sellers. What does renewed mean on Amazon? As the name suggests, this is a way to sell the items that were either opened, used, and returned without any damage or used as a display item.
Here is a simple example. If you ever intended to buy Apple products elsewhere beyond Apple’s official stores, you most likely noticed that the price for the same model can be significantly different. The matter is that the device that comes at a lower price is marked as “Refurbished.”
This means someone bought it, then discovered a flaw or manufacturer defect, and returned it to Apple to fix it. After the issue is fixed, the seller offers to buy the item once again but specifies that it previously had a defect that is already fixed.
As for the program eligibility requirements, the Amazon renewed program is available to the sellers of devices and appliances since these are the categories of products that often come with fixable flaws. Also, to apply for the program, you have to supply invoices for at least $50,000 worth of qualifying refurbished purchases in the 90 days before applying.
After your application is approved, you get the right to sell renewed and refurbished products at a significantly discounted price.
Pros and Cons of the Program
As you can see, Amazon Renewed is a pretty exclusive program that comes with the requirements novice sellers may find challenging to meet. Still, it has its advantages and drawbacks, so consider them before applying for this opportunity.
- Offer a better price. When offering renewed and refurbished products, you can offer the customers the best price possible. In some cases, the utterly new model costs twice as much as “a little-used one.”
- Don’t lose your profit. Before selling a refurbished product, you have to make a return to the previous buyer. Selling the refurbished item one more time means you still can make a profit or at least decrease your losses.
- Attract new customers. Those customers who aren’t ready to buy an item at full price are often eager to benefit from a discount and try a renewed one. What’s more, they are likely to get back to you for repeated purchases.
- Renewed products are unpredictable. The truth is that even though Amazon provides a 90-days guarantee for a refurbished product, you can never know how it will perform in the hands of new buyers. Sometimes the repetitive returns are unavoidable.
- Not all buyers want to buy them, even despite the price. What’s more, when it comes to luxury products (for instance, those created by Apple we have already mentioned), most buyers pay for the opportunity to have an exclusively branded item and the unique feeling of owning such a product. Paradoxically, but they may want to pay in full for the completely new item.
How to Make Most Use of Amazon Renewed
So, Amazon Renewed comes with its pros and cons. Nevertheless, you can benefit from this opportunity if you approach this issue wisely. While not all users are sure about buying renewed products, the first thing you have to do is collect honest feedback from those who have already bought refurbished items and are satisfied with the choice.
To do it, consider using dedicated Amazon feedback management software. For example, SageMailer allows you to send kind requests to your previous customers and manage their feedback in a single place.
Also, never hide the fact that the product is refurbished. Otherwise, no social proof will help. Also, make sure to show the users the product’s real photos and videos and describe the traces of usage, like an opened box, scratches, and dents in detail. Such simple actions will help you build more credibility around your brand and your products, even though they can be refurbished.