Whether you are a seller or a buyer, the Amazon Warehouse promises the opportunity to save and make money.
The Amazon Warehouse deals take old stock in opened boxes or renewed stock and offer these at discount prices.
Imagine you are traveling the discount retail outlet for some top brands and you get the idea of what to expect here.
The question is whether everything about these Amazon Warehouse deals are what they look like.
Here we explore the pros and cons of buying from this Amazon Warehouse.
What is Amazon Warehouse Deal?
The Amazon Warehouse resells like-new, pre-owned, or open-box items that have been returned by customers.
As Amazon itself claims, this is a place to come if you are looking for a “great bargain”.
Amazon agrees to inspect each item before it is sold at discount and is still backed by a 30-day returns policy.
Amazon offers a full refund for any item returned in the 30-day window or a replacement with a product in a similar condition.
As Amazon is quick to point out, this service is a win for all parties. For buyers, there are great deals to be found on lots of quality products.
When you become attuned to the world of the Amazon Warehouse it is difficult to know why you would choose to buy at full price.
The backing of the deal with the promise to refund or replace if returned within 30 days adds that much-needed trust when dealing with pre-owned or renewed items.
It is also good for the seller who shifts inventory that would otherwise go to waste.
And, as we are using items that could have been binned, buying used items is a sustainable policy for the environment. It is an eco-friendly option.
So, how does a product sold on Amazon become a product that is distributed through the Amazon Warehouse?
What does this mean for the buyer and what does it mean for the seller?
Let’s keep reading and find out more!
How Does It Work for Buyers?
For a buyer, it couldn’t be simpler.
In some ways, it will be no different to when you interact with Amazon on a normal basis.
You will go to the Amazon site, click on the burger, and choose “Amazon Warehouse”.
You will see that the prices are displayed with a condition report.
You send the item to your basket, then you pay and receive your parcel and either agree it is still a good deal or returns it to Amazon within 30-days.
There are some points here that are worth some more exploration. Let’s start with the condition report.
All products when returned to Amazon go through a 20-point condition inspection. If there is a fault or it is looking a little beaten up, then it will get repaired at this point too.
A lot of items are returned with just the box open and the item in its original full working order. Therefore, you have the choice of condition when searching for your deal.
The condition report comes on a scale:
Renewed: This means that the product has been inspected and tested by a performance-managed supplier and designated as new. The product will come with a guarantee.
Used – like new: The item is in perfect working order and comes with all its accessories. The original packaging may be missing, so it will have been repackaged.
Used – very good: The item has been used a little but is still in good working order. You might find that there are some blemishes to the look of the item and the packaging may have been repaired or the product repackaged. You might want to check carefully, as some of the accessories may be missing.
Used – acceptable: This is the lowest quality that Amazon claims to let out of the warehouse. These items will definitely have a used look about them but will work properly. There are likely to be a lot of bumps and nicks on these items and there may be a lot of accessories missing. However, the price will reflect all of this.
None of these products when sent to you will come with a manufacturer’s warranty.
You are only covered by the Amazon 30-day returns policy, so you have to be sure of what you have bought quite promptly if you want to address concerns.
When you go to look for your product, the deals will look a lot like the normal site.
However, after the product name will be its condition in brackets.
There will also be the original products on the main site, so you can compare your savings when buying from the warehouse.
When you have chosen your bargain, you click buy, pay, and wait for your delivery.
It really couldn’t be simpler and if you enjoy bargain hunting, then it is a pleasure to skim through the available products.
How Does It Work for Sellers?
For sellers who choose to work within the FBA scheme, or Fulfillment by Amazon, this warehouse is a crucial part of your seller experience.
First, you are choosing FBA, so you do not have to worry about shipping and storage. You pay Amazon to do this for you.
Therefore, you are also buying into their policy of what happens when a product is returned.
One of the significant positives and negatives of FBA is that the returns policy makes it easy for your customer to feel they can make the purchase.
However, it also means that your products are going to be returned more than if this wasn’t the case.
As soon as the product has been bought, posted, and then returned, it can no longer be sold as new.
Even if the customer only took it out the box and thought “no, thanks” and returned it, this now falls under “open-box” condition and will be sold as “renewed” or “like new” in the Warehouse.
Oddly, however, these items cannot be sold via the warehouse, these must be sold through the marketplace using the same condition markers.
The issue is that, as a seller, you cannot automatically sell through Amazon Warehouse.
Only Amazon will sell through the warehouse when it deems this is where a product belongs.
Most items sold through the warehouse are actually owned by Amazon, rather than by the FBA sellers.
However, if your item is damaged while under the control of Amazon, they may reimburse you and then sell the damaged item through the warehouse, after refurbishing is complete.
What Buyers Should Know About Amazon Warehouse Deals?
First, the Amazon Warehouse Deals site is a legitimate place to find deep discounts for the products you desire.
There is a site called Amazon Warehouse Deals Inc. that was a scam site and resulted in many people being disappointed and duped.
This account has been removed but has been replaced by Pro Amazon Warehouse Deals.
Therefore, before we start looking at what you should know about the official Amazon Warehouse Deals site, make sure you have landed in the right place.
It is best to go through the menu system from the main Amazon.com site.
How to find amazon warehouse deals
Here is the best safe way to find warehouse deals.
- Visit Amazon.com, and choose ” Amazon Warehouse” from its search bar menu.
- Click on the search button, it will direct you to the warehouse deals page.
- Then, you can browse all available deals by selecting your interested product categories.
Like when buying from any retail outlet offering reconditioned or returned products, you need to be discerning about your choices.
You need to realize that you take a small risk of disappointment when buying this way and that you should be fully prepared to use the 30-days return policy.
Therefore, first you can choose to browse the different categories looking for the best deals.
Alternatively, you may know exactly what you want and search for this item.
There are thousands of opportunities at Amazon Warehouse, so chances are that you wouldn’t be disappointed by using this search option.
Amazon Warehouse Product Conditions
When you come across an item you can then assess how much risk you are willing to take.
The “renewed” and “like new” option will offer the least risk but also the smallest discount.
You are likely only going to save a small amount of paying full price.
If you opt for good or acceptable conditions, the discounts will be more substantial but the risk much higher.
You need to be aware of this- and that there might be items missing – when you choose to buy.
It will likely still be worth your while as purchasing replacements and/ or dealing a cosmetically damaged item will still leave you feeling like you got a good deal for the price paid.
Are Amazon Open-box deals good?
There is a huge selection of products and they are sold at competitive prices.
The returns policy promotes trust and there is the option for a full refund or replacement.
While this all suggests that you shouldn’t have much to complain about, a lot of people do. The main issue is the level of competency in the assessment of condition.
When people expect to see a “good” condition they are often surprised by what is judged as “good” which they might not even believe to be “acceptable”.
Now, they can return it to Amazon and get their money back, but they have been disappointed, and they will feel they have their time waster.
Therefore, the 72% approval rating is a symbol of this performance when categorizing the items being sold as deals.
However, if you approach the site with some common sense, you can get some amazing savings on everyday products and you will struggle to know the difference from those on the main site.
There is a no-quibble 30-day returns policy. You can receive a refund or a replacement item in a similar condition, if it is available.
Warehouse Deals Warranty
The manufacturer’s warranty is no longer valid once the item has been sold through this discount site.
Therefore, you are accepting that the manufacturer no longer has any responsibility to mend or replace the product.
This is a serious decision, especially when buying electronics.
How Does Amazon Clearance Deals Affect Sellers?
First, as a seller, Amazon Warehouse Deals are outside your control.
FBA sellers, when signing up, have agreed that Amazon will deal with the returns.
You cannot choose whether your item is sold in the warehouse or returned to your inventory.
Amazon owns these deals and only they choose which products qualify to be sold as deals.
They also decide the listing condition for the product.
All products sold by Amazon are subject to the returns policy and the terms and conditions, all of which make clear the FBA Lost and Damaged Inventory Reimbursement Policy.
If the item is returned for a reason that is deemed to be Amazon’s or a carrier for Amazon’s fault, then the seller will be given the money for the item.
At this point, the item is owned by Amazon and they may transfer it to the Warehouse Deals.
Sometimes, Amazon Warehouse Deals can compete for the Buy Box on the main site, the whole listing can be transferred to the Amazon Warehouse deals.
Some consider this decision making a form of hijacking of the listing.
In this respect, you could argue that the buy box has been grabbed by the company and you will lose sales.
You also need to be aware that if the customer leaves a negative review, it will be linked to your listings.
Obviously, people buying through the warehouse will be aware of the risks.
However, the possibility for disappointment is high and the chance for a negative review more likely.
Therefore, the impact on the seller could feel quite unfair, even though they have been reimbursed for the cost of the item by Amazon.
If you are thinking this is not what you understood, you should know that Amazon recently changed its policy for FBA sellers.
Items sent for repackaging are dictated by the company and are mandatory – before you could disable this option in your dashboard.
The decision to force FBA sellers into selling repackaged items in the Warehouse might feel like an unfair policy, as the grading and repackaging service is often done poorly and only enjoys a 72% approval rating.
This puts good sellers’ reputations at risk.
Only items that are considered below acceptable are returned to the seller’s unfulfillable inventory and the choice is then to pay for the item to be sent to you or disposed of by Amazon.
While repackaging services are mandatory, you can switch off the refurbishment setting – and sellers should opt to do this as soon as possible.
These refurbishment services carry an even higher level of risk for the FBA seller, as you are relying on the Amazon team to make a decent job of the refurbishment.
Change the setting in your seller dashboard, so you retain control over your account and prevent the listing from being hijacked by Amazon to your loss of reputation.
Amazon Warehouse Deals is a way for Amazon to offer its favorable returns policy without losing substantial amounts of money.
There are issues that buyers and sellers need to be aware of – and some notes for Amazon about what they should improve.
However, overall, this is an opportunity for making and saving some money that is worth some investigation.
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