One man’s unwanted item is another man’s treasure. If you want to flip around all your returned items and turn a profit, we have a special set of best practices for Amazon returns reselling. Better yet, it’s just in time for the holiday sales season.
For Amazon sellers, customer returns are a fact of life. Handling damaged and unwanted products is part and parcel of online order fulfillment. But don’t think of it as a necessary evil. When you resell returned items on Amazon, you’re bound to recoup their value and maximize your profits- if you do it right.
Emerging Customer Return Trends
Capital One says that, in the USA, clothing and computers are the most and the least returned types of products, respectively. Another nugget of information is that older consumers return more than the young. Also, retailers in Hawaii lose the most money on returns per capita, while those who sell to Californians lose the most in terms of sales value.
The NIQ 2024 Mid-Year Consumer Outlook adds that buyers expect greater value from their orders. They’re more interested in sustainability and innovation. But aspects like AI readiness, lifestyle changes, and the rising costs of hot commodities can open up new avenues for growth for sellers.
Statista claims return rates are dropping in the USA. But at 17.6%, they are still higher for online orders than for in-store purchases, according to the NRF’s 2023 Consumer Returns in the Retail Industry report. As digital sales are forecast to grow by 10% every year, you can expect your online claims to mount up.
Handling Customer Expectations for Returns
So, what do buyers say? According to the latest yearly emarsys survey, 86% of shoppers return their items and about a quarter resort to “wardrobing”. Why, you ask? Uncertainty. Customers want to try products virtually, access accurate descriptions, or get personalized recommendations.
Also, most shoppers avoid retailers who charge for returns. They are more loyal to sellers who offer free returns. And they’ll stop shopping from a retailer if they introduce return fees. Clearly, when it comes to handling customer expectations for returns, a rule of thumb is that you don’t charge Amazon buyers extra.
Why Resell Returned Items on Amazon?
With the holiday shopping season drawing near, return rates are bound to spike for all Amazon sellers. According to Capital One, retail return rates rose by 6.32% during the 2022 holiday season. They are likely to reach or exceed this level this year, causing more friction between buyers and sellers.
But frictionless retail has always been the standard for customer service on Amazon. So, it’s important to learn how to manage Amazon returns effectively. This guide provides actionable steps to help you categorize, prepare, and resell returned items on Amazon while maintaining customer satisfaction.
How to Resell Returned Items on Amazon
As a seller, the way you handle returns is probably nothing like Amazon’s FBA return services. Few sellers can offer freebies, return kiosks, consolidation, multiple inspections, fast-tracked donations or recycling options. But you’re not optionless. Here are a few best practices for Amazon returns reselling.
1. Inspect Returned Items
The first step in reselling returned products is to inspect them for damage, wear, or defects thoroughly. Feel free to apply the to-do list below to every Amazon return item inspection. Once your item ticks all these boxes, you can move on to the next stage and find the approach most likely to yield the most profit:
- Presentation. Determine if the original packaging is intact or if it needs replacing.
- Integrality. After categorizing Amazon returned products, look for missing parts and components specific to their category.
- Assess cosmetic conditionProducts can only be listed on Amazon if… More. Look for visible damage like scratches, dents, or signs of outer wear.
- Functionality. Ensure the item still works as intended, without hidden defects or damage affecting how users interact with it.
2. Determine Resale Potential
Not every returned item is worth reselling. Firstly, consider the cost of refurbishment. When repair or cleaning costs outweigh potential profits, it won’t pay to relist returned items on Amazon. Secondly, when you intend to refurbish Amazon returns for resale, look at product demand for a refurbished product. Finally, check that your items can be sold on Amazon if they are no longer new.
Refurbish If Necessary
It only makes sense to refurbish Amazon returns for resale if the items are slightly used or damaged but still functional. If so, consider cleaning or carrying out minor repairs. Replace damaged packaging and rebox products to make them more presentable. Check out this video on the FBA Grade and Resell program for tips on refurbishing.
4. Relist the Items
Now that they’re ready for resale, it’s time to relist returned items on Amazon in the appropriate conditionProducts can only be listed on Amazon if… More category. With unused or gently used items that have little to no wear and are fully functional, it’s safe to relist as Used – Like New Amazon returns. Fully functional items with moderate signs of use can usually be classified as Used – Good instead. Note that there are a few product categories with specific guidelines.
5. Manage Customer Expectations
Selling Amazon returned items calls for complete transparency. Point out any repairs and signs of wear. Then adjust your prices to the conditionProducts can only be listed on Amazon if… More and ensure they are competitive. To avoid a repeat, provide accurate product details. Showcase your items with visuals, ads, use scenarios, lifestyle photos, and condition notes.
Selling Amazon Returned Products: Key Takeaways
There’s much to do when you resell returned items on Amazon. You’re probably busy refurbishing and categorizing Amazon returned products. But if you leave our blog today with only 3 tips, let it be the following:
- You must inspect every returned item thoroughly before deciding to resell it.
- You’re welcome to try the FBA Grade and Resell program if you struggle to cope with returns.
- To prevent future returns and set realistic customer expectations, describe a product’s conditionProducts can only be listed on Amazon if… More accurately.
As you can see, you can always resell returned items on Amazon to recoup your investment and reduce waste. Our list of best practices for Amazon returns reselling shows you how to go about it so that you resell successfully and maintain customer satisfaction. But there’s always the option to sign up for the FBA Grade and Resell program and give your products a new lease of life.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.
One Response
Reselling returned items on Amazon requires careful inspection, quality assessment, and sometimes repackaging. With accurate listings and competitive pricing, sellers can turn returns into profitable opportunities effectively.